Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 1.2% - Here's Why

Key Points

• Taiwan Semiconductor Manufacturing Company (TSM) shares fell by 1.2% during trading, with approximately 10.4 million shares traded, a significant decline from the average volume.
• Recent analyst reports have generally been positive, with Barclays raising their target price to $325, indicating a bullish outlook for TSM, while the average target price across analysts sits at $286.67.
• The company declared a quarterly dividend of $0.8348, an increase from the previous quarter's $0.65, representing an annual yield of 1.2%.

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) were down 1.2% during trading on Friday . The stock traded as low as $270.62 and last traded at $273.41. Approximately 10,430,318 shares were traded during mid-day trading, a decline of 28% from the average daily volume of 14,587,710 shares. The stock had previously closed at $276.66.

Analyst Ratings Changes

TSM has been the subject of a number of recent analyst reports. Barclays increased their target price on shares of Taiwan Semiconductor Manufacturing from $275.00 to $325.00 and gave the company an "overweight" rating in a research report on Tuesday, September 16th. Susquehanna lifted 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 note on Monday, July 14th. Wall Street Zen raised shares of Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a research report on Sunday, August 31st. Finally, Needham & Company LLC reiterated a "buy" rating and set a $270.00 price target on shares of Taiwan Semiconductor Manufacturing in a report on Thursday, July 17th. Four analysts have rated the stock with a Buy rating, According to MarketBeat.com, the company currently has an average rating of "Buy" and an average target price of $286.67.

Taiwan Semiconductor Manufacturing Stock Down 1.2%

The company has a current ratio of 2.37, a quick ratio of 2.15 and a debt-to-equity ratio of 0.20. The stock's 50-day moving average price is $245.24 and its 200-day moving average price is $208.53. The company has a market cap of $1.42 trillion, a P/E ratio of 31.18, a PEG ratio of 1.33 and a beta of 1.23.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last issued its 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 business had revenue of $30.07 billion during the quarter, compared to analyst estimates of $28.50 billion. Taiwan Semiconductor Manufacturing had a return on equity of 33.37% and a net margin of 42.91%.The firm's revenue was up 44.4% compared to the same quarter last year. During the same period in the previous year, the company posted $1.48 EPS. Taiwan Semiconductor Manufacturing has set its Q3 2025 guidance at EPS. As a group, research analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current 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 $0.8348 dividend. This represents a $3.34 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend is Thursday, December 11th. This is an increase from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.65. Taiwan Semiconductor Manufacturing's payout ratio is 29.42%.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Caldwell Trust Co bought a new position in shares of Taiwan Semiconductor Manufacturing in the second quarter valued at approximately $4,519,000. Watts Gwilliam & Co. LLC bought a new position in Taiwan Semiconductor Manufacturing during the 2nd quarter valued at $250,000. Valeo Financial Advisors LLC boosted its holdings in Taiwan Semiconductor Manufacturing by 4.9% during the 2nd quarter. Valeo Financial Advisors LLC now owns 30,577 shares of the semiconductor company's stock worth $6,925,000 after acquiring an additional 1,433 shares during the last quarter. Silicon Valley Capital Partners grew its stake in shares of Taiwan Semiconductor Manufacturing by 102.7% in the 2nd quarter. Silicon Valley Capital Partners now owns 2,971 shares of the semiconductor company's stock worth $673,000 after acquiring an additional 1,505 shares in the last quarter. Finally, L1 Capital Pty Ltd purchased a new stake in shares of Taiwan Semiconductor Manufacturing in the second quarter valued at about $2,894,000. 16.51% of the stock is owned by 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.

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.