ASML (NASDAQ:ASML) Stock Price Decline: Is It Time to Sell?

ASML Holding (NASDAQ:ASML) experienced a decline of 1.8% in its share price during trading on Friday. The stock hit a low of $678.88 and was last seen trading at $677.87. This trading day was marked by approximately 306,811 shares changing hands, which is a significant decrease of 80% from the average daily volume of 1,530,147 shares. Previously, the stock had closed at $690.63.

New Analyst Price Targets for ASML

Recently, several brokerages have shared their updated reports on ASML. DZ Bank upgraded the stock from a "hold" rating to a "buy" rating on January 30th. Moreover, Wells Fargo & Company raised their price target for ASML stocks from $790.00 to $860.00, assigning an "overweight" rating as of January 13th. In contrast, JPMorgan Chase & Co. lowered their price target from $1,148.00 to $1,100.00 while maintaining an "overweight" rating on January 30th. Additionally, BNP Paribas began covering ASML with an "outperform" rating and a $858.00 target price on December 3rd. Lastly, Sanford C. Bernstein reduced their target price on ASML from $815.00 to $767.00, also giving the stock an "outperform" rating on November 29th. Overall, amongst analysts, two have rated ASML with a hold, eight with a buy, and one with a strong buy rating. According to MarketBeat, ASML has an average rating of "Moderate Buy" and a consensus price target of $937.00.

Stock Performance and Financial Metrics

Currently, ASML's stock is trading down at 1.8%. The firm has a fifty-day simple moving average of $729.10 and a 200-day simple moving average of $732.67. Financially, ASML presents a quick ratio of 0.99, a current ratio of 1.53, and a modest debt-to-equity ratio of 0.20. The market capitalization of ASML stands at $266.73 billion, with a P/E ratio of 32.59 and a PEG ratio of 1.62, indicating sensitivity to market movements, as reflected by its beta of 1.54.

Recent Earnings Report

ASML released its earnings results on January 29th, reporting earnings per share (EPS) of $7.30, which fell short of the consensus estimate of $7.67 by $0.37. The semiconductor company boasts a net margin of 26.78% and a return on equity of 47.73%. Analysts forecast that ASML Holding will achieve an EPS of 25.17 for the current year.

Dividend Increase Announcement

The company recently announced a dividend, which was successfully paid out on February 19th. Shareholders recorded as of February 11th received a dividend of $1.5855, marking an increase from the previous $1.08. The ex-dividend date was also set for February 11th, and ASML's current dividend payout ratio is 31.35%.

Institutional Ownership Changes

Several institutional investors and hedge funds have modified their holdings in ASML. Edgewood Management LLC increased its position by 43.1% in the fourth quarter, owning 3,186,667 shares valued at approximately $2.21 billion after acquiring an additional 959,696 shares. Amundi boosted its stake by an impressive 4,880.5% in the same quarter, owning 335,284 shares worth around $247.02 million following an additional 328,552 shares purchase. Wellington Management Group LLP also increased its holdings by 53.4%, now controlling 807,257 shares valued at $559.49 million after buying an additional 281,156 shares. Raymond James Financial Inc. took a new position worth $175.26 million in ASML during the fourth quarter, while Fisher Funds Management LTD acquired a new stake worth $137.39 million. Overall, institutional investors now own 26.07% of the company's shares.

Overview of ASML Holding N.V.

ASML Holding N.V. specializes in developing, producing, marketing, selling, and servicing advanced semiconductor equipment systems targeting chipmakers. They offer various systems, including lithography, metrology, and inspection solutions, focusing on manufacturing a wide range of semiconductor nodes and technologies.

Key Considerations for Investors

As ASML stock faces some downward pressure, investors ponder whether it is the right time to sell. While the stock has a Moderate Buy rating overall, many analysts highlight alternative stocks that may present better investment opportunities.

Considering the recent dip in share price and the mixed reactions from analysts, it may be worthwhile to closely monitor ASML’s performance moving forward before making any definitive investment decisions.

ASML, Stocks, Dividend