Taiwan Semiconductor Manufacturing (NYSE:TSM) Hits New 12-Month High - Still a Buy?

Key Points

• Taiwan Semiconductor Manufacturing Company's stock price recently reached a new 52-week high of $287.64, with a significant trading volume of 5.35 million shares.
• Multiple analysts have rated TSM as a Buy, with price targets ranging from $265 to $325, indicating strong confidence in the company's performance.
• The company announced an increase in its quarterly dividend to $0.8348 per share, reflecting positive growth with a year-over-year revenue increase of 44.4%.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $287.16 and last traded at $287.64, with a volume of 5356398 shares. The stock had previously closed at $279.29.

Wall Street Analyst Weigh In

Several research analysts have issued reports on TSM shares. Susquehanna increased their price target on Taiwan Semiconductor Manufacturing from $255.00 to $265.00 and gave the stock a "positive" rating in a report on Monday, July 14th. Wall Street Zen upgraded Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a report on Sunday, August 31st. Needham & Company LLC reissued a "buy" rating and issued a $270.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research note on Thursday, July 17th. Finally, Barclays increased their price objective on Taiwan Semiconductor Manufacturing from $275.00 to $325.00 and gave the stock an "overweight" rating in a research note on Tuesday, September 16th. Four research analysts have rated the stock with a Buy rating, Based on data from MarketBeat, Taiwan Semiconductor Manufacturing has a consensus rating of "Buy" and an average target price of $286.67.

Taiwan Semiconductor Manufacturing Trading Up 2.9%

The company has a quick ratio of 2.15, a current ratio of 2.37 and a debt-to-equity ratio of 0.20. The stock has a market capitalization of $1.49 trillion, a PE ratio of 32.83, a P/E/G ratio of 1.30 and a beta of 1.23. The firm has a 50 day moving average price of $247.50 and a 200 day moving average price of $210.90.

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

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, January 8th. Investors of record on Thursday, December 11th will be given a dividend of $0.8348 per share. The ex-dividend date of this dividend is Thursday, December 11th. This is a positive change from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.65. This represents a $3.34 dividend on an annualized basis and a dividend yield of 1.2%. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is 29.99%.

Institutional Trading of Taiwan Semiconductor Manufacturing

Institutional investors and hedge funds have recently modified their holdings of the business. DekaBank Deutsche Girozentrale increased its position in Taiwan Semiconductor Manufacturing by 0.9% in the first quarter. DekaBank Deutsche Girozentrale now owns 1,339,479 shares of the semiconductor company's stock worth $214,442,000 after buying an additional 11,693 shares during the last quarter. Quantbot Technologies LP raised its stake in shares of Taiwan Semiconductor Manufacturing by 452.2% in the first quarter. Quantbot Technologies LP now owns 47,425 shares of the semiconductor company's stock valued at $7,873,000 after buying an additional 38,837 shares during the period. RFG Holdings Inc. raised its stake in shares of Taiwan Semiconductor Manufacturing by 66.1% in the second quarter. RFG Holdings Inc. now owns 3,898 shares of the semiconductor company's stock valued at $883,000 after buying an additional 1,551 shares during the period. Duquesne Family Office LLC raised its stake in Taiwan Semiconductor Manufacturing by 456.9% in the 1st quarter. Duquesne Family Office LLC now owns 598,780 shares of the semiconductor company's stock valued at $99,397,000 after acquiring an additional 491,265 shares during the period. Finally, Sentry LLC purchased a new stake in Taiwan Semiconductor Manufacturing during the first quarter valued at about $222,000. 16.51% of the stock is owned by hedge funds and other institutional investors.

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.

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