Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 6.3% - Here's What Happened

Key Points

• Taiwan Semiconductor Manufacturing's shares fell 6.3% to $281.08, with trading volume significantly exceeding average levels.
• Despite the drop, analysts remain positive, with a consensus rating of "Moderate Buy" and an average price target of $333.33.
• The company announced an increase in its quarterly dividend to $0.8348, reflecting a 1.2% dividend yield and a positive change from the previous $0.65.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) traded down 6.3% during trading on Friday . The company traded as low as $280.33 and last traded at $281.08. 22,689,614 shares traded hands during mid-day trading, an increase of 57% from the average session volume of 14,486,906 shares. The stock had previously closed at $299.88.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on the stock. Wall Street Zen upgraded shares of Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a research report on Sunday, August 31st. Susquehanna upped their price objective on shares of Taiwan Semiconductor Manufacturing from $300.00 to $400.00 and gave the company a "positive" rating in a report on Friday. Itau BBA Securities started coverage on shares of Taiwan Semiconductor Manufacturing in a report on Tuesday. They issued an "outperform" rating for the company. Needham & Company LLC reissued a "buy" rating and issued a $270.00 price objective on shares of Taiwan Semiconductor Manufacturing in a report on Thursday, July 17th. Finally, Weiss Ratings reissued a "hold (c+)" rating on shares of Taiwan Semiconductor Manufacturing in a report on Wednesday. Five research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat.com, Taiwan Semiconductor Manufacturing presently has a consensus rating of "Moderate Buy" and an average price target of $333.33.

Taiwan Semiconductor Manufacturing Trading Down 6.3%

The company has a market cap of $1.46 trillion, a PE ratio of 32.05, a price-to-earnings-growth ratio of 1.45 and a beta of 1.28. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.37 and a quick ratio of 2.15. The company's 50 day simple moving average is $255.00 and its two-hundred day simple moving average is $216.42.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last posted its quarterly earnings data on Thursday, July 17th. The semiconductor company reported $2.47 EPS for the quarter, beating the consensus estimate 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 net margin of 42.91% and a return on equity of 33.37%. The business's revenue for the quarter was up 44.4% compared to the same quarter last year. During the same quarter last year, the firm posted $1.48 earnings per share. Taiwan Semiconductor Manufacturing has set its Q3 2025 guidance at EPS. As a group, sell-side analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, January 8th. Stockholders of record on Thursday, December 11th will be issued a $0.8348 dividend. This represents a $3.34 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend is Thursday, December 11th. This is a positive change from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.65. Taiwan Semiconductor Manufacturing's dividend payout ratio is presently 29.99%.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Institutional investors have recently bought and sold shares of the company. Catalyst Private Wealth LLC grew its stake in shares of Taiwan Semiconductor Manufacturing by 2.8% during the 3rd quarter. Catalyst Private Wealth LLC now owns 1,407 shares of the semiconductor company's stock worth $393,000 after purchasing an additional 38 shares during the period. Venture Visionary Partners LLC lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 1.1% during the 3rd quarter. Venture Visionary Partners LLC now owns 3,540 shares of the semiconductor company's stock worth $989,000 after acquiring an additional 39 shares during the period. Alliance Wealth Advisors LLC lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 2.4% during the 2nd quarter. Alliance Wealth Advisors LLC now owns 1,815 shares of the semiconductor company's stock worth $411,000 after acquiring an additional 43 shares during the period. Pflug Koory LLC lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 3.9% during the 2nd quarter. Pflug Koory LLC now owns 1,133 shares of the semiconductor company's stock worth $257,000 after acquiring an additional 43 shares during the period. Finally, Frazier Financial Advisors LLC raised its holdings in Taiwan Semiconductor Manufacturing by 9.1% in the second quarter. Frazier Financial Advisors LLC now owns 517 shares of the semiconductor company's stock valued at $117,000 after buying an additional 43 shares during the period. 16.51% of the stock is owned by institutional investors and hedge funds.

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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