Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 1.4% - What's Next?

Key Points

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Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report)'s share price dropped 1.4% on Thursday . The company traded as low as $270.19 and last traded at $276.69. Approximately 11,832,037 shares traded hands during mid-day trading, a decline of 19% from the average daily volume of 14,610,262 shares. The stock had previously closed at $280.71.

Analysts Set New Price Targets

TSM has been the topic of a number of research reports. Susquehanna boosted their target price on shares of Taiwan Semiconductor Manufacturing from $255.00 to $265.00 and gave the stock a "positive" rating in a report on Monday, July 14th. Barclays lifted their price target on shares of Taiwan Semiconductor Manufacturing from $275.00 to $325.00 and gave the stock an "overweight" rating in a research note on Tuesday, September 16th. Needham & Company LLC reaffirmed a "buy" rating and set a $270.00 price target on shares of Taiwan Semiconductor Manufacturing in a research note on Thursday, July 17th. Finally, Wall Street Zen raised shares of Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a research note on Sunday, August 31st. Four investment analysts have rated the stock with a Buy rating, According to MarketBeat.com, Taiwan Semiconductor Manufacturing has a consensus rating of "Buy" and a consensus target price of $286.67.

Taiwan Semiconductor Manufacturing Stock Performance

The company has a debt-to-equity ratio of 0.20, a quick ratio of 2.15 and a current ratio of 2.37. The firm has a market cap of $1.44 trillion, a P/E ratio of 31.55, a price-to-earnings-growth ratio of 1.34 and a beta of 1.23. The firm's fifty day moving average price is $244.61 and its 200 day moving average price is $207.80.

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

Taiwan Semiconductor Manufacturing Increases Dividend

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

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Goldman Sachs Group Inc. increased its stake in shares of Taiwan Semiconductor Manufacturing by 55.6% in the first quarter. Goldman Sachs Group Inc. now owns 17,306,108 shares of the semiconductor company's stock worth $2,872,814,000 after acquiring an additional 6,180,445 shares during the period. Bank of America Corp DE increased its stake in shares of Taiwan Semiconductor Manufacturing by 0.8% in the second quarter. Bank of America Corp DE now owns 14,805,720 shares of the semiconductor company's stock worth $3,353,348,000 after acquiring an additional 115,158 shares during the period. Price T Rowe Associates Inc. MD boosted its holdings in Taiwan Semiconductor Manufacturing by 19.1% during the first quarter. Price T Rowe Associates Inc. MD now owns 12,350,239 shares of the semiconductor company's stock worth $2,050,141,000 after buying an additional 1,984,835 shares in the last quarter. Jennison Associates LLC boosted its holdings in Taiwan Semiconductor Manufacturing by 26.7% during the second quarter. Jennison Associates LLC now owns 12,046,792 shares of the semiconductor company's stock worth $2,728,478,000 after buying an additional 2,537,760 shares in the last quarter. Finally, Alliancebernstein L.P. boosted its holdings in Taiwan Semiconductor Manufacturing by 18.0% during the second quarter. Alliancebernstein L.P. now owns 10,457,800 shares of the semiconductor company's stock worth $2,368,587,000 after buying an additional 1,593,786 shares in the last quarter. Institutional investors and hedge funds own 16.51% of the company's stock.

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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