Ferguson Wellman Capital Management Inc. Sells 21,337 Shares of Taiwan Semiconductor Manufacturing Company Ltd. $TSM

Key Points

• Ferguson Wellman Capital Management cut its TSMC stake by 15.2% in the third quarter, selling 21,337 shares and retaining 118,993 shares valued at approximately $54.3 million.
• TSMC shares rose 2.5% to $484.57, near their 52-week high, while analysts maintained a broadly positive outlook with a consensus “Buy” rating and an average price target of $523.22.
• TSMC reduced its quarterly dividend to $1.0854 per share, implying an annualized yield of 0.9%; the company continues to benefit from strong AI and advanced-chip demand, though customer concentration and overseas expansion costs remain risks.

Ferguson Wellman Capital Management Inc. lessened its holdings in Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) by 15.2% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 118,993 shares of the semiconductor company's stock after selling 21,337 shares during the period. Ferguson Wellman Capital Management Inc.'s holdings in Taiwan Semiconductor Manufacturing were worth $54,283,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds also recently bought and sold shares of the business. Cedar Mountain Advisors LLC increased its holdings in Taiwan Semiconductor Manufacturing by 88.2% in the 2nd quarter. Cedar Mountain Advisors LLC now owns 64 shares of the semiconductor company's stock worth $31,000 after acquiring an additional 30 shares in the last quarter. Markowski Investments acquired a new stake in shares of Taiwan Semiconductor Manufacturing in the second quarter valued at about $33,000. Hilton Head Capital Partners LLC acquired a new stake in shares of Taiwan Semiconductor Manufacturing in the fourth quarter valued at about $27,000. Evolution Wealth Management Inc. increased its stake in shares of Taiwan Semiconductor Manufacturing by 257.7% during the first quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company's stock worth $31,000 after purchasing an additional 67 shares in the last quarter. Finally, Strategic Advocates LLC increased its stake in shares of Taiwan Semiconductor Manufacturing by 62.1% during the fourth quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company's stock worth $28,000 after purchasing an additional 36 shares in the last quarter. Hedge funds and other institutional investors own 16.51% of the company's stock.

Taiwan Semiconductor Manufacturing Trading Up 2.5%

TSM stock traded up $11.79 during trading on Monday, reaching $484.57. 6,427,298 shares of the stock were exchanged, compared to its average volume of 13,116,459. The company has a current ratio of 2.46, a quick ratio of 2.25 and a debt-to-equity ratio of 0.14. The firm has a market capitalization of $2.51 trillion, a price-to-earnings ratio of 34.94, a P/E/G ratio of 1.05 and a beta of 1.37. The business has a 50 day moving average price of $425.59 and a 200-day moving average price of $409.69. Taiwan Semiconductor Manufacturing Company Ltd. has a 1 year low of $266.82 and a 1 year high of $485.73.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last released its quarterly earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 EPS for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 39.25%. The firm had revenue of $39.89 billion for the quarter. On average, research analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.56 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, January 7th. Stockholders of record on Thursday, December 10th will be issued a dividend of $1.0854 per share. The ex-dividend date is Thursday, December 10th. This represents a $4.34 dividend on an annualized basis and a dividend yield of 0.9%. This is a drop from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $1.1136. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is currently 25.25%.

Analysts Set New Price Targets

A number of research analysts recently weighed in on TSM shares. Stifel Nicolaus started coverage on shares of Taiwan Semiconductor Manufacturing in a research note on Tuesday, September 1st. They issued a "buy" rating and a $515.00 price target on the stock. Wall Street Zen cut Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 8th. Weiss Ratings raised Taiwan Semiconductor Manufacturing from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday, September 22nd. Bank of America raised their price objective on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the company a "buy" rating in a report on Wednesday, June 24th. Finally, Needham & Company LLC upped their target price on shares of Taiwan Semiconductor Manufacturing from $480.00 to $530.00 and gave the stock a "buy" rating in a report on Monday, July 27th. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Buy" and a consensus target price of $523.22.

Insider Buying and Selling

In related news, VP Shyue-Shyh Lin acquired 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction that occurred on Tuesday, July 21st. The shares were purchased at an average cost of $74.13 per share, for a total transaction of $74,130.00. Following the acquisition, the vice president owned 30,269 shares in the company, valued at approximately $2,243,840.97. This represents a 3.42% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, VP Bor-Zen Tien purchased 1,000 shares of the company's stock in a transaction on Monday, August 3rd. The shares were bought at an average price of $73.06 per share, with a total value of $73,060.00. Following the completion of the transaction, the vice president owned 14,051 shares of the company's stock, valued at approximately $1,026,566.06. The trade was a 7.66% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last ninety days, insiders acquired 16,106 shares of company stock valued at $1,186,463. 1.11% of the stock is currently owned by insiders.

Trending Headlines about Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Elon Musk confirmed that TSMC is in early discussions about building and operating a Texas chip plant for Terafab, a proposed manufacturing venture serving Tesla, SpaceX and xAI. Although the talks remain unconfirmed and no agreement has been announced, the possibility of dedicated capacity for Musk’s companies suggests a potentially significant future source of revenue. Musk confirms talks with TSMC over Terafab chip plant
• Positive Sentiment: Investor enthusiasm also reflects expectations that Apple, Nvidia and other major chip designers will keep TSMC’s advanced manufacturing facilities heavily utilized for years, supported by artificial-intelligence and high-performance-computing demand. TSMC hits another record but Nvidia and Apple demand may become its next problem
• Positive Sentiment: Several market commentators remain bullish ahead of the October 15 quarterly results, arguing that TSMC’s leadership in advanced chips and exposure to AI demand outweigh near-term valuation concerns. I'm Loading Up on Taiwan Semiconductor Ahead of Oct. 15 Earnings
• Neutral Sentiment: TSMC’s overseas expansion could strengthen geographic diversification and customer relationships, but new factories initially carry higher costs and lower margins. Investors are assessing whether overseas spending can be absorbed without weakening the earnings that support the company’s premium valuation. How Much Overseas Factory Cost Can TSMC’s Valuation Absorb?
• Negative Sentiment: Despite the record-setting rally, reliance on Nvidia and Apple creates concentration risk: any slowdown in their orders or broader AI-chip demand could pressure future growth. The Terafab discussions also remain preliminary, so the potential business should not yet be treated as committed revenue.

Taiwan Semiconductor Manufacturing Profile

Taiwan Semiconductor Manufacturing Company Limited NYSE: TSM, commonly known as TSMC, is a Taiwan-based semiconductor manufacturer and the world's largest dedicated semiconductor foundry. Founded in 1987 by Morris Chang, the company pioneered the pure-play foundry model, producing chips designed by other companies rather than selling products under its own semiconductor brand.

TSMC manufactures a broad range of integrated circuits, including advanced logic chips used in high-performance computing, smartphones, automotive systems, communications equipment, and consumer electronics.

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