Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Up 1.6% After Insider Buying Activity

Key Points

• TSMC shares rose 1.6% in Tuesday’s trading after VP Lipen Yuan disclosed buying 1,000 shares, increasing his reported stake by 14.29%.
• Analyst sentiment is broadly positive: MarketBeat reports a consensus Buy rating and an average price target of $528.78.
• TSMC beat quarterly earnings and revenue estimates, with revenue up 41.2% year over year; it also announced a lower quarterly dividend of $1.0854 per share, down from $1.1136.

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) traded up 1.6% during mid-day trading on Tuesday following insider buying activity. The stock traded as high as $408.37 and last traded at $404.8980. 9,222,186 shares were traded during mid-day trading, a decline of 29% from the average session volume of 13,016,892 shares. The stock had previously closed at $398.63.

Specifically, VP Lipen Yuan purchased 1,000 shares of the firm's stock in a transaction that occurred on Sunday, November 1st. The stock was acquired at an average price of $71.49 per share, for a total transaction of $71,490.00. Following the completion of the acquisition, the vice president 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 document filed with the Securities & Exchange Commission, which can be accessed through the SEC website.

Analyst Ratings Changes

Several equities analysts have weighed in on TSM shares. Stifel Nicolaus began coverage on Taiwan Semiconductor Manufacturing in a research note on Tuesday, September 1st. They set a "buy" rating and a $515.00 price objective on the stock. Weiss Ratings upgraded shares of Taiwan Semiconductor Manufacturing from a "hold (c+)" rating to a "buy (b)" rating in a research note on Wednesday, October 21st. Wall Street Zen lowered shares of Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 8th. DA Davidson reiterated a "buy" rating and issued a $500.00 target price on shares of Taiwan Semiconductor Manufacturing in a report on Friday, October 16th. Finally, TD Cowen raised their price target on shares of Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the company a "hold" rating in a research report on Friday, July 17th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of "Buy" and an average target price of $528.78.

Trending Headlines about Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: A commentary favoring TSM over Broadcom argues that TSMC manufactures chips for Nvidia, AMD, Apple and Broadcom, giving it exposure to multiple potential AI winners rather than relying on custom-chip customers continuing to build their own processors. Article: Taiwan Semi or Broadcom: If I Could Only Own 1 for the Next 5 Years, It Would Be This
• Positive Sentiment: Other bullish coverage highlights TSMC as an essential supplier to competing AI chip designers and points to its advanced-chip capabilities and manufacturing scale as long-term strengths. These arguments reinforce the view that continued AI infrastructure investment could support demand for TSMC’s services. Article: Until Next Gen Computing Implodes I'll Keep Buying Taiwan Semiconductor Article: Top Wide-Moat Stocks to Buy for Steady Long-Term Returns
• Positive Sentiment: Vice President Lipen Yuan disclosed buying 1,000 shares, increasing his reported stake by 14.29%. The insider purchase may be viewed as a modest confidence signal, though its size alone does not establish a broader trend. Article: Taiwan Semiconductor Manufacturing Company Ltd. insider transaction
• Neutral Sentiment: Reports say Elon Musk may soften his stance on control of the proposed Terafab venture in discussions involving TSMC. A larger role could create an opportunity, but talks remain uncertain and no deal is confirmed. Article: Musk may soften Terafab control stance in fresh TSMC talks
• Negative Sentiment: A report says hedge funds have turned underweight AI stocks amid a sharp sector-wide sell-off. That risk-off shift could weigh on TSM sentiment even though the article does not identify a TSM-specific deterioration. Article: AI Stocks Lose $5 Trillion in 3 Weeks as Hedge Funds Go Underweight AI for the First Time Since 2023

Taiwan Semiconductor Manufacturing Trading Up 1.6%

The firm has a 50-day moving average price of $434.60 and a 200-day moving average price of $399.83. The company has a current ratio of 2.46, a quick ratio of 2.25 and a debt-to-equity ratio of 0.14. The stock has a market capitalization of $2.10 trillion, a PE ratio of 26.06, a price-to-earnings-growth ratio of 0.89 and a beta of 1.37.

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

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, January 7th. Investors of record on Thursday, December 10th will be paid a $1.0854 dividend. The ex-dividend date is Thursday, December 10th. This represents a $4.34 dividend on an annualized basis and a yield of 1.1%. This is a decrease from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $1.1136. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is presently 22.27%.

Institutional Trading of Taiwan Semiconductor Manufacturing

Several hedge funds and other institutional investors have recently modified their holdings of the business. Fiduciary Advisors Inc. lifted its holdings in Taiwan Semiconductor Manufacturing by 200.0% during the 3rd quarter. Fiduciary Advisors Inc. now owns 60 shares of the semiconductor company's stock worth $27,000 after purchasing an additional 40 shares in the last quarter. Cedar Mountain Advisors LLC raised its position in shares of Taiwan Semiconductor Manufacturing by 88.2% during the 2nd quarter. Cedar Mountain Advisors LLC now owns 64 shares of the semiconductor company's stock valued at $31,000 after buying an additional 30 shares in the last quarter. Financial Freedom LLC purchased a new stake in Taiwan Semiconductor Manufacturing during the first quarter valued at about $32,000. Markowski Investments bought a new stake in Taiwan Semiconductor Manufacturing during the second quarter worth about $33,000. Finally, Heritage Family Offices LLP purchased a new position in shares of Taiwan Semiconductor Manufacturing in the 3rd quarter worth about $37,000. Institutional investors own 16.51% of the company's stock.

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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