ASML (NASDAQ:ASML) Shares Down 9.3% - Here's Why

Key Points

• ASML shares fell 9.3% to $1,356.65 in heavy trading, with volume 128% above its daily average.
• The decline appears tied to a broader post-election semiconductor sell-off and uncertainty about the industry’s next spending cycle, rather than a newly reported company-specific issue.
• Demand indicators remain supportive: customer down payments suggest lithography orders exceed available supply, and ASML is the sole supplier of EUV equipment. Investors are also watching the company’s fourth-quarter delivery outlook.

Shares of ASML Holding N.V. (NASDAQ:ASML - Get Free Report) traded down 9.3% during mid-day trading on Thursday. The stock traded as low as $1,355.05 and last traded at $1,356.65. Approximately 3,987,362 shares traded hands during mid-day trading, an increase of 128% from the average daily volume of 1,747,196 shares. The stock had previously closed at $1,496.30.

Trending Headlines about ASML

Here are the key news stories impacting ASML this week:

• Positive Sentiment: Demand indicators remain supportive: customer down payments suggest orders for ASML’s lithography machines still exceed available supply. ASML’s role as the sole supplier of extreme ultraviolet lithography equipment also ties it to advanced-chip and AI demand. ASML Sinks 8% as Post-Election Chip Rout Deepens
• Neutral Sentiment: ASML’s fourth-quarter delivery outlook is a near-term operating checkpoint for investors watching how equipment demand and shipments develop. ASML Stocks Fall as Investors Question the Next Spending Cycle
• Negative Sentiment: The immediate pressure appears to come from a broader post-election semiconductor sell-off and uncertainty about the next industry spending cycle, rather than a newly reported problem at ASML. ASML Sinks as Post-Election Chip Rout Deepens

Wall Street Analyst Weigh In

ASML has been the subject of several research reports. UBS Group reaffirmed a "buy" rating on shares of ASML in a research report on Monday, September 28th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating on shares of ASML in a research note on Friday, July 10th. Weiss Ratings downgraded shares of ASML from a "buy (b)" rating to a "buy (b-)" rating in a research note on Friday, October 30th. Jefferies Financial Group reiterated a "neutral" rating on shares of ASML in a research note on Wednesday, September 30th. Finally, Wall Street Zen upgraded ASML from a "hold" rating to a "buy" rating in a report on Saturday, October 17th. Three equities research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, two have given a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $2,079.12.

ASML Trading Down 9.3%

The company's fifty day moving average is $1,691.24 and its two-hundred day moving average is $1,599.37. The stock has a market cap of $522.88 billion, a price-to-earnings ratio of 33.40, a PEG ratio of 0.64 and a beta of 1.80. The company has a quick ratio of 1.01, a current ratio of 1.49 and a debt-to-equity ratio of 0.09.

ASML (NASDAQ:ASML - Get Free Report) last issued its quarterly earnings results on Sunday, September 27th. The semiconductor company reported $14.71 earnings per share (EPS) for the quarter. ASML had a net margin of 34.10% and a return on equity of 64.24%. The company had revenue of $13.27 billion during the quarter. On average, research analysts predict that ASML Holding N.V. will post 46.54 EPS for the current fiscal year.

ASML Cuts Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, November 4th. Stockholders of record on Tuesday, October 27th were given a dividend of $2.1077 per share. This is a decrease from ASML's previous quarterly dividend of $2.1507. The ex-dividend date of this dividend was Tuesday, October 27th. This represents a $8.43 annualized dividend and a dividend yield of 0.6%. ASML's dividend payout ratio is presently 17.55%.

Hedge Funds Weigh In On ASML

A number of institutional investors and hedge funds have recently modified their holdings of the company. NBH Bank purchased a new stake in ASML during the second quarter worth approximately $26,000. Gilpin Wealth Management LLC increased its position in shares of ASML by 275.0% during the third quarter. Gilpin Wealth Management LLC now owns 15 shares of the semiconductor company's stock worth $27,000 after acquiring an additional 11 shares during the last quarter. Quest 10 Wealth Builders Inc. acquired a new stake in shares of ASML during the third quarter worth approximately $27,000. Field & Main Bank bought a new stake in shares of ASML in the 2nd quarter worth about $30,000. Finally, Vision Financial Markets LLC bought a new position in ASML during the 3rd quarter worth approximately $36,000. Institutional investors and hedge funds own 26.07% of the company's stock.

ASML Company Profile

ASML Holding N.V. is a Netherlands-based technology company that develops and manufactures advanced lithography systems used by semiconductor manufacturers to produce integrated circuits. Its equipment helps customers transfer intricate circuit patterns onto silicon wafers, a critical step in the production of processors, memory chips and other semiconductor devices.

ASML's product portfolio includes extreme ultraviolet (EUV) lithography systems, which support the production of the most advanced chips, as well as deep ultraviolet (DUV) lithography systems for a broad range of semiconductor applications.

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