ASML (NASDAQ:ASML) Stock Falls 1.4% - Should You Sell?

Key Points

• ASML shares fell 1.4% to $1,834.10, while trading volume was slightly below average. The stock remains above its 50-day and 200-day moving averages.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and an average price target of $1,970.33, implying upside from the reported price.
• ASML reported $10.62 billion in quarterly revenue and $8.65 in earnings per share, but reduced its quarterly dividend to $2.1507 per share from $3.1771, producing a 0.5% yield.

Shares of ASML Holding N.V. (NASDAQ:ASML - Get Free Report) dropped 1.4% during trading on Tuesday. The stock traded as low as $1,819.09 and last traded at $1,834.10. Approximately 1,623,781 shares traded hands during mid-day trading, a decline of 8% from the average daily volume of 1,757,219 shares. The stock had previously closed at $1,859.86.

Wall Street Analyst Weigh In

Several analysts have issued reports on the company. Morgan Stanley restated an "overweight" rating on shares of ASML in a research note on Tuesday, July 7th. Citigroup reaffirmed a "buy" rating on shares of ASML in a report on Friday, July 17th. Barclays restated an "overweight" rating on shares of ASML in a research report on Thursday, July 16th. Royal Bank Of Canada raised their price objective on shares of ASML from $1,700.00 to $2,000.00 and gave the company an "outperform" rating in a research report on Tuesday, July 14th. Finally, Zacks Research cut shares of ASML from a "strong-buy" rating to a "hold" rating in a research report on Friday, July 3rd. Three equities research analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, three have given a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $1,970.33.

ASML Stock Down 1.4%

The firm has a market cap of $721.32 billion, a PE ratio of 57.07, a PEG ratio of 0.94 and a beta of 1.77. The company has a debt-to-equity ratio of 0.09, a quick ratio of 0.80 and a current ratio of 1.33. The company's 50-day simple moving average is $1,724.83 and its two-hundred day simple moving average is $1,648.82.

ASML (NASDAQ:ASML - Get Free Report) last issued its quarterly earnings data on Sunday, June 28th. The semiconductor company reported $8.65 earnings per share for the quarter. ASML had a return on equity of 52.71% and a net margin of 30.11%.The firm had revenue of $10.62 billion for the quarter. On average, analysts predict that ASML Holding N.V. will post 44.01 earnings per share for the current fiscal year.

ASML Cuts Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, August 5th. Shareholders of record on Tuesday, July 28th were given a dividend of $2.1507 per share. This represents a $8.60 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend was Tuesday, July 28th. This is a negative change from ASML's previous quarterly dividend of $3.1771. ASML's payout ratio is presently 22.59%.

Hedge Funds Weigh In On ASML

A number of institutional investors have recently added to or reduced their stakes in the company. Eastern Bank boosted its holdings in shares of ASML by 14.0% during the 3rd quarter. Eastern Bank now owns 1,421 shares of the semiconductor company's stock valued at $2,575,000 after buying an additional 175 shares in the last quarter. Polaris Financial Partners purchased a new position in ASML during the 3rd quarter valued at about $730,000. Boltwood Capital Management grew its holdings in ASML by 20.9% in the third quarter. Boltwood Capital Management now owns 260 shares of the semiconductor company's stock worth $471,000 after purchasing an additional 45 shares during the period. Stonebridge Financial Group LLC increased its stake in shares of ASML by 12.4% during the third quarter. Stonebridge Financial Group LLC now owns 145 shares of the semiconductor company's stock valued at $263,000 after purchasing an additional 16 shares in the last quarter. Finally, Marathon Mission Inc. lifted its holdings in shares of ASML by 3.5% during the third quarter. Marathon Mission Inc. now owns 599 shares of the semiconductor company's stock valued at $1,085,000 after purchasing an additional 20 shares during the last quarter. Institutional investors own 26.07% of the company's stock.

About ASML

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 projects patterns onto silicon wafers, enabling the creation of increasingly smaller and more powerful semiconductor features.

ASML's product portfolio includes extreme ultraviolet (EUV) lithography systems, deep ultraviolet (DUV) lithography systems, and related metrology and inspection solutions.

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