ASML (NASDAQ:ASML) Stock Price Down 6.9% – Should You Sell?

ASML Holding N.V. (NASDAQ:ASML)’s share price traded down 6.9% on Thursday. The stock traded as low as $1,555.94 and last traded at $1,560.54. Approximately 2,022,628 shares were traded during mid-day trading, an increase of 16% from the average daily volume of 1,748,768 shares. The stock had previously closed at $1,676.69.

Key Headlines Impacting ASML

Here are the key news stories impacting ASML this week:

• Positive Sentiment: ASML’s extreme ultraviolet (EUV) lithography systems remain effectively unrivaled, and reports indicate its EUV machines are sold out through 2028. This supports strong visibility for revenue and reinforces the company’s strategic importance to advanced-chip manufacturers. Chinese Competitors Aren’t Eroding ASML’s EUV Core Monopoly
• Positive Sentiment: AI-related chip demand continues to exceed industry supply. ASML’s outlook suggests shortages in logic and memory chips could persist at least through 2028, benefiting equipment demand and customers such as Nvidia and Micron. ASML Has Incredible News for Nvidia Stock and Micron Stock Investors
• Positive Sentiment: Higher pricing for critical EUV machines is expected to begin in 2027 and have its full effect in 2028. Combined with upgrade-kit sales and an accelerated €4.1 billion third-quarter buyback, this points to potential margin and earnings-per-share expansion. ASML: New Pricing Power Makes The 28x Multiple A Bargain
• Neutral Sentiment: ASML is featured in Invesco’s new QQI international-innovators ETF, which could increase exposure to the stock, although the fund’s higher costs and lower liquidity limit the immediate investment significance. Invesco’s ETF Targets International Innovators
• Negative Sentiment: Chip-equipment stocks are declining after Lam Research warned that supply constraints could limit its outlook. The concern is spreading to Applied Materials and ASML, raising near-term worries about industry bottlenecks despite record demand. Lam Research Supply Warning Pressures Chip Equipment Stocks

Analysts Set New Price Targets

ASML has been the topic of a number of research analyst reports. Morgan Stanley restated an “overweight” rating on shares of ASML in a report on Tuesday, July 7th. Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $2,100.00 target price on shares of ASML in a research note on Wednesday, October 7th. UBS Group reiterated a “buy” rating on shares of ASML in a report on Monday, September 28th. DZ Bank raised ASML from a “hold” rating to a “strong-buy” rating in a research note on Thursday, July 16th. Finally, Citigroup restated a “buy” rating on shares of ASML in a report on Thursday, October 15th. Three equities research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, two have given a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $2,079.12.

ASML Trading Down 6.9%

The firm has a market cap of $613.73 billion, a P/E ratio of 38.42, a P/E/G ratio of 0.68 and a beta of 1.77. The business’s 50-day moving average is $1,725.60 and its two-hundred day moving average is $1,682.05. 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) last issued its quarterly earnings results on Sunday, September 27th. The semiconductor company reported $14.71 EPS for the quarter. ASML had a net margin of 34.10% and a return on equity of 64.24%. The firm had revenue of $13.27 billion for the quarter. As a group, analysts predict that ASML Holding N.V. will post 46.03 earnings per share for the current fiscal year.

ASML Cuts Dividend

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

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of ASML. Baron Wealth Management LLC raised its stake in shares of ASML by 1.8% during the 2nd quarter. Baron Wealth Management LLC now owns 333 shares of the semiconductor company’s stock worth $662,000 after purchasing an additional 6 shares in the last quarter. Whitener Capital Management Inc. grew its stake in shares of ASML by 2.8% in the second quarter. Whitener Capital Management Inc. now owns 218 shares of the semiconductor company’s stock valued at $434,000 after buying an additional 6 shares in the last quarter. Founders Financial Alliance LLC grew its stake in shares of ASML by 2.3% in the second quarter. Founders Financial Alliance LLC now owns 266 shares of the semiconductor company’s stock valued at $529,000 after buying an additional 6 shares in the last quarter. Evolution Wealth Management Inc. increased its holdings in ASML by 22.6% during the first quarter. Evolution Wealth Management Inc. now owns 38 shares of the semiconductor company’s stock worth $50,000 after buying an additional 7 shares during the last quarter. Finally, Bradley Foster & Sargent Inc. CT increased its holdings in ASML by 0.3% during the first quarter. Bradley Foster & Sargent Inc. CT now owns 2,232 shares of the semiconductor company’s stock worth $2,948,000 after buying an additional 7 shares during the last quarter. 26.07% of the stock is currently owned by institutional investors.

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.