ACLS stock touches 52-week low at $41 amid market challenges

Published 04/04/2025, 16:36
ACLS stock touches 52-week low at $41 amid market challenges

In a challenging market environment, Axcelis Technologies Inc. (NASDAQ:ACLS) stock has reached a 52-week low, dipping to $41.00. The semiconductor company, known for its specialized equipment used in chip manufacturing, has faced significant headwinds over the past year, reflected in a steep 1-year change of -59.77%. Despite trading at a P/E ratio of just 6.9x and maintaining a strong balance sheet with more cash than debt, the stock appears undervalued according to InvestingPro analysis. Investors have shown concern as the broader tech sector grapples with supply chain issues and fluctuating demand, factors that have contributed to the stock’s decline to this critical price level. Despite the current lows, market watchers are closely monitoring Axcelis Technologies for signs of a rebound as the industry adapts to the evolving economic landscape. InvestingPro analysis reveals 20+ additional investment insights for ACLS, including detailed financial health metrics and technical indicators that suggest the stock may be oversold.

In other recent news, Axcelis Technologies reported fourth-quarter results that exceeded expectations, with adjusted earnings per share of $1.54 and revenue of $252.4 million, surpassing analyst forecasts. However, the company’s guidance for the first quarter of 2025 disappointed, projecting earnings per share of $0.38 on $185 million in revenue, below the anticipated $1.02 EPS and $221.6 million in revenue. Following this announcement, DA Davidson reduced its price target for Axcelis Technologies to $100 from $125, while maintaining a Buy rating, citing anticipated industry slowdowns and increased operating expenses. Benchmark analysts also maintained a Hold rating on the stock, noting a weaker performance projection for the March quarter and a significant drop in the book-to-bill ratio. Additionally, Axcelis Technologies has increased its share repurchase authorization by $100 million, bringing the total to $215 million, as part of its strategy to enhance shareholder value. The company ended the year with $123.5 million in cash and cash equivalents, despite a revenue decline to $1.02 billion in 2024 from $1.13 billion in 2023. Axcelis’ gross margin improved to 44.7% in 2024 from 43.5% in 2023. These developments reflect the company’s efforts to navigate industry challenges while focusing on long-term growth opportunities.

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