Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 1.9% - Here's Why

Key Points

• Taiwan Semiconductor Manufacturing Company saw its shares decrease by 1.9%, closing at $288.77 on Wednesday after previously being priced at $294.51.
• Analysts have raised their price targets for TSM, with Barclays setting a new target of $355 and Needham reporting a target of $360, highlighting a shift towards more positive ratings for the stock.
• The company recently announced a dividend increase to $0.8348 per share, reflecting its commitment to returning value to shareholders, with an ex-dividend date set for December 11.

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) fell 1.9% on Wednesday . The company traded as low as $284.40 and last traded at $288.77. 15,196,067 shares traded hands during trading, an increase of 4% from the average session volume of 14,606,805 shares. The stock had previously closed at $294.51.

Analysts Set New Price Targets

Several equities research analysts have weighed in on TSM shares. Wall Street Zen raised Taiwan Semiconductor Manufacturing from a "buy" rating to a "strong-buy" rating in a report on Saturday. Barclays raised their price target on Taiwan Semiconductor Manufacturing from $330.00 to $355.00 and gave the stock an "overweight" rating in a report on Friday, October 17th. Needham & Company LLC raised their price target on Taiwan Semiconductor Manufacturing from $270.00 to $360.00 and gave the stock a "buy" rating in a report on Thursday, October 16th. Susquehanna raised their price target on Taiwan Semiconductor Manufacturing from $300.00 to $400.00 and gave the stock a "positive" rating in a report on Friday, October 10th. Finally, Weiss Ratings reissued a "hold (c+)" rating on shares of Taiwan Semiconductor Manufacturing in a report on Wednesday, October 8th. Five investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $371.67.

Taiwan Semiconductor Manufacturing Stock Performance

The stock has a market capitalization of $1.50 trillion, a PE ratio of 29.62, a PEG ratio of 1.00 and a beta of 1.28. 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 firm has a 50 day moving average price of $264.29 and a 200-day moving average price of $224.00.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last announced its quarterly earnings data on Thursday, October 16th. The semiconductor company reported $2.92 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.59 by $0.33. Taiwan Semiconductor Manufacturing had a return on equity of 36.06% and a net margin of 43.72%.The firm had revenue of $32.36 billion during the quarter, compared to analysts' expectations of $951.89 billion. During the same period last year, the business posted $1.94 earnings per share. The company's revenue for the quarter was up 40.1% compared to the same quarter last year. Taiwan Semiconductor Manufacturing has set its Q4 2025 guidance at EPS. Research analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business 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. This is an increase from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.65. This represents a $3.34 annualized dividend and a yield of 1.2%. The ex-dividend date is Thursday, December 11th. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is 26.97%.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the stock. Goldman Sachs Group Inc. raised its position in Taiwan Semiconductor Manufacturing by 55.6% during the first quarter. Goldman Sachs Group Inc. now owns 17,306,108 shares of the semiconductor company's stock valued at $2,872,814,000 after acquiring an additional 6,180,445 shares in the last quarter. Bank of America Corp DE raised its position in Taiwan Semiconductor Manufacturing by 0.8% during the second quarter. Bank of America Corp DE now owns 14,805,720 shares of the semiconductor company's stock valued at $3,353,348,000 after acquiring an additional 115,158 shares in the last quarter. Price T Rowe Associates Inc. MD raised its position 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 valued at $2,050,141,000 after acquiring an additional 1,984,835 shares in the last quarter. Jennison Associates LLC raised its position 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 valued at $2,728,478,000 after acquiring an additional 2,537,760 shares in the last quarter. Finally, Alliancebernstein L.P. raised its position 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 valued at $2,368,587,000 after acquiring an additional 1,593,786 shares in the last quarter. 16.51% of the stock is currently 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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