ASML (NASDAQ:ASML) Stock Price Down 4.7% – Here’s Why

ASML Holding N.V. (NASDAQ:ASML) traded down 4.7% on Tuesday . The stock traded as low as $1,802.61 and last traded at $1,803.89. 1,780,363 shares changed hands during trading, a decline of 4% from the average session volume of 1,847,376 shares. The stock had previously closed at $1,892.66.

Key Stories Impacting ASML

Here are the key news stories impacting ASML this week:

• Positive Sentiment: ASML continues to benefit from strong AI-related chip demand, with articles highlighting its EUV lithography leadership, record order book, and raised outlook as reasons investors remain bullish on the stock.
• Positive Sentiment: Sanford C. Bernstein reiterated a buy rating, reinforcing confidence in ASML’s long-term position in advanced chip manufacturing.
• Positive Sentiment: The company is still repurchasing shares under its buyback program, which can support earnings per share and signal management confidence in the business.
• Neutral Sentiment: Several recent commentary pieces suggest ASML remains a “rare” and strategically important company for AI and next-generation chip production, but the articles are largely opinion-driven rather than new company-specific developments.
• Neutral Sentiment: Broader strength in semiconductor ETFs and sector momentum is also helping sentiment across chip stocks, including ASML, though this is more of an industry tailwind than a direct catalyst.
• Negative Sentiment: Some analysts and commentators are warning that ASML’s valuation is rich after its strong run, with mixed earnings estimates and high trailing earnings multiples creating risk of profit-taking.
• Negative Sentiment: A few articles argue investors may prefer other AI stocks after ASML’s sharp rise, which could signal that expectations are becoming stretched.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on the company. Sanford C. Bernstein reissued a “buy” rating on shares of ASML in a research note on Monday. The Goldman Sachs Group reissued a “buy” rating on shares of ASML in a research note on Thursday, June 11th. Weiss Ratings cut ASML from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday, May 26th. Jefferies Financial Group reissued a “neutral” rating on shares of ASML in a research note on Monday, June 1st. Finally, Barclays reaffirmed an “overweight” rating on shares of ASML in a research note on Thursday, June 4th. Four 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 issued a Sell rating to the company’s stock. According to data from MarketBeat, ASML currently has a consensus rating of “Moderate Buy” and an average price target of $1,589.63.

ASML Stock Performance

The stock has a market cap of $709.60 billion, a P/E ratio of 64.72, a PEG ratio of 1.49 and a beta of 1.82. The business has a 50 day moving average price of $1,551.33 and a 200 day moving average price of $1,378.24. 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 announced its quarterly earnings data on Monday, March 30th. The semiconductor company reported $8.28 earnings per share (EPS) for the quarter. ASML had a return on equity of 48.69% and a net margin of 27.65%.The company had revenue of $10.15 billion for the quarter. As a group, sell-side analysts expect that ASML Holding N.V. will post 36.86 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Militia Capital Management LLC bought a new position in ASML in the first quarter worth approximately $756,000. Pine Valley Investments Ltd Liability Co bought a new position in ASML in the first quarter worth approximately $219,000. Parallel Advisors LLC grew its stake in ASML by 19.7% in the first quarter. Parallel Advisors LLC now owns 3,480 shares of the semiconductor company’s stock worth $4,597,000 after purchasing an additional 573 shares in the last quarter. First Nebraska Trust Co bought a new position in ASML in the first quarter worth approximately $214,000. Finally, Cozad Asset Management Inc. grew its stake in ASML by 40.9% in the first quarter. Cozad Asset Management Inc. now owns 10,757 shares of the semiconductor company’s stock worth $14,208,000 after purchasing an additional 3,122 shares in the last quarter. Institutional investors own 26.07% of the company’s stock.

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.