Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Up 2.2% - Time to Buy?

Key Points

• Taiwan Semiconductor Manufacturing Company's shares rose by 2.2% to $279.13, despite a significant decline in trading volume compared to its average session.
• Several brokerages have upgraded their ratings and price targets for TSM, with Barclays increasing its target from $275 to $325 and Wall Street Zen upgrading from "hold" to "buy."
• The company announced a quarterly dividend increase from $0.65 to $0.8348, set to be paid on January 8, reflecting a 1.2% yield for investors.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) shot up 2.2% on Tuesday . The company traded as high as $279.49 and last traded at $279.13. 8,310,175 shares changed hands during trading, a decline of 43% from the average session volume of 14,518,954 shares. The stock had previously closed at $273.23.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on TSM. Barclays raised their target price on shares of Taiwan Semiconductor Manufacturing from $275.00 to $325.00 and gave the company an "overweight" rating in a research note on Tuesday, September 16th. 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. Needham & Company LLC reiterated a "buy" rating and set a $270.00 price target on shares of Taiwan Semiconductor Manufacturing in a report on Thursday, July 17th. Finally, Susquehanna increased their price target on shares of Taiwan Semiconductor Manufacturing from $255.00 to $265.00 and gave the company a "positive" rating in a report on Monday, July 14th. Four analysts have rated the stock with a Buy rating, Based on data from MarketBeat, Taiwan Semiconductor Manufacturing has an average rating of "Buy" and a consensus price target of $286.67.

Taiwan Semiconductor Manufacturing Stock Up 2.2%

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 company's fifty day moving average is $246.60 and its 200-day moving average is $210.42. The company has a market cap of $1.45 trillion, a PE ratio of 31.83, a PEG ratio of 1.30 and a beta of 1.23.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last issued its earnings results on Thursday, July 17th. The semiconductor company reported $2.47 earnings per share (EPS) for the quarter, topping 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 company had revenue of $30.07 billion for the quarter, compared to analysts' expectations of $28.50 billion. During the same quarter last year, the company posted $1.48 earnings per share. The firm's quarterly revenue was up 44.4% on a year-over-year basis. Taiwan Semiconductor Manufacturing has set its Q3 2025 guidance at EPS. On average, analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, January 8th. Investors 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 annualized dividend and a yield of 1.2%. The ex-dividend date is Thursday, December 11th. Taiwan Semiconductor Manufacturing's dividend payout ratio is 29.42%.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. Cullen Capital Management LLC raised its position in Taiwan Semiconductor Manufacturing by 43.1% in the second quarter. Cullen Capital Management LLC now owns 235,376 shares of the semiconductor company's stock worth $53,310,000 after acquiring an additional 70,932 shares during the period. Caldwell Trust Co bought a new stake in shares of Taiwan Semiconductor Manufacturing during the 2nd quarter valued at $4,519,000. Watts Gwilliam & Co. LLC bought a new stake in shares of Taiwan Semiconductor Manufacturing during the 2nd quarter valued at $250,000. Valeo Financial Advisors LLC raised its position in shares of Taiwan Semiconductor Manufacturing by 4.9% during the 2nd quarter. Valeo Financial Advisors LLC now owns 30,577 shares of the semiconductor company's stock valued at $6,925,000 after purchasing an additional 1,433 shares during the period. Finally, Silicon Valley Capital Partners raised its position in shares of Taiwan Semiconductor Manufacturing by 102.7% during the 2nd quarter. Silicon Valley Capital Partners now owns 2,971 shares of the semiconductor company's stock valued at $673,000 after purchasing an additional 1,505 shares during the period. 16.51% of the stock is currently owned by 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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