Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Gap Up - What's Next?

Key Points

• Taiwan Semiconductor Manufacturing Company (TSMC) shares experienced a significant increase, opening at $282.39 after closing at $272.63 prior to trading.
• Analysts have raised their price targets for TSMC, with Barclays setting a new target of $325.00, while the average target across analysts stands at $286.67.
• The company recently announced an increase in its quarterly dividend to $0.8348 per share, representing an annualized dividend yield of 1.2%.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) gapped up prior to trading on Tuesday . The stock had previously closed at $272.63, but opened at $282.39. Taiwan Semiconductor Manufacturing shares last traded at $284.87, with a volume of 3,419,282 shares changing hands.

Analysts Set New Price Targets

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

Taiwan Semiconductor Manufacturing Stock Performance

The company has a current ratio of 2.37, a quick ratio of 2.15 and a debt-to-equity ratio of 0.20. The company has a market capitalization of $1.46 trillion, a PE ratio of 32.13, a price-to-earnings-growth ratio of 1.26 and a beta of 1.23. The business's fifty day moving average is $242.83 and its two-hundred day moving average is $206.76.

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, topping analysts' consensus estimates of $2.13 by $0.34. The business had revenue of $30.07 billion during the quarter, compared to the consensus estimate of $28.50 billion. Taiwan Semiconductor Manufacturing had a net margin of 42.91% and a return on equity of 33.37%. The firm's revenue was up 44.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.48 EPS. Taiwan Semiconductor Manufacturing has set its Q3 2025 guidance at EPS. Equities research analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, January 8th. Shareholders of record on Thursday, December 11th will be issued a $0.8348 dividend. This is an increase from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.65. 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. Taiwan Semiconductor Manufacturing's dividend payout ratio is 29.42%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. City Holding Co. boosted its holdings in Taiwan Semiconductor Manufacturing by 238.0% in the 1st quarter. City Holding Co. now owns 169 shares of the semiconductor company's stock valued at $28,000 after purchasing an additional 119 shares during the last quarter. 1248 Management LLC acquired a new stake in shares of Taiwan Semiconductor Manufacturing in the 1st quarter valued at $28,000. Signature Resources Capital Management LLC raised its holdings in shares of Taiwan Semiconductor Manufacturing by 138.8% in the 1st quarter. Signature Resources Capital Management LLC now owns 191 shares of the semiconductor company's stock valued at $32,000 after purchasing an additional 111 shares in the last quarter. Resources Management Corp CT ADV purchased a new position in shares of Taiwan Semiconductor Manufacturing in the 2nd quarter valued at $32,000. Finally, Graybill Wealth Management LTD. purchased a new position in shares of Taiwan Semiconductor Manufacturing in the 1st quarter valued at $33,000. Hedge funds and other institutional investors own 16.51% of the company's stock.

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.

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