Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Up 3.5% - Still a Buy?

Key Points

• Taiwan Semiconductor Manufacturing Company (TSMC) shares rose by 3.5%, closing at $302.36, after trading up to $307.30, with trading volume increasing by 9% compared to its average.
• Analysts are optimistic about TSMC, with four ratings of "Buy" and one "Hold," leading to a consensus price target of $286.67, as firms like Barclays raised their target price to $325.00.
• TSMC announced an increase in its quarterly dividend to $0.8348, representing a 1.1% yield, with the payout set for January 8th, 2025, reinforcing its strong financial performance.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) shares shot up 3.5% on Monday . The company traded as high as $307.30 and last traded at $302.36. 15,740,593 shares were traded during mid-day trading, an increase of 9% from the average session volume of 14,482,455 shares. The stock had previously closed at $292.19.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on TSM shares. Susquehanna raised their target price 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. Wall Street Zen upgraded 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 research note on Thursday, July 17th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Taiwan Semiconductor Manufacturing in a research report on Saturday, September 27th. Finally, Barclays lifted their target price on Taiwan Semiconductor Manufacturing from $275.00 to $325.00 and gave the stock an "overweight" rating in a research report on Tuesday, September 16th. Four research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $286.67.

Taiwan Semiconductor Manufacturing Trading Up 3.5%

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 has a market capitalization of $1.57 trillion, a price-to-earnings ratio of 34.48, a price-to-earnings-growth ratio of 1.39 and a beta of 1.28. The business's 50 day simple moving average is $251.53 and its 200 day simple moving average is $214.43.

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 firm had revenue of $30.07 billion during the quarter, compared to the consensus estimate of $28.50 billion. Taiwan Semiconductor Manufacturing had a return on equity of 33.37% and a net margin of 42.91%.The firm's revenue was up 44.4% compared to the same quarter last year. During the same period in the prior year, the business earned $1.48 EPS. Taiwan Semiconductor Manufacturing has set its Q3 2025 guidance at EPS. Research analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, January 8th. Investors of record on Thursday, December 11th will be paid a $0.8348 dividend. This represents a $3.34 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend is Thursday, December 11th. This is an increase from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.65. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is 29.42%.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Several hedge funds have recently bought and sold shares of the stock. Moody National Bank Trust Division purchased a new stake in shares of Taiwan Semiconductor Manufacturing in the third quarter valued at $2,217,000. Old Port Advisors boosted its position in Taiwan Semiconductor Manufacturing by 2.1% during the 3rd quarter. Old Port Advisors now owns 2,703 shares of the semiconductor company's stock worth $755,000 after purchasing an additional 55 shares during the period. Gradient Investments LLC boosted its stake in shares of Taiwan Semiconductor Manufacturing by 57.0% in the third quarter. Gradient Investments LLC now owns 5,097 shares of the semiconductor company's stock valued at $1,424,000 after purchasing an additional 1,850 shares during the period. AssuredPartners Investment Advisors LLC boosted its position in Taiwan Semiconductor Manufacturing by 4.1% in the 3rd quarter. AssuredPartners Investment Advisors LLC now owns 5,674 shares of the semiconductor company's stock valued at $1,585,000 after buying an additional 222 shares during the last quarter. Finally, Heartwood Wealth Advisors LLC purchased a new position in Taiwan Semiconductor Manufacturing in the 3rd quarter valued at about $32,000. 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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