Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 1.3% - Time to Sell?

Key Points

• Taiwan Semiconductor Manufacturing shares fell by 1.3% to $242.37 amid lower trading volume, which was down 71% from average daily volume.
• Analysts maintain a Moderate Buy consensus rating with a price target averaging $258.33, indicating expectations of future growth despite current share price declines.
• The company reported a stronger than expected earnings per share of $2.47, exceeding estimates and showing a 44.4% year-over-year revenue increase to $30.07 billion.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) shares fell 1.3% during trading on Monday . The stock traded as low as $241.05 and last traded at $242.37. 4,558,662 shares changed hands during mid-day trading, a decline of 71% from the average session volume of 15,542,687 shares. The stock had previously closed at $245.60.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the company. Citigroup reaffirmed a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research note on Thursday, May 22nd. Needham & Company LLC reaffirmed a "buy" rating and issued a $270.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research note on Thursday, July 17th. Barclays reissued an "overweight" rating and set a $240.00 price target (up from $215.00) on shares of Taiwan Semiconductor Manufacturing in a research report on Tuesday, June 3rd. Finally, Susquehanna boosted their price target on Taiwan Semiconductor Manufacturing from $255.00 to $265.00 and gave the stock a "positive" rating in a research report on Monday, July 14th. One equities research analyst has rated the stock with a hold rating and four have assigned a buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $258.33.

Taiwan Semiconductor Manufacturing Stock Performance

The stock has a 50-day simple moving average of $220.43 and a 200-day simple moving average of $195.55. The company has a market capitalization of $1.25 trillion, a price-to-earnings ratio of 27.54, a price-to-earnings-growth ratio of 1.17 and a beta of 1.29. The company has a current ratio of 2.37, a quick ratio of 2.18 and a debt-to-equity ratio of 0.18.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last announced its earnings results on Thursday, July 17th. The semiconductor company reported $2.47 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.13 by $0.34. Taiwan Semiconductor Manufacturing had a return on equity of 32.87% and a net margin of 42.91%. The company had revenue of $30.07 billion for the quarter, compared to analyst estimates of $28.50 billion. During the same period in the prior year, the company posted $1.48 EPS. Taiwan Semiconductor Manufacturing's quarterly revenue was up 44.4% on a year-over-year basis. On average, analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 9th. Stockholders of record on Tuesday, September 16th will be issued a $0.6499 dividend. This represents a $2.60 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date is Tuesday, September 16th. Taiwan Semiconductor Manufacturing's payout ratio is 28.16%.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Institutional investors have recently made changes to their positions in the company. City Holding Co. grew its stake in Taiwan Semiconductor Manufacturing by 238.0% during the 1st quarter. City Holding Co. now owns 169 shares of the semiconductor company's stock worth $28,000 after buying an additional 119 shares during the last quarter. 1248 Management LLC bought a new position in Taiwan Semiconductor Manufacturing during the 1st quarter worth $28,000. Accredited Wealth Management LLC bought a new position in Taiwan Semiconductor Manufacturing during the 4th quarter worth $31,000. Signature Resources Capital Management LLC grew its stake in Taiwan Semiconductor Manufacturing by 138.8% during the 1st quarter. Signature Resources Capital Management LLC now owns 191 shares of the semiconductor company's stock worth $32,000 after buying an additional 111 shares during the last quarter. Finally, Graybill Wealth Management LTD. bought a new position in Taiwan Semiconductor Manufacturing during the 1st quarter worth $33,000. 16.51% of the stock is currently owned by institutional investors.

Taiwan Semiconductor Manufacturing Company Profile

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.