ASML reports transactions under its current share buyback program
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Insights
Share buyback programs, such as the one reported by ASML, can often be a signal of a company's confidence in its own financial health and future prospects. By repurchasing its shares, a company reduces the number of shares outstanding, which can increase the earnings per share (EPS) and potentially the share price, due to the perception of increased demand or intrinsic value.
However, the impact of such programs on the stock market is multifaceted. While it may provide a short-term boost to the stock price, it also indicates that the company has excess cash that it believes is best returned to shareholders rather than invested in new projects or acquisitions. This could be interpreted as a lack of viable growth opportunities, which may concern some investors regarding long-term value creation.
Furthermore, the timing and price of the buybacks should be scrutinized. ASML's transactions occurred across several days with varying prices, which could suggest a strategic approach to minimize market disruption and buyback cost. However, investors should consider the overall market conditions and the company's valuation to assess the timing and financial prudence of these buybacks.
From a financial perspective, ASML's share buyback transactions must be evaluated in the context of the company's balance sheet and cash flow statements. The total repurchased value over the course of these transactions amounts to a significant cash outflow, which could affect the company's liquidity ratios and leverage.
Investors should examine ASML's current ratio and debt-to-equity ratio to understand if the buyback program could impact the company's ability to meet short-term obligations or take on new debt. Moreover, the opportunity cost of these buybacks should be considered; the funds used for repurchasing shares might have been allocated to other value-generating investments.
It is also essential to analyze the buyback in the context of the company's historical performance, future earnings projections and overall industry performance. If the repurchases are made at a price below intrinsic value, it can be beneficial for shareholders. However, if the buybacks are executed at a price above intrinsic value, it may not be in the best interest of the shareholders in the long run.
ASML reports transactions under its current share buyback program
VELDHOVEN, the Netherlands – ASML Holding N.V. (ASML) reports the following transactions, conducted under ASML's current share buyback program.
| Date | Total repurchased shares | Weighted average price | Total repurchased value |
| 11-Mar-24 | 24,590 | 21,928,890 | |
| 12-Mar-24 | 11,235 | 9,918,734 | |
| 13-Mar-24 | 12,683 | 11,269,395 | |
| 14-Mar-24 | 9,709 | 8,577,413 | |
| 15-Mar-24 | 12,809 | 11,212,304 |
ASML’s current share buyback program was announced on 10 November 2022, and details are available on our website at https://www.asml.com/en/news/share-buybacks
This regular update of the transactions conducted under the buyback program is to be made public under the Market Abuse Regulation (Nr. 596/2014).
| Media Relations Contacts | Investor Relations Contacts |
| Monique Mols, phone +31 6 528 444 18 | Skip Miller, phone +1 480 235 0934 |
| Marcel Kemp, phone +31 40 268 6494 | |
| Peter Cheang, phone +886 3 659 6771 |
FAQ
How many shares did ASML repurchase under its current share buyback program?
What was the weighted average price of the repurchased shares?
What is the total value of the repurchased shares?
When was ASML's current share buyback program announced?
