Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Climb 3.6% on Insider Buying Activity

Key Points

• TSMC shares rose 3.6% to about $388.95 in Monday midday trading, with volume 17% above its daily average.
• Director Michael R. Splinter bought 840 shares for about $299,880, increasing his stake by 11.1%; Vice President Lipen Yuan also reported a share purchase.
• Analyst sentiment was broadly positive: the stock carried an average “Buy” rating and a $533.89 average price target. In its latest reported quarter, TSMC beat earnings and revenue estimates, with revenue up 41.2% year over year.

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) traded up 3.6% during mid-day trading on Monday after an insider bought additional shares in the company. The company traded as high as $394.39 and last traded at $388.9520. Approximately 15,543,937 shares were traded during mid-day trading, an increase of 17% from the average daily volume of 13,232,762 shares. The stock had previously closed at $375.44.

Specifically, Director Michael R. Splinter acquired 840 shares of the business's stock in a transaction that occurred on Thursday, November 5th. The shares were bought at an average cost of $357.00 per share, with a total value of $299,880.00. Following the completion of the acquisition, the director directly owned 8,405 shares in the company, valued at $3,000,585. This represents a 11.10% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Lipen Yuan acquired 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction that occurred on Sunday, November 1st. The stock was acquired at an average cost of $71.49 per share, with a total value of $71,490.00. Following the purchase, 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 ownership of the stock. The disclosure for this purchase is available in the SEC filing.

Analyst Upgrades and Downgrades

Several analysts have issued reports on TSM shares. Susquehanna increased their target price on Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a "positive" rating in a research report on Thursday, July 16th. TD Cowen boosted their price target on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the stock a "hold" rating in a research report on Friday, July 17th. Wall Street Zen cut Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 8th. Sanford C. Bernstein upped their price objective on Taiwan Semiconductor Manufacturing from $554.00 to $600.00 and gave the stock an "outperform" rating in a research note on Wednesday, November 4th. Finally, DA Davidson reaffirmed a "buy" rating and set a $500.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research report on Friday, October 16th. Three analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Buy" and an average price target of $533.89.

Taiwan Semiconductor Manufacturing News Roundup

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

• Positive Sentiment: Taiwan tightened short-selling limits and authorized a NT$500 billion market-stabilization fund. The measures helped lift local equities and chip stocks, supporting TSM shares after the market’s recent selloff. TSMC Stocks Rise as Taiwan Curbs Short Selling, Deploys Stabilization Fund
• Positive Sentiment: A company director bought 840 TSM shares for about $300,000, increasing his personal stake by 11.1%. Insider buying can be read as a vote of confidence, though one transaction is not conclusive. SEC insider transaction filing
• Positive Sentiment: Reports that 11 ETFs added TSM shares on Thursday point to investment demand, though the article provides no details on the scale of those purchases. 11 ETFs Add to Taiwan Semiconductor
• Neutral Sentiment: Coverage is mixed on whether TSM might eventually make advanced memory for Nvidia: one report suggests a possible move, while another says the company remains focused on logic chips. The speculation could create interest, but no confirmed change in strategy is provided. Report on possible advanced memory production
• Neutral Sentiment: Asian chip shares rebounded despite controversy surrounding Nvidia CEO Jensen Huang, suggesting the sector’s recovery may be supporting TSM while uncertainty in the AI-chip group remains a potential source of volatility. Asian chip stocks rise amid Nvidia CEO controversy

Taiwan Semiconductor Manufacturing Trading Up 3.6%

The company's 50 day simple moving average is $431.68 and its two-hundred day simple moving average is $400.77. The company has a quick ratio of 2.25, a current ratio of 2.46 and a debt-to-equity ratio of 0.14. The company has a market capitalization of $2.02 trillion, a price-to-earnings ratio of 25.03, a P/E/G ratio of 0.76 and a beta of 1.44.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last issued its quarterly earnings results on Thursday, October 15th. The semiconductor company reported $4.60 earnings per share (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 the consensus estimate of $45.67 billion. During the same period in the prior year, the firm posted $2.92 earnings per share. The business's quarterly revenue was up 41.2% on a year-over-year basis. As a group, research analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 17.07 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The firm also recently declared 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 drop from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $1.1136. This represents a $4.34 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend is Thursday, December 10th. Taiwan Semiconductor Manufacturing's dividend payout ratio is 22.27%.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

A number of large investors have recently modified their holdings of the business. Cooper Financial Group lifted its position in 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 during the period. Dickmeyer Boyce Financial Management Inc. raised its stake in shares of Taiwan Semiconductor Manufacturing by 0.7% in the third quarter. Dickmeyer Boyce Financial Management Inc. now owns 3,459 shares of the semiconductor company's stock worth $1,578,000 after purchasing an additional 23 shares during the last quarter. Whelan Financial raised its stake in shares of Taiwan Semiconductor Manufacturing by 2.3% in the third quarter. Whelan Financial now owns 1,040 shares of the semiconductor company's stock worth $474,000 after purchasing an additional 23 shares during the last quarter. Plan A Wealth LLC raised its stake in shares of Taiwan Semiconductor Manufacturing by 0.9% in the third quarter. Plan A Wealth LLC now owns 2,735 shares of the semiconductor company's stock worth $1,248,000 after purchasing an additional 24 shares during the last quarter. Finally, Graves Light Lenhart Wealth Inc. lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 3.4% during the second quarter. Graves Light Lenhart Wealth Inc. now owns 752 shares of the semiconductor company's stock worth $359,000 after purchasing an additional 25 shares during the period. Hedge funds and other institutional investors own 16.51% of the company's stock.

About Taiwan Semiconductor Manufacturing

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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