Perpetual Ltd Sells 40,043 Shares of Taiwan Semiconductor Manufacturing Company Ltd. $TSM

Key Points

• Perpetual Ltd. reduced its TSMC position by 13.6%, selling 40,043 shares and retaining 254,651 shares valued at approximately $116.2 million at quarter-end.
• TSMC shares opened at $444.81, with analysts maintaining an overall “Buy” consensus and an average price target of $524.89. The company reported $4.28 in quarterly EPS, $39.89 billion in revenue, and a 50.31% net margin.
• TSMC’s quarterly dividend was cut to $1.0854 per share, or $4.34 annualized, resulting in an approximately 1.0% yield; investors remain focused on strong AI-driven demand but also on elevated valuation and capital-spending risks.

Perpetual Ltd decreased its holdings in shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) by 13.6% in the third quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 254,651 shares of the semiconductor company's stock after selling 40,043 shares during the quarter. Taiwan Semiconductor Manufacturing comprises about 1.8% of Perpetual Ltd's portfolio, making the stock its 14th biggest holding. Perpetual Ltd's holdings in Taiwan Semiconductor Manufacturing were worth $116,169,000 at the end of the most recent quarter.

Other hedge funds have also modified their holdings of the company. Janus Henderson Group PLC boosted its position in Taiwan Semiconductor Manufacturing by 7.7% during the fourth quarter. Janus Henderson Group PLC now owns 8,291,884 shares of the semiconductor company's stock worth $2,497,638,000 after acquiring an additional 594,780 shares during the last quarter. Tiger Global Management LLC grew its stake in Taiwan Semiconductor Manufacturing by 49.4% during the 1st quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company's stock valued at $1,880,717,000 after acquiring an additional 1,839,600 shares in the last quarter. Invesco Ltd. raised its holdings in Taiwan Semiconductor Manufacturing by 1.1% in the 4th quarter. Invesco Ltd. now owns 3,721,823 shares of the semiconductor company's stock valued at $1,131,025,000 after acquiring an additional 40,842 shares during the last quarter. Sei Investments Co. raised its holdings in Taiwan Semiconductor Manufacturing by 11.8% in the 1st quarter. Sei Investments Co. now owns 2,591,510 shares of the semiconductor company's stock valued at $875,802,000 after acquiring an additional 274,389 shares during the last quarter. Finally, T. Rowe Price Investment Management Inc. lifted its stake in Taiwan Semiconductor Manufacturing by 168.6% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 2,093,115 shares of the semiconductor company's stock worth $636,077,000 after purchasing an additional 1,313,917 shares in the last quarter. 16.51% of the stock is currently owned by institutional investors and hedge funds.

Taiwan Semiconductor Manufacturing Stock Down 1.9%

TSM stock opened at $444.81 on Tuesday. Taiwan Semiconductor Manufacturing Company Ltd. has a one year low of $266.82 and a one year high of $487.47. The firm has a market cap of $2.31 trillion, a PE ratio of 32.09, a PEG ratio of 1.00 and a beta of 1.37. The firm's 50 day moving average price is $433.89 and its 200-day moving average price is $415.05. The company has a debt-to-equity ratio of 0.14, a quick ratio of 2.25 and a current ratio of 2.46.

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

Taiwan Semiconductor Manufacturing Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, January 7th. Shareholders of record on Thursday, December 10th will be given a $1.0854 dividend. This is a decrease from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $1.1136. This represents a $4.34 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date is Thursday, December 10th. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is presently 24.96%.

Analyst Ratings Changes

Several research analysts have recently weighed in on TSM shares. Barclays boosted their target price on Taiwan Semiconductor Manufacturing from $650.00 to $665.00 and gave the stock an "overweight" rating in a report on Tuesday, October 6th. Needham & Company LLC upped their price target on Taiwan Semiconductor Manufacturing from $480.00 to $530.00 and gave the company a "buy" rating in a research report on Monday, July 27th. Susquehanna increased their price target on Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a "positive" rating in a report on Thursday, July 16th. Bank of America lifted their price objective 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. Finally, DA Davidson lifted their price objective on Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the stock a "buy" rating in a research report on Friday, July 17th. Three research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, Taiwan Semiconductor Manufacturing has an average rating of "Buy" and an average price target of $524.89.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: AI demand is accelerating. Recent revenue data and analyst previews point to faster-than-expected growth, supported by high-performance computing, advanced logic chips, and continued data-center investment. TSMC’s monthly revenue trends suggest another strong quarter. TSMC Revenue Growth Accelerated Faster Than Expected Last Quarter
• Positive Sentiment: Expectations for the October 15 report are high. Forecasts cited in the coverage call for approximately $46.7 billion in third-quarter revenue and $23.4 billion in profit, while TSMC’s prior guidance was $44.6 billion to $45.8 billion in revenue. Investors will focus on AI-related growth, HPC demand, 3-nanometer production, margins, and capacity plans. TSMC Eyes Third-Quarter Profit and Revenue Forecasts
• Positive Sentiment: TSMC remains strategically essential to the chip industry. Its leading position in advanced logic manufacturing and virtual monopoly in some cutting-edge processes make it a major beneficiary of the AI infrastructure buildout. Some prominent investors and analysts continue to identify TSM as a preferred AI-chip investment. Stanley Druckenmiller Has a Large TSMC Position
• Neutral Sentiment: Smartphone industry changes could provide an additional tailwind. Rising memory prices may pressure low-end handset demand and push consumers toward more expensive phones, potentially increasing demand for higher-value chips manufactured by TSMC. The Death of Cheap Smartphones
• Negative Sentiment: Valuation and cash-flow concerns are limiting enthusiasm. After a substantial share-price advance, investors are questioning whether future cash generation can justify TSM’s premium valuation while the company undertakes heavy capital spending to expand capacity. Any earnings or guidance shortfall could trigger profit-taking. Can TSMC Justify Its Price on Cash Flow?

Insider Buying and Selling at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Lipen Yuan purchased 350 shares of the firm's stock in a transaction dated Tuesday, August 18th. The shares were acquired at an average price of $73.58 per share, with a total value of $25,753.00. Following the purchase, the vice president directly owned 2,000 shares in the company, valued at approximately $147,160. This trade represents a 21.21% increase in their position. The purchase was disclosed in a document filed with the SEC, which is available at the SEC website. Also, VP Bor-Zen Tien purchased 1,000 shares of the stock in a transaction dated Monday, August 3rd. The shares were acquired at an average price of $73.06 per share, with a total value of $73,060.00. Following the completion of the acquisition, the vice president owned 14,051 shares in the company, valued at approximately $1,026,566.06. This trade represents a 7.66% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have acquired 16,043 shares of company stock worth $1,185,746 over the last quarter. 1.11% of the stock is currently owned by company insiders.

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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