Taiwan Semiconductor Manufacturing Company Ltd. $TSM Stock: Commonwealth Equity Services LLC Trims Stake

Key Points

• Commonwealth Equity Services trimmed its TSMC stake by 1.2% in the third quarter, selling 3,943 shares; it still held 321,555 shares worth about $146.7 million.
• TSMC reported quarterly EPS of $4.60, beating the $4.45 consensus, while revenue rose 41.2% year over year to $46.72 billion.
• Analyst sentiment remains broadly positive, with a consensus “Buy” rating and a $533.89 price target. TSMC also lowered its quarterly dividend to $1.0854 per share from $1.1136.

Commonwealth Equity Services LLC cut its holdings in Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) by 1.2% during the 3rd quarter, according to its most recent disclosure with the SEC. The institutional investor owned 321,555 shares of the semiconductor company's stock after selling 3,943 shares during the period. Commonwealth Equity Services LLC's holdings in Taiwan Semiconductor Manufacturing were worth $146,690,000 as of its most recent filing with the SEC.

Other institutional investors and hedge funds have also modified their holdings of the company. Tiger Global Management LLC increased its position in shares of Taiwan Semiconductor Manufacturing by 49.4% in the first quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company's stock worth $1,880,717,000 after purchasing an additional 1,839,600 shares during the period. Sei Investments Co. lifted its position in Taiwan Semiconductor Manufacturing by 11.8% during the first quarter. Sei Investments Co. now owns 2,591,510 shares of the semiconductor company's stock worth $875,802,000 after purchasing an additional 274,389 shares during the period. Bessemer Group Inc. lifted its position in Taiwan Semiconductor Manufacturing by 7.9% during the first quarter. Bessemer Group Inc. now owns 1,781,764 shares of the semiconductor company's stock worth $602,147,000 after purchasing an additional 130,602 shares during the period. Assenagon Asset Management S.A. grew its stake in Taiwan Semiconductor Manufacturing by 67.2% during the third quarter. Assenagon Asset Management S.A. now owns 1,717,515 shares of the semiconductor company's stock worth $783,513,000 after buying an additional 690,523 shares in the last quarter. Finally, AMF Tjanstepension AB grew its stake in Taiwan Semiconductor Manufacturing by 6.4% during the first quarter. AMF Tjanstepension AB now owns 1,632,738 shares of the semiconductor company's stock worth $551,784,000 after buying an additional 98,123 shares in the last quarter. 16.51% of the stock is currently owned by institutional investors and hedge funds.

Taiwan Semiconductor Manufacturing Stock Performance

NYSE:TSM opened at $352.19 on Friday. The stock's 50-day simple moving average is $432.74 and its 200 day simple moving average is $400.53. The firm has a market capitalization of $1.83 trillion, a PE ratio of 25.47, a price-to-earnings-growth ratio of 0.80 and a beta of 1.44. The company has a quick ratio of 2.25, a current ratio of 2.46 and a debt-to-equity ratio of 0.14. Taiwan Semiconductor Manufacturing Company Ltd. has a twelve month low of $266.82 and a twelve month high of $487.47.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last issued its earnings results on Thursday, October 15th. The semiconductor company reported $4.60 EPS for the quarter, topping the consensus estimate of $4.45 by $0.15. The firm had revenue of $46.72 billion during the quarter, compared to the consensus estimate of $45.67 billion. Taiwan Semiconductor Manufacturing had a return on equity of 42.84% and a net margin of 51.51%. The business's quarterly revenue was up 41.2% on a year-over-year basis. During the same quarter in the previous year, the firm earned $2.92 earnings per share. On average, analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 17.07 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, January 7th. Investors of record on Thursday, December 10th will be given 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 yield of 1.2%. This is a negative change from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $1.1136. Taiwan Semiconductor Manufacturing's dividend payout ratio is currently 22.27%.

Insider Transactions at Taiwan Semiconductor Manufacturing

In related news, VP Lipen Yuan acquired 1,000 shares of the company's stock in a transaction that occurred on Tuesday, August 18th. The stock was acquired at an average price of $74.50 per share, with a total value of $74,500.00. Following the purchase, the vice president directly owned 6,000 shares in the company, valued at approximately $447,000. This trade represents a 20.00% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. In the last ninety days, insiders have purchased 5,428 shares of company stock worth $411,021. 1.11% of the stock is owned by corporate insiders.

Analyst Ratings Changes

Several equities analysts have commented on TSM shares. Sanford C. Bernstein raised their target price on shares of Taiwan Semiconductor Manufacturing from $554.00 to $600.00 and gave the company an "outperform" rating in a report on Wednesday. Susquehanna upped their price target on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the stock a "positive" rating in a report on Thursday, July 16th. Citigroup reiterated a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research report on Wednesday, October 7th. Stifel Nicolaus started coverage on shares of Taiwan Semiconductor Manufacturing in a research report on Tuesday, September 1st. They set a "buy" rating and a $515.00 price target on the stock. Finally, DA Davidson reissued a "buy" rating and issued a $500.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, October 16th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, Taiwan Semiconductor Manufacturing currently has a consensus rating of "Buy" and a consensus target price of $533.89.

Taiwan Semiconductor Manufacturing News Roundup

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

• Positive Sentiment: Bernstein raised its price target to $600 and reiterated an “outperform” rating, signaling confidence in TSMC’s outlook. Article: Bernstein price target
• Positive Sentiment: ETFs purchased $146.2 million of TSM shares on Nov. 3, a potential counterpoint to recent market selling. Article: TSM sees ETF buying
• Positive Sentiment: Coverage highlights TSMC’s position as a manufacturer for multiple AI-chip designers, giving it exposure to sector growth without depending on one chipmaker. The company has also recently posted a third consecutive earnings beat, while AI-chip demand reportedly continues to outstrip supply. Article: AMD vs. TSMC and the AI sell-off
• Neutral Sentiment: Investors are awaiting TSMC’s next monthly sales reading, due Nov. 10, to gauge whether demand can sustain the growth implied by the company’s recent results. Article: TSMC sales data and quarterly hurdle
• Negative Sentiment: The main near-term drag appears to be sector-wide risk aversion: semiconductor shares sold off sharply as investors reassessed AI spending, growth expectations, and valuations. That selling has weighed on TSMC despite positive demand indicators; September global chip-sales data cited in coverage showed strong year-over-year growth. Article: Global chip sales and semiconductor sell-off

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company Limited NYSE: TSM, commonly known as TSMC, is a dedicated semiconductor foundry headquartered in Hsinchu, Taiwan. The company manufactures integrated circuits for customers that design their own chips, allowing semiconductor, electronics, and technology companies to outsource production rather than operate their own fabrication facilities.

TSMC provides wafer fabrication services across a broad range of process technologies, including advanced nodes used in high-performance computing, smartphones, automotive systems, and artificial intelligence applications.

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