ASML (NASDAQ:ASML) Shares Down 7.8% – Should You Sell?

ASML Holding N.V. (NASDAQ:ASML) was down 7.8% during trading on Tuesday . The stock traded as low as $1,755.97 and last traded at $1,778.46. Approximately 2,406,946 shares changed hands during trading, an increase of 29% from the average session volume of 1,863,565 shares. The stock had previously closed at $1,929.25.

Trending Headlines about ASML

Here are the key news stories impacting ASML this week:

• Positive Sentiment: Wells Fargo said it expects strong Q2 results from ASML and other chip-equipment makers, reinforcing the view that demand for advanced lithography tools remains healthy.
• Positive Sentiment: Bank of America raised its price target on ASML to $2,345 and kept a Buy rating, citing continued upside potential for the stock.
• Positive Sentiment: ASML continues to repurchase shares under its buyback program, which can support earnings per share and signals confidence from management.
• Neutral Sentiment: Several articles highlighted ASML as a long-term AI and semiconductor infrastructure leader, with analysts and commentators emphasizing its near-monopoly in advanced chip lithography.
• Negative Sentiment: ASML denied allegations that its EUV equipment was exported to China in violation of export controls, but the story keeps regulatory scrutiny and geopolitical risk front and center for investors.
• Negative Sentiment: The Netherlands joining the U.S.-led Pax Silica initiative despite the ASML dispute underscores that export-policy tensions remain a live issue that could affect sentiment toward the stock.

Analyst Ratings Changes

A number of research firms have weighed in on ASML. Jefferies Financial Group reiterated a “neutral” rating on shares of ASML in a research note on Monday, June 1st. Deutsche Bank Aktiengesellschaft reissued a “buy” rating on shares of ASML in a research note on Thursday, April 16th. DZ Bank restated a “neutral” rating on shares of ASML in a research note on Wednesday, April 15th. Wells Fargo & Company upped their price target on ASML from $1,750.00 to $2,200.00 and gave the stock an “overweight” rating in a report on Monday. Finally, Weiss Ratings downgraded ASML from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Tuesday, May 26th. Four equities research analysts have rated the stock with a Strong Buy rating, twenty have given a Buy rating, five have issued a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, ASML presently has a consensus rating of “Moderate Buy” and a consensus price target of $1,772.62.

ASML Price Performance

The stock’s 50-day moving average price is $1,604.59 and its 200 day moving average price is $1,407.30. The firm has a market capitalization of $699.43 billion, a price-to-earnings ratio of 63.79, a PEG ratio of 1.55 and a beta of 1.82. The company has a quick ratio of 0.78, a current ratio of 1.36 and a debt-to-equity ratio of 0.13.

ASML (NASDAQ:ASML) last posted its quarterly earnings results on Monday, March 30th. The semiconductor company reported $8.28 earnings per share for the quarter. ASML had a net margin of 27.65% and a return on equity of 48.69%. The firm had revenue of $10.15 billion for the quarter. Equities research analysts expect that ASML Holding N.V. will post 36.76 earnings per share for the current fiscal year.

Institutional Trading of ASML

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Capstone Wealth Management Group LLC lifted its holdings in ASML by 5.2% in the first quarter. Capstone Wealth Management Group LLC now owns 2,511 shares of the semiconductor company’s stock valued at $1,664,000 after acquiring an additional 124 shares during the last quarter. AQR Capital Management LLC raised its position in ASML by 141.1% in the first quarter. AQR Capital Management LLC now owns 6,871 shares of the semiconductor company’s stock valued at $4,553,000 after purchasing an additional 4,021 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in shares of ASML by 153.1% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 17,210 shares of the semiconductor company’s stock valued at $11,404,000 after purchasing an additional 10,411 shares during the last quarter. Sivia Capital Partners LLC lifted its stake in shares of ASML by 1.3% in the 2nd quarter. Sivia Capital Partners LLC now owns 1,168 shares of the semiconductor company’s stock valued at $936,000 after purchasing an additional 15 shares during the last quarter. Finally, NewEdge Advisors LLC grew its holdings in shares of ASML by 5.2% during the 2nd quarter. NewEdge Advisors LLC now owns 11,383 shares of the semiconductor company’s stock worth $9,122,000 after purchasing an additional 559 shares during the period. 26.07% of the stock is owned by institutional investors and hedge funds.

ASML Company Profile

ASML Holding N.V. (NASDAQ: ASML) is a Dutch company that develops, manufactures and services advanced photolithography systems used to produce semiconductor chips. Headquartered in Veldhoven, Netherlands, ASML supplies capital equipment and associated software and services that enable semiconductor manufacturers to pattern the intricate circuits on silicon wafers. The company is widely recognized for its leadership in extreme ultraviolet (EUV) lithography as well as its deep ultraviolet (DUV) platforms used across multiple process nodes.

ASML’s product portfolio includes EUV and DUV lithography machines, light sources, imaging optics and control software, together with spare parts, upgrades and field services.