Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 2.7% - Time to Sell?

Key Points

• Taiwan Semiconductor Manufacturing Company (TSMC) shares dropped 2.7%, closing at $294.18, with a trading volume 10% below its average.
• The company recently declared a quarterly dividend of $0.8348 per share, indicating a positive change from its previous dividend and a yield of 1.1%.
• Analysts have mixed ratings, with a consensus of "Moderate Buy" and a price target of $286.67, while firms such as Needham & Company and Susquehanna provided positive outlooks on the stock.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) shares dropped 2.7% on Tuesday . The company traded as low as $293.28 and last traded at $294.18. Approximately 13,029,980 shares changed hands during trading, a decline of 10% from the average daily volume of 14,474,806 shares. The stock had previously closed at $302.40.

Analyst Ratings Changes

TSM has been the topic of several recent research reports. Needham & Company LLC restated a "buy" rating and set a $270.00 target price on shares of Taiwan Semiconductor Manufacturing in a report on Thursday, July 17th. Susquehanna lifted their price objective 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. Weiss Ratings reissued a "hold (c+)" rating on shares of Taiwan Semiconductor Manufacturing in a research note on Saturday, September 27th. Itau BBA Securities initiated coverage on Taiwan Semiconductor Manufacturing in a research note on Tuesday. They issued an "outperform" rating for the company. Finally, 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. Five equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $286.67.

Taiwan Semiconductor Manufacturing Trading Down 2.7%

The firm has a market capitalization of $1.53 trillion, a PE ratio of 33.54, a PEG ratio of 1.39 and a beta of 1.28. The business has a fifty day moving average price of $251.53 and a two-hundred day moving average price of $214.43. The company has a current ratio of 2.37, a quick ratio of 2.15 and a debt-to-equity ratio of 0.20.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last posted 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 company had revenue of $30.07 billion for the quarter, compared to analysts' expectations of $28.50 billion. Taiwan Semiconductor Manufacturing had a net margin of 42.91% and a return on equity of 33.37%. Taiwan Semiconductor Manufacturing's revenue for the quarter was up 44.4% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.48 earnings per share. Taiwan Semiconductor Manufacturing has set its Q3 2025 guidance at EPS. 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 declared a quarterly dividend, which will be paid on Thursday, January 8th. Shareholders of record on Thursday, December 11th will be paid a dividend of $0.8348 per share. This represents a $3.34 dividend on an annualized basis and a yield of 1.1%. This is a positive change from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.65. The ex-dividend date is Thursday, December 11th. Taiwan Semiconductor Manufacturing's payout ratio is currently 29.99%.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Hedge funds have recently bought and sold shares of the company. Goldman Sachs Group Inc. lifted its holdings in Taiwan Semiconductor Manufacturing by 55.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 17,306,108 shares of the semiconductor company's stock worth $2,872,814,000 after buying an additional 6,180,445 shares in the last quarter. Bank of America Corp DE increased its position in shares of 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 worth $3,353,348,000 after acquiring an additional 115,158 shares during the period. Price T Rowe Associates Inc. MD increased its position in shares of 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 acquiring an additional 1,984,835 shares during the period. Jennison Associates LLC raised its stake in shares of Taiwan Semiconductor Manufacturing by 26.7% in 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. boosted its holdings in Taiwan Semiconductor Manufacturing by 18.0% in 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 purchasing an additional 1,593,786 shares during the period. 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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