ASML (NASDAQ:ASML) Stock Jumps 2.8% - Here's Why

Key Points

• ASML shares rose 2.8% to $1,635.57 in mid-day trading, with approximately 1.33 million shares changing hands.
• Analyst sentiment remains broadly positive: ASML has a consensus “Moderate Buy” rating and an average price target of $2,079.12, despite some neutral and downgrade actions.
• The company reported quarterly EPS of $14.71 on $13.27 billion in revenue, while its quarterly dividend was reduced to $2.1077 per share, yielding about 0.5%.

Shares of ASML Holding N.V. (NASDAQ:ASML - Get Free Report) shot up 2.8% during mid-day trading on Tuesday. The stock traded as high as $1,643.67 and last traded at $1,635.57. Approximately 1,326,899 shares changed hands during mid-day trading, a decline of 24% from the average session volume of 1,743,961 shares. The stock had previously closed at $1,590.90.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on ASML. Zacks Research downgraded ASML from a "strong-buy" rating to a "hold" rating in a research note on Friday, July 3rd. Morgan Stanley reissued an "overweight" rating on shares of ASML in a report on Tuesday, July 7th. Argus set a $2,100.00 price target on ASML in a research note on Thursday, July 16th. Wells Fargo & Company upped their price objective on ASML from $2,200.00 to $2,500.00 and gave the stock an "overweight" rating in a report on Thursday, July 16th. Finally, Jefferies Financial Group reaffirmed a "neutral" rating on shares of ASML in a research note on Wednesday, September 30th. Three investment analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, two have given a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $2,079.12.

ASML Price Performance

The firm has a market capitalization of $630.38 billion, a PE ratio of 40.27, a P/E/G ratio of 0.66 and a beta of 1.77. The company has a 50-day moving average price of $1,722.74 and a 200-day moving average price of $1,586.27. The company has a debt-to-equity ratio of 0.09, a current ratio of 1.49 and a quick ratio of 1.01.

ASML (NASDAQ:ASML - Get Free Report) last issued its quarterly earnings results on Sunday, September 27th. The semiconductor company reported $14.71 EPS for the quarter. The business had revenue of $13.27 billion during the quarter. ASML had a net margin of 34.10% and a return on equity of 64.24%. Sell-side analysts forecast that ASML Holding N.V. will post 46.03 EPS for the current year.

ASML Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, November 4th. Shareholders of record on Tuesday, October 27th will be paid a dividend of $2.1077 per share. This is a decrease from ASML's previous quarterly dividend of $2.1507. This represents a $8.43 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend is Tuesday, October 27th. ASML's payout ratio is 17.90%.

Institutional Trading of ASML

Institutional investors have recently modified their holdings of the company. Great Lakes Retirement Inc. lifted its stake in shares of ASML by 3.0% during the third quarter. Great Lakes Retirement Inc. now owns 2,481 shares of the semiconductor company's stock worth $4,494,000 after purchasing an additional 73 shares in the last quarter. Busey Bank raised its holdings in shares of ASML by 3.3% during the 3rd quarter. Busey Bank now owns 5,329 shares of the semiconductor company's stock valued at $9,655,000 after buying an additional 169 shares during the period. Asset Management One Co. Ltd. raised its holdings in shares of ASML by 1,972.7% during the 3rd quarter. Asset Management One Co. Ltd. now owns 684 shares of the semiconductor company's stock valued at $1,239,000 after buying an additional 651 shares during the period. Latitude Advisors LLC acquired a new position in ASML during the 3rd quarter worth approximately $85,000. Finally, Balance Wealth Partners LLC lifted its position in shares of ASML by 26.4% during the third quarter. Balance Wealth Partners LLC now owns 177 shares of the semiconductor company's stock worth $321,000 after purchasing an additional 37 shares in the last quarter. Hedge funds and other 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 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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