Orca Investment Management LLC Takes Position in Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)

Key Points

• Orca Investment Management LLC has acquired a new stake in Taiwan Semiconductor Manufacturing Company Ltd. (TSM), purchasing 7,725 shares valued at approximately $1.3 million, making it the fund's 28th largest position.
• The company reported earnings of $2.47 per share for the last quarter, exceeding estimates and showing a significant year-over-year revenue increase of 44.4%.
• Despite positive earnings, Taiwan Semiconductor has announced a dividend cut, with the upcoming quarterly dividend set at $0.6499 per share, yielding 1.06% annually.

Orca Investment Management LLC purchased a new stake in shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) during the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund purchased 7,725 shares of the semiconductor company's stock, valued at approximately $1,282,000. Taiwan Semiconductor Manufacturing accounts for approximately 1.3% of Orca Investment Management LLC's holdings, making the stock its 28th biggest position.

Other institutional investors also recently bought and sold shares of the company. Price T Rowe Associates Inc. MD boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 67.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 10,365,404 shares of the semiconductor company's stock valued at $2,047,065,000 after buying an additional 4,158,772 shares in the last quarter. FMR LLC increased its stake in shares of Taiwan Semiconductor Manufacturing by 4.6% in the 4th quarter. FMR LLC now owns 58,547,257 shares of the semiconductor company's stock worth $11,562,498,000 after acquiring an additional 2,572,488 shares in the last quarter. Jennison Associates LLC lifted its position in Taiwan Semiconductor Manufacturing by 36.8% during the 1st quarter. Jennison Associates LLC now owns 9,509,032 shares of the semiconductor company's stock valued at $1,578,499,000 after acquiring an additional 2,559,512 shares during the period. Sarasin & Partners LLP bought a new stake in Taiwan Semiconductor Manufacturing during the first quarter worth about $362,773,000. Finally, Franklin Resources Inc. grew its holdings in Taiwan Semiconductor Manufacturing by 32.3% in the fourth quarter. Franklin Resources Inc. now owns 8,498,063 shares of the semiconductor company's stock worth $1,678,283,000 after purchasing an additional 2,074,329 shares during the period. 16.51% of the stock is owned by institutional investors.

Taiwan Semiconductor Manufacturing Price Performance

Shares of TSM opened at $245.55 on Friday. Taiwan Semiconductor Manufacturing Company Ltd. has a twelve month low of $133.57 and a twelve month high of $248.28. The company has a market capitalization of $1.27 trillion, a P/E ratio of 28.00, a price-to-earnings-growth ratio of 1.18 and a beta of 1.29. The firm has a 50 day moving average of $217.47 and a 200 day moving average of $194.75. The company has a quick ratio of 2.18, a current ratio of 2.39 and a debt-to-equity ratio of 0.22.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last issued its earnings results on Thursday, July 17th. The semiconductor company reported $2.47 EPS for the quarter, beating the consensus estimate of $2.13 by $0.34. The business had revenue of $30.07 billion for the quarter, compared to the consensus estimate of $28.50 billion. Taiwan Semiconductor Manufacturing had a return on equity of 34.53% and a net margin of 42.91%. The company's revenue was up 44.4% compared to the same quarter last year. During the same period last year, the business posted $1.48 EPS. As a group, equities research analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 9th. Investors of record on Tuesday, September 16th will be issued a $0.6499 dividend. The ex-dividend date is Tuesday, September 16th. This represents a $2.60 annualized dividend and a yield of 1.06%. Taiwan Semiconductor Manufacturing's payout ratio is 28.16%.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on TSM. Susquehanna lifted their target price on shares of Taiwan Semiconductor Manufacturing from $255.00 to $265.00 and gave the company a "positive" rating in a report on Monday, July 14th. Needham & Company LLC reiterated a "buy" rating and set a $270.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research note on Thursday, July 17th. Barclays reissued an "overweight" rating and issued a $240.00 target price (up from $215.00) on shares of Taiwan Semiconductor Manufacturing in a report on Tuesday, June 3rd. Finally, Citigroup restated a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a report on Thursday, May 22nd. One research analyst has rated the stock with a hold rating and four have given a buy rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $258.33.

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It provides a range of wafer fabrication processes, including processes to manufacture complementary metal- oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, bipolar CMOS mixed-signal, and others.

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