ASML Holding N.V. (NASDAQ:ASML) experienced a significant drop in share price, falling by 5.6% during mid-day trading on Thursday. The stock hit a low of $977.00 before settling at $981.04, with trading volume reaching 2,034,447 shares—up 21% from the average of 1,674,807. Previously, ASML had closed at $1,039.33.
Despite the recent decline, ASML has received positive endorsements from various analysts. Goldman Sachs maintained a “buy” rating on the shares as of October 10, while Deutsche Bank reiterated a similar stance on October 16. Additionally, Redburn Partners established a price target of $1,200.00 for the stock in a report on November 7. Mizuho upgraded ASML from “neutral” to “outperform” on September 29, and Weiss Ratings improved its rating from “hold (c+)” to “buy (b-)” on October 24. Overall, the stock holds an average rating of “Moderate Buy,” with a consensus price target of approximately $1,076.33, reflecting a high degree of analyst confidence.
ASML reported its quarterly earnings on October 15, revealing earnings per share (EPS) of $6.41, which exceeded analysts’ expectations of $6.27. Revenue was $8.71 billion, slightly below the projected $8.99 billion, but still marked a year-over-year increase of 0.7%. The company’s net margin stood at 27.08%, with a return on equity of 47.74%. Analysts forecast that ASML will report an EPS of 25.17 for the current fiscal year.
In a show of confidence for investors, ASML recently increased its quarterly dividend to $1.857 per share, up from $1.86, resulting in a yield of 0.8%. This dividend was paid to shareholders on November 6, with an ex-dividend date of October 29, and reflects a payout ratio of 25.76%.
Institutional investors are also showing their support for ASML. Notable contributions include Capital International Investors increasing its stake in ASML by 17.3%, now owning approximately 3.9 million shares valued at nearly $3.8 billion. T. Rowe Price Investment Management and Arrowstreet Capital also acquired new stakes during the third quarter, indicating increased institutional interest in the semiconductor giant.
ASML is recognized for its development and production of advanced semiconductor equipment systems, offering cutting-edge solutions in lithography, metrology, and inspection systems, essential for the manufacturing of various semiconductor technologies.
Overall, ASML continues to demonstrate resilience in a dynamic market environment. With strong analyst support, solid earnings growth, and a commitment to returning value to shareholders through dividends, the company remains a key player in the semiconductor industry, poised for recovery and potential growth moving forward.