Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Up 2.7% After Insider Buying Activity

Key Points

• TSMC shares rose 2.7% to about $417 during mid-day trading after insider buying activity.
• Vice President Bor-Zen Tien purchased 1,000 shares in two separate transactions, increasing his holdings and signaling potential management confidence.
• Analysts maintain a bullish outlook, with the stock carrying a consensus “Buy” rating and an average price target of $496.25; TSMC also raised its quarterly dividend to $1.1136.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) rose 2.7% during mid-day trading on Tuesday following insider buying activity. The company traded as high as $420.25 and last traded at $417.2060. 13,842,436 shares were traded during mid-day trading, a decline of 2% from the average session volume of 14,131,813 shares. The stock had previously closed at $406.11.

Specifically, VP Bor-Zen Tien bought 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction dated Monday, August 3rd. The stock was bought at an average price of $73.06 per share, for a total transaction of $73,060.00. Following the completion of the acquisition, the vice president directly owned 14,051 shares of the company's stock, valued at approximately $1,026,566.06. This trade represents a 7.66% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Bor-Zen Tien purchased 1,000 shares of the stock in a transaction dated Tuesday, July 28th. The shares were acquired at an average price of $67.97 per share, for a total transaction of $67,970.00. Following the acquisition, the vice president directly owned 5,000 shares of the company's stock, valued at $339,850. This represents a 25.00% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure.

Wall Street Analysts Forecast Growth

TSM has been the subject of a number of research reports. DA Davidson raised their price objective on Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the stock a "buy" rating in a research report on Friday, July 17th. Zacks Research upgraded Taiwan Semiconductor Manufacturing from a "hold" rating to a "strong-buy" rating in a research note on Thursday, July 16th. Bank of America lifted their target price on shares of Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the stock a "buy" rating in a report on Wednesday, June 24th. Citigroup reissued a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research report on Monday, July 6th. Finally, Wall Street Zen upgraded shares of Taiwan Semiconductor Manufacturing from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 18th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and an average target price of $496.25.

Taiwan Semiconductor Manufacturing News Roundup

Here are the key news stories impacting Taiwan Semiconductor Manufacturing this week:

• Positive Sentiment: A broad semiconductor rally, fueled by renewed AI spending expectations, sent several chip-focused exchange-traded funds sharply higher. As the leading foundry for advanced processors, TSM is benefiting from increased investor interest in companies tied to data centers, AI accelerators and advanced manufacturing. Semiconductor ETFs Surge up to 19% in Huge Rally as the AI Trade Ramps Back Up
• Positive Sentiment: TSMC Vice President Bor-Zen Tien purchased 1,000 shares in an open-market transaction valued at approximately $73,060, increasing his position by 7.66%. While modest relative to the company’s size, the insider buying may be viewed as a signal of management confidence. TSMC Insider Purchase
• Positive Sentiment: Recent coverage highlights record chip demand and identifies TSMC as a potential beneficiary of continued AI infrastructure investment. Analysts and investors continue to view the company’s advanced-node technology and foundry scale as key competitive advantages. Taiwan Semiconductor in Focus as Chip Demand Hits Records
• Neutral Sentiment: A comparison with Intel argues that Intel’s improving execution could make it a more credible alternative for some investors. The article does not directly undermine TSMC’s technology leadership, but it reinforces competitive and valuation considerations for TSM shares. Buying Intel Over TSMC Isn't as Crazy as It Might Seem
• Negative Sentiment: Reports of widespread losses among Asia-focused hedge funds during July’s technology selloff underscore the sector’s sensitivity to crowded AI trades and changing risk appetite. The current rebound is favorable for TSM, but the episode highlights the potential for continued sharp swings. Asia Hedge Funds Suffer Widespread Losses in July Market Rout

Taiwan Semiconductor Manufacturing Stock Performance

The firm has a fifty day simple moving average of $427.19 and a 200-day simple moving average of $385.17. The company has a current ratio of 2.46, a quick ratio of 2.25 and a debt-to-equity ratio of 0.13. The stock has a market cap of $2.16 trillion, a price-to-earnings ratio of 30.10, a P/E/G ratio of 0.93 and a beta of 1.39.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last released its earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 EPS for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 39.37% and a net margin of 50.31%.The company had revenue of $39.89 billion during the quarter. Analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.44 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Wednesday, September 16th will be paid a $1.1136 dividend. This represents a $4.45 annualized dividend and a yield of 1.1%. The ex-dividend date is Wednesday, September 16th. This is a positive change from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.95. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is presently 21.43%.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in TSM. Brighton Jones LLC boosted its holdings in Taiwan Semiconductor Manufacturing by 20.9% in the 4th quarter. Brighton Jones LLC now owns 10,930 shares of the semiconductor company's stock valued at $2,159,000 after purchasing an additional 1,892 shares during the period. Gamco Investors INC. ET AL bought a new position in Taiwan Semiconductor Manufacturing in the 2nd quarter valued at approximately $701,000. Bank of Nova Scotia grew its position in Taiwan Semiconductor Manufacturing by 12.8% during the 2nd quarter. Bank of Nova Scotia now owns 15,697 shares of the semiconductor company's stock worth $3,556,000 after acquiring an additional 1,784 shares during the last quarter. FWL Investment Management LLC raised its holdings in Taiwan Semiconductor Manufacturing by 26.5% in the 2nd quarter. FWL Investment Management LLC now owns 253 shares of the semiconductor company's stock valued at $57,000 after buying an additional 53 shares during the last quarter. Finally, Main Street Financial Solutions LLC bought a new position in shares of Taiwan Semiconductor Manufacturing during the second quarter valued at $270,000. Institutional investors own 16.51% of the company's stock.

About Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Company (TSMC) is a leading pure-play semiconductor foundry that provides wafer fabrication and related services to the global semiconductor industry. Founded in 1987 by Morris Chang and headquartered in Hsinchu, Taiwan, TSMC manufactures integrated circuits on behalf of fabless and integrated device manufacturers, offering contract chip production across a broad set of technologies and products.

TSMC's service offering covers logic and mixed-signal process technologies, specialty processes for radio-frequency, power management and embedded memory, and advanced nodes used in mobile, high-performance computing and AI applications.

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