Element Squared LLC Cuts Stake in Taiwan Semiconductor Manufacturing Company Ltd. $TSM

Key Points

• Element Squared LLC cut its TSMC stake by 20.4% in the first quarter, selling 1,647 shares and leaving it with 6,443 shares valued at about $2.18 million.
• Institutional activity has been mixed, with several smaller funds adding new positions while hedge funds and other institutions still own about 16.51% of TSMC shares.
• TSMC is drawing strong attention from analysts and investors thanks to its AI-chip growth prospects, a higher dividend, and multiple Buy ratings, even as the stock has recently traded near record highs.

Element Squared LLC reduced its holdings in shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) by 20.4% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 6,443 shares of the semiconductor company's stock after selling 1,647 shares during the period. Taiwan Semiconductor Manufacturing comprises approximately 1.2% of Element Squared LLC's portfolio, making the stock its 27th biggest holding. Element Squared LLC's holdings in Taiwan Semiconductor Manufacturing were worth $2,177,000 at the end of the most recent quarter.

Several other large investors have also recently made changes to their positions in the business. Quattro Advisors LLC purchased a new stake in shares of Taiwan Semiconductor Manufacturing in the 4th quarter valued at $25,000. Hilton Head Capital Partners LLC purchased a new position in Taiwan Semiconductor Manufacturing in the 4th quarter worth $27,000. Stephens Consulting LLC raised its position in Taiwan Semiconductor Manufacturing by 82.0% in the 4th quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company's stock worth $28,000 after purchasing an additional 41 shares during the period. Strategic Advocates LLC raised its position in Taiwan Semiconductor Manufacturing by 62.1% in the 4th quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company's stock worth $28,000 after purchasing an additional 36 shares during the period. Finally, Ares Financial Consulting LLC bought a new stake in Taiwan Semiconductor Manufacturing in the fourth quarter worth $29,000. 16.51% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC is reportedly accelerating development of panel-level CoPoS advanced packaging for AI chips, a next-generation technology that could strengthen its long-term competitive moat and support future AI-related revenue growth. TSMC targets 2029 for panel-level CoPoS packaging in AI chip push - DigiTimes
• Positive Sentiment: Several market recaps say TSMC remains a preferred way to play the AI semiconductor boom, with analysts citing manufacturing expansion, steady estimate revisions, and broad AI infrastructure spending as reasons the stock could have more upside. TSMC vs. NVIDIA: Which AI Semiconductor Stock Should You Buy in July?
• Positive Sentiment: TSMC was highlighted in another AI-capex stock-pick article as a key beneficiary of rising demand for chips, reinforcing the view that the company is one of the main winners from the current AI spending cycle. 4 Semiconductor Stocks to Buy Right Now to Ride on the AI Capex Boom
• Positive Sentiment: TSMC also received a consensus “Buy” rating from analysts, which supports the stock’s upward move by signaling continued Street confidence in the company’s earnings power and AI exposure. Taiwan Semiconductor Manufacturing Company Ltd. NYSE: TSM Receives Consensus Rating of "Buy" from Analysts
• Neutral Sentiment: One report noted that a TSMC vice president bought 1,000 shares in an insider purchase, a modest confidence signal but not a major near-term catalyst. Insider transaction filing
• Negative Sentiment: One market update said the stock was down slightly in premarket trading as investors paused after its strong run toward record highs, suggesting some near-term profit taking after a sharp rally. What’s Going On With Taiwan Semiconductor Stock Tuesday?

Insider Transactions at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Tzu-Sou Chuang sold 200,000 shares of the company's stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $69.83, for a total transaction of $13,966,000.00. Following the completion of the transaction, the vice president owned 2,495,165 shares of the company's stock, valued at $174,237,371.95. This represents a 7.42% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, VP Lipen Yuan acquired 1,000 shares of the company's stock in a transaction on Monday, June 22nd. The stock was acquired at an average price of $79.19 per share, with a total value of $79,190.00. Following the acquisition, the vice president owned 5,000 shares in the company, valued at approximately $395,950. This trade represents a 25.00% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders bought 5,496 shares of company stock worth $404,567. Company insiders own 1.11% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have issued reports on TSM. Zacks Research lowered shares of Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "hold" rating in a research report on Monday, March 16th. Needham & Company LLC lifted their price objective on Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the stock a "buy" rating in a report on Thursday, April 16th. Wall Street Zen raised Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a research note on Sunday, March 22nd. Weiss Ratings reissued a "buy (b-)" rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday, June 17th. Finally, Bank of America raised their price target on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the stock a "buy" rating in a research report on Wednesday, June 24th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Buy" and an average price target of $449.38.

Taiwan Semiconductor Manufacturing Trading Up 5.0%

NYSE:TSM opened at $477.85 on Wednesday. The company has a fifty day moving average of $417.94 and a 200 day moving average of $366.08. Taiwan Semiconductor Manufacturing Company Ltd. has a 52 week low of $221.18 and a 52 week high of $479.00. The company has a quick ratio of 2.31, a current ratio of 2.49 and a debt-to-equity ratio of 0.16. The firm has a market capitalization of $2.48 trillion, a P/E ratio of 39.75, a P/E/G ratio of 1.15 and a beta of 1.38.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last announced its quarterly earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share (EPS) for the quarter. The business had revenue of $30.65 billion for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 46.97% and a return on equity of 36.81%. On average, research analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.35 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 8th. Stockholders of record on Wednesday, September 16th will be issued a dividend of $1.1136 per share. This is an increase from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.95. This represents a $4.45 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date is Wednesday, September 16th. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is currently 25.12%.

Taiwan Semiconductor Manufacturing Company 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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