Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Crosses Below 200 Day Moving Average - Time to Sell?

Key Points

• TSMC shares fell below their 200-day moving average of $402.49, trading as low as $391.50 and last quoted at about $399.50.
• Recent business results were strong: quarterly revenue rose 41.2% year over year and earnings beat estimates, while October revenue reached a record NT$586.89 billion, up 59.7% year over year.
• Analysts maintained a broadly positive outlook, with a consensus “Buy” rating and an average price target of $533.89. TSMC also raised its quarterly dividend by about 41% to $1.3663 per share.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) shares crossed below its two hundred day moving average during trading on Friday. The stock has a two hundred day moving average of $402.49 and traded as low as $391.50. Taiwan Semiconductor Manufacturing shares last traded at $399.5020, with a volume of 10,704,547 shares.

Taiwan Semiconductor Manufacturing News Summary

These are some of the TSM news items that stood out recently:

• Positive Sentiment: TSMC reported record October revenue of NT$586.89 billion, up 59.7% year over year. The strong growth points to continued demand for AI chips and supports expectations that the company’s capacity investments can sustain expansion. Article: TSMC Just Booked a Record NT$587 Billion Month
• Positive Sentiment: The company announced an approximately 41% year-over-year increase in its quarterly dividend to about $1.37 per ADS, a positive signal for shareholder returns, though the higher payout is not expected to be reflected immediately in distributions. TSMC dividend information
• Neutral Sentiment: NVIDIA’s leadership shake-up is adding uncertainty across chip stocks. TSMC may benefit from serving multiple chip designers, but tighter export controls could create broader industry headwinds. NVIDIA’s November 17 earnings report is a near-term test of AI-chip demand. Article: Checkmate for AI Chips? NVIDIA’s Crisis Opens the Board

Analysts Set New Price Targets

A number of equities research analysts recently commented on the company. Barclays lifted their price objective on Taiwan Semiconductor Manufacturing from $665.00 to $670.00 and gave the stock an "overweight" rating in a research note on Friday, October 16th. Stifel Nicolaus initiated coverage on Taiwan Semiconductor Manufacturing in a research report on Tuesday, September 1st. They issued a "buy" rating and a $515.00 target price on the stock. Wall Street Zen downgraded shares of Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 8th. Citigroup reaffirmed a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday, October 7th. Finally, Sanford C. Bernstein boosted their price objective on Taiwan Semiconductor Manufacturing from $554.00 to $600.00 and gave the company an "outperform" rating in a research note on Wednesday, November 4th. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Buy" and a consensus price target of $533.89.

Taiwan Semiconductor Manufacturing Stock Down 1.5%

The stock has a market capitalization of $2.07 trillion, a P/E ratio of 25.71, a P/E/G ratio of 0.81 and a beta of 1.44. 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's 50-day moving average price is $430.12 and its two-hundred day moving average price is $402.49.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last posted its earnings results on Thursday, October 15th. The semiconductor company reported $4.60 earnings per share (EPS) for the quarter, topping the consensus estimate 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 firm had revenue of $46.72 billion for the quarter, compared to the consensus estimate of $45.67 billion. During the same quarter in the prior year, the business 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 expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 17.36 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, April 8th. Shareholders of record on Thursday, March 11th will be issued a $1.3663 dividend. This is an increase from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $1.0854. The ex-dividend date is Thursday, March 11th. This represents a $5.47 annualized dividend and a yield of 1.4%. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is 22.27%.

Insider Activity at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, Director Michael R. Splinter bought 840 shares of Taiwan Semiconductor Manufacturing stock in a transaction dated Thursday, November 5th. The shares were purchased at an average cost of $357.00 per share, with a total value of $299,880.00. Following the transaction, the director directly owned 8,405 shares of the company's stock, valued at $3,000,585. This represents a 11.10% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Lipen Yuan purchased 1,000 shares of the company's stock in a transaction dated Sunday, November 1st. The stock was bought at an average cost of $71.49 per share, for a total transaction of $71,490.00. Following the completion of the transaction, the vice president owned 8,000 shares in the company, valued at approximately $571,920. This represents a 14.29% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders bought a total of 7,869 shares of company stock valued at $823,771 in the last three months. Corporate insiders own 1.11% of the company's stock.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Several large investors have recently modified their holdings of the stock. Fisher Asset Management LLC lifted its stake in shares of Taiwan Semiconductor Manufacturing by 0.4% in the third quarter. Fisher Asset Management LLC now owns 18,932,587 shares of the semiconductor company's stock worth $8,636,858,000 after buying an additional 66,389 shares in the last quarter. Tiger Global Management LLC boosted its stake in shares of Taiwan Semiconductor Manufacturing by 49.4% in the 1st quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company's stock worth $1,880,717,000 after buying an additional 1,839,600 shares during the last quarter. Russell Investments Group Ltd. grew its stake in shares of Taiwan Semiconductor Manufacturing by 12.5% during the 3rd quarter. Russell Investments Group Ltd. now owns 4,057,858 shares of the semiconductor company's stock valued at $1,851,187,000 after purchasing an additional 451,966 shares during the period. Sei Investments Co. grew its position in Taiwan Semiconductor Manufacturing by 11.8% during the first quarter. Sei Investments Co. now owns 2,591,510 shares of the semiconductor company's stock valued at $875,802,000 after buying an additional 274,389 shares during the period. Finally, Bessemer Group Inc. increased its stake in shares of Taiwan Semiconductor Manufacturing by 7.9% in the 1st quarter. Bessemer Group Inc. now owns 1,781,764 shares of the semiconductor company's stock worth $602,147,000 after purchasing an additional 130,602 shares in 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 (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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