ASML (NASDAQ:ASML) Stock Price Down 5.8% – Here’s Why

ASML Holding N.V. (NASDAQ:ASML) was down 5.8% during trading on Monday . The stock traded as low as $1,613.34 and last traded at $1,655.26. Approximately 3,320,962 shares traded hands during trading, an increase of 75% from the average daily volume of 1,896,301 shares. The stock had previously closed at $1,757.09.

Key ASML News

Here are the key news stories impacting ASML this week:

• Positive Sentiment: J.P. Morgan described the selloff as “disproportionate,” arguing that ASML still maintains a substantial technological and production advantage over Chinese competitors. Why J.P. Morgan Says the ASML Stock Selloff Is Disproportionate
• Positive Sentiment: An analyst upgrade highlighted improving visibility for ASML’s AI-driven growth, multi-year net system sales prospects, and increasing adoption of high-NA EUV systems, which now account for more than 15% of EUV revenue. The company’s forward valuation was also described as more attractive relative to its historical average. ASML AI Growth Story Has Entered a New Phase
• Positive Sentiment: ASML continued its share buyback program, repurchasing roughly 249,000 shares for approximately €390 million from July 20 through July 24. Buybacks can support per-share results and signal management’s confidence in the business. ASML Reports Transactions Under Its Current Share Buyback Program
• Neutral Sentiment: Zeiss, a critical supplier for ASML’s EUV systems, is expanding its German production site. The investment could help support long-term capacity, though it does not immediately change ASML’s competitive position. Zeiss Expands German Site
• Negative Sentiment: Reports say a Chinese state-backed company has begun mass-producing immersion DUV machines, with deliveries potentially going to SMIC, Hua Hong Semiconductor, and ChangXin Memory Technologies later this year. Investors fear these tools could reduce China’s dependence on ASML and pressure the company’s regional sales, particularly for mature-node chip production. ASML Stock Sinks as China Reportedly Starts Producing Homegrown DUV Machines
• Negative Sentiment: The China-related report triggered broader semiconductor-sector weakness, as investors reassessed the risk of increased Chinese competition and potential disruption to Western chip-equipment demand. Chip Stocks Slide as China Advances Domestic Lithography

Analyst Ratings Changes

Several brokerages recently commented on ASML. Susquehanna reaffirmed a “positive” rating on shares of ASML in a research report on Tuesday, June 30th. DZ Bank upgraded ASML from a “hold” rating to a “strong-buy” rating in a research note on Thursday, July 16th. Berenberg Bank restated a “buy” rating on shares of ASML in a research report on Friday, May 8th. Zacks Research cut ASML from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 3rd. Finally, Argus set a $2,100.00 price target on shares of ASML in a research report on Thursday, July 16th. Four research analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, four have given a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, ASML presently has a consensus rating of “Moderate Buy” and an average target price of $1,970.33.

ASML Stock Performance

The firm’s 50-day moving average price is $1,754.95 and its two-hundred day moving average price is $1,526.71. 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 stock has a market cap of $650.98 billion, a price-to-earnings ratio of 51.50, a PEG ratio of 0.90 and a beta of 1.78.

ASML (NASDAQ:ASML) last announced its quarterly earnings results on Sunday, June 28th. The semiconductor company reported $8.65 earnings per share (EPS) for the quarter. The business had revenue of $10.64 billion during the quarter. ASML had a net margin of 30.11% and a return on equity of 52.71%. On average, analysts expect that ASML Holding N.V. will post 43.6 EPS for the current fiscal year.

ASML Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, August 5th. Stockholders of record on Tuesday, July 28th will be paid a $2.1507 dividend. This represents a $8.60 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date of this dividend is Tuesday, July 28th. ASML’s payout ratio is 33.51%.

Hedge Funds Weigh In On ASML

A number of hedge funds and other institutional investors have recently bought and sold shares of ASML. Cornerstone Financial Management LLC acquired a new stake in shares of ASML during the fourth quarter worth about $26,000. Binnacle Investments Inc increased its holdings in ASML by 78.9% in the second quarter. Binnacle Investments Inc now owns 34 shares of the semiconductor company’s stock valued at $27,000 after buying an additional 15 shares during the last quarter. Resources Management Corp CT ADV lifted its stake in ASML by 1,150.0% during the fourth quarter. Resources Management Corp CT ADV now owns 25 shares of the semiconductor company’s stock worth $27,000 after purchasing an additional 23 shares during the last quarter. North Star Investment Management Corp. lifted its position in shares of ASML by 68.8% during the 4th quarter. North Star Investment Management Corp. now owns 27 shares of the semiconductor company’s stock worth $29,000 after buying an additional 11 shares during the last quarter. Finally, Jessup Wealth Management Inc purchased a new stake in ASML in the fourth quarter valued at $30,000. 26.07% of the stock is currently owned by hedge funds and other institutional investors.

About ASML

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.