Investors Buy Large Volume of Taiwan Semiconductor Manufacturing Call Options (NYSE:TSM)

Key Points

• Taiwan Semiconductor Manufacturing Company saw a significant increase in call options trading, with investors purchasing 175,290 call options, marking a 46% rise in activity compared to typical daily volumes.
• Analysts have mixed ratings for the stock, with four firms endorsing a "buy" rating and an average price target set at $258.33, while one firm downgraded it to "hold."
• The company recently declared a quarterly dividend of $0.8348 per share, up from the previous $0.65, indicating a 1.4% dividend yield for investors.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) was the target of unusually large options trading activity on Friday. Stock traders bought 175,290 call options on the stock. Thisrepresentsanincreaseof46% compared to the typical daily volume of 120,213 call options.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on the stock. Barclays reaffirmed an "overweight" rating and set a $240.00 price objective (up previously from $215.00) on shares of Taiwan Semiconductor Manufacturing in a research note on Tuesday, June 3rd. Susquehanna increased their target price on shares of Taiwan Semiconductor Manufacturing from $255.00 to $265.00 and gave the stock a "positive" rating in a research report on Monday, July 14th. Needham & Company LLC restated a "buy" rating and issued a $270.00 price target on shares of Taiwan Semiconductor Manufacturing in a report on Thursday, July 17th. Wall Street Zen cut Taiwan Semiconductor Manufacturing from a "buy" rating to a "hold" rating in a research note on Saturday, August 23rd. Finally, Citigroup reiterated a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research note on Thursday, May 22nd. Four equities research analysts have rated the stock with a Buy rating, According to MarketBeat, Taiwan Semiconductor Manufacturing presently has a consensus rating of "Buy" and an average price target of $258.33.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

A number of hedge funds and other institutional investors have recently made changes to their positions in TSM. City Holding Co. raised its stake in shares of Taiwan Semiconductor Manufacturing by 238.0% in the 1st quarter. City Holding Co. now owns 169 shares of the semiconductor company's stock valued at $28,000 after acquiring an additional 119 shares in the last quarter. 1248 Management LLC bought a new stake in shares of Taiwan Semiconductor Manufacturing during the first quarter valued at approximately $28,000. Accredited Wealth Management LLC bought a new stake in shares of Taiwan Semiconductor Manufacturing during the fourth quarter valued at approximately $31,000. Signature Resources Capital Management LLC increased its position in shares of Taiwan Semiconductor Manufacturing by 138.8% during the first quarter. Signature Resources Capital Management LLC now owns 191 shares of the semiconductor company's stock valued at $32,000 after purchasing an additional 111 shares during the period. Finally, Resources Management Corp CT ADV bought a new stake in Taiwan Semiconductor Manufacturing in the second quarter valued at $32,000. 16.51% of the stock is owned by hedge funds and other institutional investors.

Taiwan Semiconductor Manufacturing Price Performance

TSM stock traded down $7.29 during trading hours on Friday, hitting $230.98. 9,968,577 shares of the stock traded hands, compared to its average volume of 14,809,865. The stock has a 50-day simple moving average of $234.47 and a 200 day simple moving average of $199.68. Taiwan Semiconductor Manufacturing has a one year low of $134.25 and a one year high of $248.28. The company has a market cap of $1.20 trillion, a P/E ratio of 26.34, a P/E/G ratio of 1.14 and a beta of 1.19. The company has a current ratio of 2.37, a quick ratio of 2.15 and a debt-to-equity ratio of 0.20.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last released its quarterly earnings results on Thursday, July 17th. The semiconductor company reported $2.47 earnings per share for the quarter, beating analysts' consensus estimates of $2.13 by $0.34. Taiwan Semiconductor Manufacturing had a return on equity of 33.37% and a net margin of 42.91%.The business had revenue of $30.07 billion during the quarter, compared to analyst estimates of $28.50 billion. During the same quarter last year, the company posted $1.48 EPS. Taiwan Semiconductor Manufacturing's revenue for the quarter was up 44.4% on a year-over-year basis. Taiwan Semiconductor Manufacturing has set its Q3 2025 guidance at EPS. Equities analysts forecast that Taiwan Semiconductor Manufacturing will post 9.2 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, January 8th. Stockholders of record on Thursday, December 11th will be paid a dividend of $0.8348 per share. This is a boost from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.65. The ex-dividend date of this dividend is Thursday, December 11th. This represents a $3.34 dividend on an annualized basis and a dividend yield of 1.4%. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is 28.16%.

About Taiwan Semiconductor Manufacturing

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.