ASE Technology (NYSE:ASX) Shares Gap Down - Time to Sell?

Key Points

• ASE Technology shares fell sharply, opening at $41.54 versus the prior close of $44.33 and last trading near $41.07. Despite the drop, the stock remains above its 50-day and 200-day moving averages.
• Analyst sentiment is broadly positive: one analyst rates the stock Strong Buy and two rate it Buy, giving ASE Technology a consensus “Buy” rating, although one firm recently downgraded it to Hold.
• The company beat quarterly EPS expectations, reporting $0.29 versus the $0.23 consensus estimate. Institutional investors have also added positions, collectively owning 6.8% of the company.

ASE Technology Holding Co., Ltd. (NYSE:ASX - Get Free Report) gapped down prior to trading on Thursday. The stock had previously closed at $44.33, but opened at $41.54. ASE Technology shares last traded at $41.0680, with a volume of 3,245,869 shares trading hands.

Wall Street Analysts Forecast Growth

ASX has been the subject of several research reports. Zacks Research raised ASE Technology from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, September 22nd. Wall Street Zen lowered shares of ASE Technology from a "buy" rating to a "hold" rating in a research report on Saturday, September 19th. Finally, Weiss Ratings raised ASE Technology from a "hold (c+)" rating to a "buy (b)" rating in a report on Friday, October 9th. One equities research analyst has rated the stock with a Strong Buy rating and two have issued a Buy rating to the stock. According to MarketBeat, ASE Technology presently has a consensus rating of "Buy".

ASE Technology Price Performance

The stock has a fifty day moving average of $40.76 and a 200-day moving average of $36.84. The firm has a market capitalization of $92.15 billion, a P/E ratio of 47.85 and a beta of 1.66. The company has a quick ratio of 0.81, a current ratio of 1.07 and a debt-to-equity ratio of 0.54.

ASE Technology (NYSE:ASX - Get Free Report) last announced its earnings results on Thursday, July 30th. The semiconductor company reported $0.29 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.23 by $0.06. The company had revenue of $81.66 million for the quarter, compared to analyst estimates of $5.96 billion. ASE Technology had a net margin of 8.52% and a return on equity of 16.12%. Equities analysts predict that ASE Technology Holding Co., Ltd. will post 1.26 EPS for the current fiscal year.

Hedge Funds Weigh In On ASE Technology

Institutional investors and hedge funds have recently made changes to their positions in the company. Nilsine Partners LLC bought a new position in ASE Technology during the second quarter worth about $1,278,000. Nykredit A S acquired a new stake in ASE Technology during the second quarter worth approximately $14,247,000. Navellier & Associates Inc. acquired a new position in ASE Technology in the 2nd quarter valued at $3,975,000. Hsbc Holdings PLC lifted its position in ASE Technology by 7.5% during the first quarter. Hsbc Holdings PLC now owns 2,014,412 shares of the semiconductor company's stock worth $43,654,000 after purchasing an additional 140,628 shares during the period. Finally, Barometer Capital Management Inc. acquired a new stake in ASE Technology during the first quarter worth about $3,003,000. Institutional investors and hedge funds own 6.80% of the company's stock.

ASE Technology Company Profile

ASE Technology Holding Co, Ltd. is a Taiwan-based provider of semiconductor manufacturing services. Through its subsidiaries, the company offers outsourced semiconductor assembly and testing (OSAT) services, helping chip manufacturers package and test integrated circuits before they are incorporated into electronic products.

Its services include wafer probing, wafer bumping, flip-chip and wire-bond packaging, system-in-package and other advanced packaging technologies, as well as final testing and related engineering services.

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