investors urged to join class action against ASML
Netherlands, Monday, 9 December 2024.
BFA Law is calling on ASML Holding N.V. investors to join a class action lawsuit before the deadline on January 13, 2025. This legal move follows revelations from financial disclosures and an earnings call that suggest possible mismanagement impacting ASML’s stock performance. The lawsuit, filed in the U.S. District Court for the Southern District of New York, accuses ASML and its senior executives of federal securities law violations. These issues emerged after ASML’s disappointing earnings announcement in October 2024, which showed revenues significantly below expectations. This news led to a sharp decline in ASML’s stock, dropping 16% in a single day. Investors have the opportunity to seek a lead role in the lawsuit, with legal representation offered on a contingency fee basis, meaning shareholders won’t bear court costs or litigation expenses. BFA Law encourages affected investors to explore their legal options promptly.
Stock performance and market impact
The market reaction to ASML’s financial disclosures was severe, with the stock price plummeting from $872.27 to $730.43 on October 15, 2024 [1]. The following day saw an additional 6.4% decline to $683.52, driven by concerns about slow recovery and declining sales to China [1]. Despite ASML’s strong historical performance, with revenue increasing by 30.16% to 27.56 billion EUR in 2023 [2], the recent market turbulence has sparked significant investor concern.
Institutional investor movements
Major institutional investors have shown mixed reactions to ASML’s situation. While some firms like Orion Portfolio Solutions LLC increased their position by 12.1% in Q3 2024 [4], others like Wellington Management Group LLP reduced their stake by 56.0% [4]. Stifel Financial Corp demonstrated confidence by raising its stake 16.1% [4], suggesting varied interpretations of ASML’s market position.
Company fundamentals and industry position
ASML maintains its position as a crucial player in semiconductor equipment systems, with approximately 40,940 employees and annual revenue of $28 billion [6]. The company’s current enterprise value to EBITDA ratio stands at 27.20 [5], indicating a valuation 8.52% below its trailing twelve-month average [5]. This metric suggests the market is reassessing ASML’s growth prospects in light of recent developments.