Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Up 3.9% - Should You Buy?

Key Points

• TSMC shares rose 3.9% on Monday, trading as high as $442.58 after closing at $423.93, with heavy volume of 11.1 million shares.
• Analyst sentiment remains broadly positive, with a consensus Buy rating and several firms raising targets, including Needham lifting its price target to $480.
• The company also increased its quarterly dividend to $1.1136 per share, up from $0.95, signaling continued financial strength and a 1.0% annualized yield.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) shares shot up 3.9% during trading on Monday . The company traded as high as $442.58 and last traded at $440.3540. 11,144,987 shares traded hands during mid-day trading, a decline of 19% from the average session volume of 13,778,508 shares. The stock had previously closed at $423.93.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on TSM. Zacks Research downgraded Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "hold" rating in a research note on Monday, March 16th. DA Davidson restated a "buy" rating and issued a $450.00 target price on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, April 17th. Weiss Ratings upgraded Taiwan Semiconductor Manufacturing from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, March 20th. Wall Street Zen upgraded Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a research note on Sunday, March 22nd. Finally, Needham & Company LLC upped their target price on Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the stock a "buy" rating in a research note on Thursday, April 16th. Two analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Buy" and an average price target of $404.29.

Taiwan Semiconductor Manufacturing Stock Up 3.9%

The company has a market cap of $2.28 trillion, a price-to-earnings ratio of 36.64, a PEG ratio of 1.24 and a beta of 1.39. The company has a current ratio of 2.49, a quick ratio of 2.31 and a debt-to-equity ratio of 0.16. The business has a fifty day moving average of $397.03 and a two-hundred day moving average of $353.17.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last released its quarterly earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share for the quarter. The company had revenue of $30.65 billion during the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 36.81% and a net margin of 46.97%. As a group, equities analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.3 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 8th. Investors of record on Wednesday, September 16th will be issued a $1.1136 dividend. This represents a $4.45 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend is Wednesday, September 16th. This is a positive change from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.95. Taiwan Semiconductor Manufacturing's payout ratio is currently 25.12%.

Insider Transactions at Taiwan Semiconductor Manufacturing

In related news, VP Tzu-Sou Chuang sold 200,000 shares of the company's stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $69.83, for a total value of $13,966,000.00. Following the completion of the transaction, the vice president owned 2,495,165 shares of the company's stock, valued at approximately $174,237,371.95. This represents a 7.42% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Bor-Zen Tien purchased 2,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction that occurred on Tuesday, May 19th. The stock was acquired at an average cost of $69.91 per share, with a total value of $139,820.00. Following the acquisition, the vice president directly owned 11,051 shares in the company, valued at $772,575.41. This trade represents a 22.10% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders purchased a total of 3,496 shares of company stock valued at $229,407 in the last ninety days. 1.11% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

A number of hedge funds have recently made changes to their positions in the company. LFG Wealth Partners LLC raised its holdings in shares of Taiwan Semiconductor Manufacturing by 1.2% during the first quarter. LFG Wealth Partners LLC now owns 10,519 shares of the semiconductor company's stock valued at $3,555,000 after acquiring an additional 122 shares during the last quarter. Rathbones Group PLC raised its holdings in shares of Taiwan Semiconductor Manufacturing by 0.7% during the first quarter. Rathbones Group PLC now owns 1,026,057 shares of the semiconductor company's stock valued at $346,756,000 after acquiring an additional 7,428 shares during the last quarter. Positano Wealth Management Ltd raised its holdings in shares of Taiwan Semiconductor Manufacturing by 8.0% during the first quarter. Positano Wealth Management Ltd now owns 20,182 shares of the semiconductor company's stock valued at $6,821,000 after acquiring an additional 1,492 shares during the last quarter. Parallel Advisors LLC raised its holdings in shares of Taiwan Semiconductor Manufacturing by 13.4% during the first quarter. Parallel Advisors LLC now owns 44,242 shares of the semiconductor company's stock valued at $14,952,000 after acquiring an additional 5,241 shares during the last quarter. Finally, First Nebraska Trust Co acquired a new position in shares of Taiwan Semiconductor Manufacturing during the first quarter valued at approximately $1,211,000. Institutional investors and hedge funds 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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