Dorsey Wright & Associates Takes $1.67 Million Position in Taiwan Semiconductor Manufacturing Company Ltd. $TSM

Key Points

• Dorsey Wright & Associates opened a new position in Taiwan Semiconductor Manufacturing, buying 5,508 shares worth about $1.67 million in the fourth quarter.
• Other institutions have also been adding to TSMC, while analyst sentiment remains broadly positive with an average “Buy” rating and a consensus price target of $404.29.
• TSMC continues to show strong fundamentals, with its stock near a 52-week high, a recent quarterly EPS of $3.11, and a higher quarterly dividend of $1.1136 per share.

Dorsey Wright & Associates bought a new position in shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) in the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor bought 5,508 shares of the semiconductor company's stock, valued at approximately $1,674,000.

Several other large investors also recently modified their holdings of the business. Brighton Jones LLC raised its position in Taiwan Semiconductor Manufacturing by 20.9% during the 4th quarter. Brighton Jones LLC now owns 10,930 shares of the semiconductor company's stock valued at $2,159,000 after purchasing an additional 1,892 shares during the last quarter. Gamco Investors INC. ET AL purchased a new stake in Taiwan Semiconductor Manufacturing in the 2nd quarter worth approximately $701,000. Bank of Nova Scotia lifted its holdings in Taiwan Semiconductor Manufacturing by 12.8% in the 2nd quarter. Bank of Nova Scotia now owns 15,697 shares of the semiconductor company's stock worth $3,556,000 after buying an additional 1,784 shares during the period. FWL Investment Management LLC grew its position in shares of Taiwan Semiconductor Manufacturing by 26.5% in the 2nd quarter. FWL Investment Management LLC now owns 253 shares of the semiconductor company's stock worth $57,000 after buying an additional 53 shares during the last quarter. Finally, Main Street Financial Solutions LLC bought a new stake in shares of Taiwan Semiconductor Manufacturing in the 2nd quarter worth approximately $270,000. 16.51% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several research firms have recently issued reports on TSM. Zacks Research cut Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "hold" rating in a research note on Monday, March 16th. Barclays raised their price target on Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the stock an "overweight" rating in a research note on Wednesday, April 22nd. Weiss Ratings upgraded shares of Taiwan Semiconductor Manufacturing from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday, March 20th. DA Davidson reissued a "buy" rating and set a $450.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research report on Friday, April 17th. Finally, Needham & Company LLC upped their price objective on shares of Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the stock a "buy" rating in a report on Thursday, April 16th. Two analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, Taiwan Semiconductor Manufacturing presently has an average rating of "Buy" and a consensus price target of $404.29.

Taiwan Semiconductor Manufacturing Stock Performance

Shares of TSM opened at $462.80 on Friday. The company has a 50-day simple moving average of $405.01 and a two-hundred day simple moving average of $357.43. The company has a debt-to-equity ratio of 0.16, a current ratio of 2.49 and a quick ratio of 2.31. The firm has a market capitalization of $2.40 trillion, a PE ratio of 38.50, a price-to-earnings-growth ratio of 1.26 and a beta of 1.38. Taiwan Semiconductor Manufacturing Company Ltd. has a one year low of $206.20 and a one year high of $465.22.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last posted its earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 36.81% and a net margin of 46.97%.The firm had revenue of $30.65 billion for the quarter. On average, analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.3 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 8th. Investors of record on Wednesday, September 16th will be paid a $1.1136 dividend. The ex-dividend date of this dividend is Wednesday, September 16th. This is a positive change from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.95. This represents a $4.45 annualized dividend and a yield of 1.0%. Taiwan Semiconductor Manufacturing's payout ratio is currently 25.12%.

Insiders Place Their Bets

In other news, VP Lipen Yuan acquired 1,000 shares of the firm's stock in a transaction on Monday, June 15th. The stock was acquired at an average price of $75.26 per share, for a total transaction of $75,260.00. Following the completion of the acquisition, the vice president owned 4,000 shares in the company, valued at $301,040. This trade represents a 33.33% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Bor-Zen Tien acquired 2,000 shares of the stock in a transaction on Tuesday, May 19th. The shares were purchased at an average cost of $69.91 per share, with a total value of $139,820.00. Following the transaction, the vice president directly owned 11,051 shares of the company's stock, valued at approximately $772,575.41. This trade represents a 22.10% increase in their position. The SEC filing for this purchase provides additional information. Over the last 90 days, insiders bought 4,496 shares of company stock worth $304,667. 1.11% of the stock is owned by corporate insiders.

Key Stories Impacting Taiwan Semiconductor Manufacturing

Here are the key news stories impacting Taiwan Semiconductor Manufacturing this week:

• Positive Sentiment: TSMC signed a 10-year advanced packaging deal with Amkor in Arizona, which expands its U.S. manufacturing footprint and supports long-term demand for advanced chip packaging. TSMC and Amkor Sign 10-Year Advanced Packaging Deal in Arizona
• Positive Sentiment: Several recent articles highlight TSMC as a top momentum and AI beneficiary stock, reinforcing the market view that it remains a core pick for growth investors. Here's Why TSMC (TSM) is a Great Momentum Stock to Buy
• Positive Sentiment: An insider purchase by TSMC Vice President Lipen Yuan added to confidence in the company’s outlook, since insider buying is often seen as a sign management believes the stock can go higher. Taiwan Semiconductor Manufacturing NYSE: TSM VP Lipen Yuan Buys 1,000 Shares
• Positive Sentiment: Reports that TSMC is benefiting from tight global foundry capacity and strong AI chip demand continue to support the bull case for the stock. Samsung draws advanced chipmaking interest as TSMC capacity tightens
• Neutral Sentiment: Market commentary has also focused on TSMC’s valuation and momentum after a large run-up, which may keep the stock volatile even as the long-term growth story remains intact. TSM at $426: Bubble Territory or a Buy for the Next AI Supercycle?
• Negative Sentiment: One headline flagged potential export controls on AI chip sales to China, which could limit future revenue opportunities and weigh on sentiment. Taiwan Semiconductor Manufacturing Company Limited (TSM) In Spotlight Amid Taiwan Chip Curbs on China
• Negative Sentiment: There is also concern that major customers may diversify away from TSMC toward Samsung or Intel for some future production, which could create longer-term competition pressure. Apple Chip Production Deal Represents Big Opportunity For Intel, Wedbush Says

Taiwan Semiconductor Manufacturing Profile

Taiwan Semiconductor Manufacturing Company (TSMC) is a leading pure-play semiconductor foundry that provides wafer fabrication and related services to the global semiconductor industry. Founded in 1987 by Morris Chang and headquartered in Hsinchu, Taiwan, TSMC manufactures integrated circuits on behalf of fabless and integrated device manufacturers, offering contract chip production across a broad set of technologies and products.

TSMC's service offering covers logic and mixed-signal process technologies, specialty processes for radio-frequency, power management and embedded memory, and advanced nodes used in mobile, high-performance computing and AI applications.

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