Insider Buying: Taiwan Semiconductor Manufacturing (NYSE:TSM) CEO Purchases 144 Shares of Company Stock

Key Points

• TSMC CEO Che-Chia Wei bought 144 shares at an average price of $79.39, worth $11,432.16, increasing his direct ownership by 0.79% to 18,280 shares. He also made similar purchases in September and August.
• TSMC reported strong operating results, including $4.28 quarterly EPS and $39.89 billion in revenue, while analysts maintain a consensus “Buy” rating with a $524.89 price target.
• The company reduced its quarterly dividend to $1.0854, equivalent to a 0.9% annualized yield and a 24.96% payout ratio.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) CEO Che-Chia Wei acquired 144 shares of the firm's stock in a transaction that occurred on Wednesday, October 7th. The stock was bought at an average price of $79.39 per share, with a total value of $11,432.16. Following the completion of the acquisition, the chief executive officer directly owned 18,280 shares of the company's stock, valued at $1,451,249.20. This trade represents a 0.79% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is available through this hyperlink.

Che-Chia Wei also recently made the following trade(s):

• On Monday, September 7th, Che-Chia Wei acquired 149 shares of Taiwan Semiconductor Manufacturing stock. The stock was bought at an average cost of $76.20 per share, for a total transaction of $11,353.80.
• On Friday, August 7th, Che-Chia Wei purchased 152 shares of Taiwan Semiconductor Manufacturing stock. The stock was purchased at an average price of $73.31 per share, for a total transaction of $11,143.12.

Taiwan Semiconductor Manufacturing Stock Performance

Shares of TSM opened at $472.64 on Thursday. The firm's fifty day simple moving average is $431.08 and its two-hundred day simple moving average is $412.62. Taiwan Semiconductor Manufacturing Company Ltd. has a 12 month low of $266.82 and a 12 month high of $487.47. The stock has a market capitalization of $2.45 trillion, a P/E ratio of 34.10, a price-to-earnings-growth ratio of 1.07 and a beta of 1.37. The company has a current ratio of 2.46, a quick ratio of 2.25 and a debt-to-equity ratio of 0.14.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last issued its quarterly earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share (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%. As a group, analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.56 EPS for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, January 7th. Shareholders of record on Thursday, December 10th will be paid a $1.0854 dividend. This represents a $4.34 dividend on an annualized basis and a dividend yield of 0.9%. This is a negative change from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $1.1136. The ex-dividend date of this dividend is Thursday, December 10th. Taiwan Semiconductor Manufacturing's payout ratio is 24.96%.

Analyst Ratings Changes

Several brokerages have recently commented on TSM. Zacks Research upgraded shares of Taiwan Semiconductor Manufacturing from a "hold" rating to a "strong-buy" rating in a report on Thursday, July 16th. DA Davidson raised their price target on shares of Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the stock a "buy" rating in a research note on Friday, July 17th. Sanford C. Bernstein lifted their price target on shares of Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the stock an "outperform" rating in a report on Tuesday, August 11th. Wall Street Zen downgraded Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 8th. Finally, Stifel Nicolaus began coverage on Taiwan Semiconductor Manufacturing in a report on Tuesday, September 1st. They set a "buy" rating and a $515.00 price objective for the company. Three investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Buy" and a consensus price target of $524.89.

Key Stories Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Record quarterly sales beat expectations. TSMC reported third-quarter revenue of approximately NT$1.49 trillion ($46.7 billion), up 50% year over year and above the roughly NT$1.46 trillion consensus estimate. The result reinforces expectations that demand for advanced processors from Nvidia, AMD and other AI customers remains exceptionally strong. TSMC's third-quarter revenue surges to record, beating market forecast
• Positive Sentiment: September revenue set another record. Monthly revenue rose 54.6% from a year earlier to NT$511.86 billion, extending TSMC’s record-sales streak and providing a favorable lead-in to its upcoming earnings outlook. TSMC September sales hit another record as AI boom rolls on
• Positive Sentiment: Broad insider buying adds a confidence signal. The CEO, CFO, COOs, VPs and senior vice presidents collectively purchased more than 1,400 shares in disclosed transactions on October 7, including a 144-share purchase by CEO Che-Chia Wei. The purchases are modest relative to TSMC’s market value but indicate continued internal confidence. SEC insider transaction filing
• Neutral Sentiment: Investors are awaiting management’s detailed outlook. TSMC is expected to provide guidance on margins, capital spending, advanced-node production and AI demand at its October 15 earnings release. With TSM trading near its 52-week high and at a premium valuation, the forecast may matter more than the sales beat.
• Negative Sentiment: Musk ruled out TSMC operating his Terafab facility. TSMC may still potentially sublease space or contribute expertise, but Tesla and SpaceX plan to build and operate the Texas project themselves. This reduces the immediate strategic upside from a direct TSMC role. Elon Musk Rules Out Potential TSMC Role in Terafab Operations

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Institutional investors and hedge funds have recently made changes to their positions in the business. City Center Advisors LLC boosted its position in shares of Taiwan Semiconductor Manufacturing by 24.1% during the 3rd quarter. City Center Advisors LLC now owns 566 shares of the semiconductor company's stock valued at $258,000 after acquiring an additional 110 shares during the last quarter. Venture Visionary Partners LLC grew its stake in shares of Taiwan Semiconductor Manufacturing by 34.1% during the third quarter. Venture Visionary Partners LLC now owns 10,775 shares of the semiconductor company's stock valued at $4,915,000 after buying an additional 2,739 shares during the last quarter. Retirement Wealth Solutions LLC grew its position in Taiwan Semiconductor Manufacturing by 2,050.0% during the 3rd quarter. Retirement Wealth Solutions LLC now owns 129 shares of the semiconductor company's stock worth $59,000 after acquiring an additional 123 shares during the last quarter. Cox Capital Mgt LLC increased its stake in shares of Taiwan Semiconductor Manufacturing by 0.4% in the third quarter. Cox Capital Mgt LLC now owns 10,098 shares of the semiconductor company's stock worth $4,607,000 after buying an additional 38 shares during the period. Finally, Cooper Financial Group raised its stake in shares of Taiwan Semiconductor Manufacturing by 0.3% during the third quarter. Cooper Financial Group now owns 6,313 shares of the semiconductor company's stock valued at $2,880,000 after acquiring an additional 22 shares during the last quarter. Hedge funds and other institutional investors own 16.51% of the company's stock.

About Taiwan Semiconductor Manufacturing

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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