Morningstar Investment Management LLC Sells 62,972 Shares of Taiwan Semiconductor Manufacturing Company Ltd. $TSM

Key Points

• Morningstar Investment Management cut its stake in Taiwan Semiconductor Manufacturing by 61.6% in the fourth quarter, selling 62,972 shares and leaving it with 39,337 shares worth about $11.95 million.
• Several other institutional investors added to or initiated positions in TSMC, while institutional ownership overall stands at 16.51% of the company’s stock.
• Analysts remain broadly positive: TSMC has a consensus Buy rating with a target price of $404.29, and the company recently increased its quarterly dividend to $1.1136 per share.

Morningstar Investment Management LLC lessened its position in shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) by 61.6% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 39,337 shares of the semiconductor company's stock after selling 62,972 shares during the period. Taiwan Semiconductor Manufacturing comprises 0.7% of Morningstar Investment Management LLC's holdings, making the stock its 21st largest position. Morningstar Investment Management LLC's holdings in Taiwan Semiconductor Manufacturing were worth $11,954,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors have also recently added to or reduced their stakes in the company. SLT Holdings LLC increased its holdings in Taiwan Semiconductor Manufacturing by 8.9% during the 4th quarter. SLT Holdings LLC now owns 2,449 shares of the semiconductor company's stock worth $744,000 after purchasing an additional 200 shares in the last quarter. Allen Capital Group LLC increased its holdings in Taiwan Semiconductor Manufacturing by 0.5% during the 4th quarter. Allen Capital Group LLC now owns 45,038 shares of the semiconductor company's stock worth $13,687,000 after purchasing an additional 216 shares in the last quarter. Hantz Financial Services Inc. increased its holdings in Taiwan Semiconductor Manufacturing by 23.9% during the 4th quarter. Hantz Financial Services Inc. now owns 46,101 shares of the semiconductor company's stock worth $14,010,000 after purchasing an additional 8,885 shares in the last quarter. Wealthquest Corp bought a new position in Taiwan Semiconductor Manufacturing during the 4th quarter worth about $441,000. Finally, Dilation Capital Management LP acquired a new position in shares of Taiwan Semiconductor Manufacturing during the 4th quarter worth about $10,238,000. Institutional investors own 16.51% of the company's stock.

Insider Activity

In related news, VP Tzu-Sou Chuang sold 200,000 shares of the firm's stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $69.83, for a total value of $13,966,000.00. Following the completion of the sale, the vice president directly owned 2,495,165 shares in the company, valued at approximately $174,237,371.95. This trade represents a 7.42% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, VP Bor-Zen Tien bought 2,000 shares of the business's stock in a transaction that occurred on Tuesday, May 19th. The stock was purchased at an average price of $69.91 per share, with a total value of $139,820.00. Following the completion of the purchase, the vice president directly owned 11,051 shares in the company, valued at $772,575.41. The trade was a 22.10% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders purchased a total of 3,346 shares of company stock valued at $218,005 over the last quarter. 1.11% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on the stock. Wall Street Zen upgraded shares of Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a research note on Sunday, March 22nd. Zacks Research downgraded shares of Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "hold" rating in a research note on Monday, March 16th. Weiss Ratings upgraded shares of Taiwan Semiconductor Manufacturing from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, March 20th. Wedbush restated an "outperform" rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday, February 11th. Finally, DA Davidson restated a "buy" rating and set a $450.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, April 17th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have given a Hold rating to the company. According to MarketBeat, Taiwan Semiconductor Manufacturing presently has a consensus rating of "Buy" and a consensus target price of $404.29.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: AMD said it is ramping production of its next-generation EPYC “Venice” processors on TSMC’s 2nm process, highlighting that TSMC’s most advanced manufacturing node is already winning major AI/HPC customers. AMD Announces Production Ramp of Next-Generation AMD EPYC Processor “Venice” on TSMC 2nm Process Technology
• Positive Sentiment: AMD’s CEO also said the company is asking partners to ramp production due to strong AI demand, which suggests continued strength for TSMC as a critical manufacturing partner. AMD asking partners to ramp up production, CEO says
• Positive Sentiment: TSMC raised its 2030 global semiconductor market forecast to more than $1.5 trillion, signaling a bigger long-term demand runway for chip production. Taiwan Semiconductor Manufacturing Company Ltd. Raises 2030 Global Semiconductor Market Forecast to Over USD1.5 Trillion
• Positive Sentiment: Nvidia’s strong AI results and upbeat outlook helped lift sentiment across Asian chipmakers, reinforcing investor confidence in TSMC’s AI supply-chain role. Nvidia's AI Outlook Sends Asian Chipmakers Up 5.5%
• Neutral Sentiment: Taiwan’s central bank is considering limits on how often foreign investors can switch currencies for TSMC dividend payments, a policy issue that could affect some shareholders but is unlikely to change the business outlook directly. Taiwan may limit currency switching for TSMC dollar dividends to once a year, sources say
• Neutral Sentiment: Tokyo Electron’s Taiwan unit said it will not appeal a trade-secrets ruling tied to TSMC, which lowers legal uncertainty but appears limited in direct financial impact. Tokyo Electron's Taiwan unit says it will not appeal ruling in TSMC trade secrets case
• Negative Sentiment: Articles focused on slowing TSM growth and a potential bottleneck to Nvidia’s expansion underscore investor concern that TSMC’s infrastructure capacity may eventually constrain AI-chip demand growth. IDVO's $445 Million Income Play Faces a Critical Test When TSM Growth Slows

Taiwan Semiconductor Manufacturing Trading Down 0.1%

Taiwan Semiconductor Manufacturing stock opened at $404.24 on Monday. The firm has a 50-day moving average of $370.58 and a 200-day moving average of $338.50. Taiwan Semiconductor Manufacturing Company Ltd. has a one year low of $190.03 and a one year high of $421.97. The company has a debt-to-equity ratio of 0.16, a current ratio of 2.49 and a quick ratio of 2.32. The company has a market cap of $2.09 trillion, a price-to-earnings ratio of 33.63, a P/E/G ratio of 1.18 and a beta of 1.39.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last posted its quarterly earnings data on Tuesday, February 10th. The semiconductor company reported $3.11 EPS for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 46.97% and a return on equity of 36.81%. The company had revenue of $30.65 billion during the quarter. On average, equities analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.28 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently announced 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. This is an increase from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.95. The ex-dividend date is Wednesday, September 16th. This represents a $4.45 annualized dividend and a yield of 1.1%. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is 24.71%.

About Taiwan Semiconductor Manufacturing

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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