Taiwan Semiconductor Manufacturing Company Ltd. $TSM Stock: Sanders Capital LLC Cuts Stake

Key Points

• Sanders Capital cut its TSMC stake by 6.5%, selling about 1.69 million shares in the third quarter. It still held 24.46 million shares worth roughly $11.16 billion, making TSMC its largest portfolio holding.
• TSMC beat quarterly earnings and revenue estimates, reporting $4.60 per share and $46.72 billion in revenue; revenue rose 41.2% year over year.
• The company lowered its quarterly dividend to $1.0854 from $1.1136 per share. Analysts’ consensus rating remained “Buy,” with an average price target of $533.89.

Sanders Capital LLC lessened its holdings in Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) by 6.5% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 24,455,974 shares of the semiconductor company's stock after selling 1,693,090 shares during the period. Taiwan Semiconductor Manufacturing accounts for about 10.9% of Sanders Capital LLC's investment portfolio, making the stock its biggest holding. Sanders Capital LLC owned approximately 0.47% of Taiwan Semiconductor Manufacturing worth $11,156,571,000 as of its most recent SEC filing.

Other large investors have also recently bought and sold shares of the company. Cooper Financial Group boosted its stake in shares of Taiwan Semiconductor Manufacturing by 0.3% during the 3rd quarter. Cooper Financial Group now owns 6,313 shares of the semiconductor company's stock worth $2,880,000 after acquiring an additional 22 shares in the last quarter. Dickmeyer Boyce Financial Management Inc. increased its holdings in shares of Taiwan Semiconductor Manufacturing by 0.7% during the 3rd quarter. Dickmeyer Boyce Financial Management Inc. now owns 3,459 shares of the semiconductor company's stock valued at $1,578,000 after acquiring an additional 23 shares during the last quarter. Whelan Financial raised its stake in shares of Taiwan Semiconductor Manufacturing by 2.3% in the 3rd quarter. Whelan Financial now owns 1,040 shares of the semiconductor company's stock valued at $474,000 after acquiring an additional 23 shares in the last quarter. Plan A Wealth LLC raised its stake in shares of Taiwan Semiconductor Manufacturing by 0.9% in the 3rd quarter. Plan A Wealth LLC now owns 2,735 shares of the semiconductor company's stock valued at $1,248,000 after acquiring an additional 24 shares in the last quarter. Finally, Graves Light Lenhart Wealth Inc. raised its stake in shares of Taiwan Semiconductor Manufacturing by 3.4% in the 2nd quarter. Graves Light Lenhart Wealth Inc. now owns 752 shares of the semiconductor company's stock valued at $359,000 after acquiring an additional 25 shares in the last quarter. 16.51% of the stock is currently owned by institutional investors.

Insider Transactions at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Lipen Yuan bought 1,000 shares of the stock in a transaction on Sunday, November 1st. The shares were purchased at an average price of $71.49 per share, with a total value of $71,490.00. Following the acquisition, the vice president directly owned 8,000 shares of the company's stock, valued at $571,920. This represents a 14.29% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Over the last quarter, insiders purchased 5,428 shares of company stock valued at $411,021. Company insiders own 1.11% of the company's stock.

Taiwan Semiconductor Manufacturing Stock Performance

TSM stock traded up $22.05 during mid-day trading on Friday, reaching $375.15. 23,785,880 shares of the stock traded hands, compared to its average volume of 12,097,490. The firm has a market capitalization of $1.95 trillion, a PE ratio of 24.14, a P/E/G ratio of 0.81 and a beta of 1.44. The business has a 50-day moving average of $431.68 and a two-hundred day moving average of $400.77. Taiwan Semiconductor Manufacturing Company Ltd. has a 52 week low of $266.82 and a 52 week high of $487.47. 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 (NYSE:TSM - Get Free Report) last posted its quarterly earnings data on Thursday, October 15th. The semiconductor company reported $4.60 EPS for the quarter, topping analysts' consensus estimates of $4.45 by $0.15. Taiwan Semiconductor Manufacturing had a return on equity of 42.84% and a net margin of 51.51%. The business had revenue of $46.72 billion for the quarter, compared to analyst estimates of $45.67 billion. During the same period in the previous year, the company posted $2.92 earnings per share. The firm's revenue for the quarter was up 41.2% on a year-over-year basis. As a group, equities analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 17.07 EPS for the current fiscal 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 issued a $1.0854 dividend. This is a decrease from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $1.1136. The ex-dividend date of this dividend is Thursday, December 10th. This represents a $4.34 dividend on an annualized basis and a yield of 1.2%. Taiwan Semiconductor Manufacturing's payout ratio is 22.27%.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on the company. DA Davidson restated a "buy" rating and issued a $500.00 target price on shares of Taiwan Semiconductor Manufacturing in a report on Friday, October 16th. TD Cowen increased their price target on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the company a "hold" rating in a report on Friday, July 17th. Weiss Ratings lowered shares of Taiwan Semiconductor Manufacturing from a "buy (b)" rating to a "hold (c+)" rating in a research report on Wednesday. Susquehanna lifted their price target on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a "positive" rating in a research report on Thursday, July 16th. Finally, Citigroup restated a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday, October 7th. Three research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Buy" and a consensus target price of $533.89.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Taiwan tightened short-selling rules and prepared a reported $15 billion fund to support its markets, helping lift TSMC shares in premarket trading after the regional chip rout. Benzinga article
• Positive Sentiment: Nvidia reportedly wants TSMC to make advanced memory chips. If TSMC pursues the opportunity, it could broaden its role in AI hardware and deepen ties with a major customer; the report describes a possibility, not a confirmed project. TipRanks article
• Positive Sentiment: Sanford C. Bernstein raised its price target to $600 from $554 and reiterated an “outperform” rating, signaling confidence in TSMC’s prospects despite the recent sector weakness. MarketBeat analyst update
• Neutral Sentiment: TSMC’s position as a leading manufacturer for Nvidia, AMD and other chip designers supports exposure to AI demand across competing customers. Some coverage also argues the shares trade below their usual valuation range, though that does not ensure a near-term recovery. The Motley Fool article
• Negative Sentiment: The rebound follows a steep regional chip-stock selloff amid worries about AI valuations, spending expectations and growth. That market-wide pressure could keep TSM volatile even as its manufacturing business benefits from AI demand. 24/7 Wall St. article

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company (TSMC) is a semiconductor foundry that manufactures chips designed by other companies. It provides wafer fabrication and related services, including advanced packaging, serving customers across industries such as computing, communications, automotive and consumer electronics.

Founded in 1987 and headquartered in Hsinchu, Taiwan, TSMC helped establish the dedicated foundry model, in which a manufacturer focuses on producing semiconductors for customers rather than selling its own chip designs.

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