Advanced Energy Industries (NASDAQ:AEIS) Stock Price Down 8.8% - Here's Why

Key Points

• Advanced Energy Industries shares fell 8.8% to approximately $225.81, with trading volume down 94% from the average session.
• Despite the decline, analyst sentiment remains positive: the stock has a consensus “Moderate Buy” rating and an average price target of $409.50.
• The company recently exceeded quarterly expectations, reporting $2.74 in EPS and $574.1 million in revenue, up 30% year over year; institutional investors own 99.67% of the shares.

Advanced Energy Industries, Inc. (NASDAQ:AEIS - Get Free Report)'s stock price was down 8.8% during trading on Thursday. The stock traded as low as $223.03 and last traded at $225.8050. 44,009 shares traded hands during trading, a decline of 94% from the average session volume of 740,700 shares. The stock had previously closed at $247.55.

Analyst Ratings Changes

Several research firms have issued reports on AEIS. Susquehanna increased their target price on shares of Advanced Energy Industries from $430.00 to $535.00 and gave the stock a "positive" rating in a research note on Tuesday, June 30th. Seaport Research Partners upgraded shares of Advanced Energy Industries from a "neutral" rating to a "buy" rating and set a $410.00 price target for the company in a research report on Tuesday, August 4th. Citigroup reiterated a "buy" rating on shares of Advanced Energy Industries in a research report on Monday, September 28th. Needham & Company LLC restated a "buy" rating and set a $400.00 target price on shares of Advanced Energy Industries in a research report on Tuesday, August 4th. Finally, Zacks Research upgraded Advanced Energy Industries from a "hold" rating to a "strong-buy" rating in a research report on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $409.50.

Advanced Energy Industries Price Performance

The firm has a market capitalization of $8.68 billion, a P/E ratio of 40.42 and a beta of 1.31. The business's 50-day simple moving average is $279.22 and its 200 day simple moving average is $314.73. The company has a quick ratio of 2.94, a current ratio of 3.79 and a debt-to-equity ratio of 0.78.

Advanced Energy Industries (NASDAQ:AEIS - Get Free Report) last announced its quarterly earnings data on Monday, August 3rd. The electronics maker reported $2.74 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.21 by $0.53. Advanced Energy Industries had a net margin of 10.77% and a return on equity of 20.75%. The company had revenue of $574.10 million during the quarter, compared to analysts' expectations of $544.41 million. During the same quarter in the prior year, the company earned $1.50 EPS. The firm's revenue was up 30.0% on a year-over-year basis. Advanced Energy Industries has set its Q3 2026 guidance at 2.750-3.250 EPS. Sell-side analysts forecast that Advanced Energy Industries, Inc. will post 9.53 earnings per share for the current year.

Advanced Energy Industries Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, September 4th. Stockholders of record on Monday, August 24th were paid a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.2%. The ex-dividend date of this dividend was Monday, August 24th. Advanced Energy Industries's payout ratio is 7.46%.

Insider Activity

In related news, EVP Elizabeth Vonne sold 632 shares of the firm's stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $288.14, for a total transaction of $182,104.48. Following the transaction, the executive vice president directly owned 9,177 shares in the company, valued at $2,644,260.78. This trade represents a 6.44% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Eduardo Acebedo sold 24,771 shares of Advanced Energy Industries stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $315.48, for a total value of $7,814,755.08. Following the completion of the transaction, the chief operating officer directly owned 23,109 shares in the company, valued at $7,290,427.32. This trade represents a 51.74% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 27,218 shares of company stock valued at $8,562,008 over the last 90 days. 1.30% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the company. BlackRock Inc. purchased a new stake in Advanced Energy Industries during the 2nd quarter valued at $1,725,045,000. Bank of America Corp DE bought a new position in shares of Advanced Energy Industries during the second quarter valued at about $382,342,000. The Manufacturers Life Insurance Company purchased a new stake in shares of Advanced Energy Industries during the second quarter worth about $166,162,000. Arrowstreet Capital Limited Partnership boosted its holdings in shares of Advanced Energy Industries by 17.0% during the first quarter. Arrowstreet Capital Limited Partnership now owns 335,591 shares of the electronics maker's stock worth $108,299,000 after purchasing an additional 48,842 shares during the period. Finally, Bank of New York Mellon Corp bought a new stake in shares of Advanced Energy Industries in the second quarter worth about $95,719,000. 99.67% of the stock is owned by hedge funds and other institutional investors.

About Advanced Energy Industries

Advanced Energy Industries, Inc develops and manufactures precision power-conversion, measurement and control technologies. Its products are designed to regulate, transform and deliver electrical power with high levels of accuracy and reliability in demanding industrial applications.

The company's portfolio includes direct-current and alternating-current power supplies, radio-frequency power systems, high-voltage power supplies, thermal-management equipment, power control modules, and measurement and control instruments.

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