Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 1.6% - Time to Sell?

Key Points

• Taiwan Semiconductor Manufacturing's stock price dropped by 1.6%, closing at $264.27 after trading as low as $262.81, with increased trading volume.
• Analysts have a generally positive outlook, with four rating the stock as a "Buy" and a consensus price target of $286.67.
• The company announced a dividend increase to $0.8348 per share, reflecting a 1.3% yield, with the next payment scheduled for January 8th.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report)'s stock price traded down 1.6% during trading on Friday . The stock traded as low as $262.81 and last traded at $264.27. 17,597,497 shares were traded during trading, an increase of 20% from the average session volume of 14,625,179 shares. The stock had previously closed at $268.64.

Analyst Ratings Changes

TSM has been the subject of a number of recent analyst reports. Needham & Company LLC reissued a "buy" rating and issued a $270.00 price objective on shares of Taiwan Semiconductor Manufacturing in a report on Thursday, July 17th. Wall Street Zen raised Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a research note on Sunday, August 31st. Citigroup restated a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a report on Thursday, May 22nd. Barclays increased their target price on shares of Taiwan Semiconductor Manufacturing from $275.00 to $325.00 and gave the stock an "overweight" rating in a research report on Tuesday. Finally, Susquehanna raised their price target on Taiwan Semiconductor Manufacturing from $255.00 to $265.00 and gave the company a "positive" rating in a research report on Monday, July 14th. Four analysts have rated the stock with a Buy rating, According to MarketBeat.com, the stock has an average rating of "Buy" and an average price target of $286.67.

Taiwan Semiconductor Manufacturing Stock Down 1.6%

The firm has a market capitalization of $1.37 trillion, a P/E ratio of 30.13, a PEG ratio of 1.25 and a beta of 1.23. The firm's 50-day moving average is $241.27 and its 200 day moving average is $205.15. The company has a debt-to-equity ratio of 0.20, a quick ratio of 2.15 and a current ratio of 2.37.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last announced its quarterly earnings results on Thursday, July 17th. The semiconductor company reported $2.47 EPS for the quarter, beating analysts' consensus estimates 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 business had revenue of $30.07 billion for the quarter, compared to analyst estimates of $28.50 billion. During the same quarter in the prior year, the business earned $1.48 EPS. Taiwan Semiconductor Manufacturing's quarterly revenue was up 44.4% on a year-over-year basis. Taiwan Semiconductor Manufacturing has set its Q3 2025 guidance at EPS. As a group, equities research analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, January 8th. Stockholders of record on Thursday, December 11th will be given a dividend of $0.8348 per share. This represents a $3.34 annualized dividend and a dividend yield of 1.3%. This is a boost from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.65. The ex-dividend date is Thursday, December 11th. Taiwan Semiconductor Manufacturing's dividend payout ratio is currently 29.42%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in TSM. Alliance Wealth Advisors LLC raised its position in shares of Taiwan Semiconductor Manufacturing by 2.4% in the second quarter. Alliance Wealth Advisors LLC now owns 1,815 shares of the semiconductor company's stock valued at $411,000 after purchasing an additional 43 shares during the period. Pflug Koory LLC grew its holdings in shares of Taiwan Semiconductor Manufacturing by 3.9% during the 2nd quarter. Pflug Koory LLC now owns 1,133 shares of the semiconductor company's stock valued at $257,000 after purchasing an additional 43 shares during the last quarter. Frazier Financial Advisors LLC grew its holdings in shares of Taiwan Semiconductor Manufacturing by 9.1% during the 2nd quarter. Frazier Financial Advisors LLC now owns 517 shares of the semiconductor company's stock valued at $117,000 after purchasing an additional 43 shares during the last quarter. Flagship Harbor Advisors LLC boosted its position in Taiwan Semiconductor Manufacturing by 1.2% during the 2nd quarter. Flagship Harbor Advisors LLC now owns 3,621 shares of the semiconductor company's stock valued at $820,000 after buying an additional 43 shares during the period. Finally, Liberty One Investment Management LLC boosted its position in Taiwan Semiconductor Manufacturing by 4.3% during the 2nd quarter. Liberty One Investment Management LLC now owns 1,076 shares of the semiconductor company's stock valued at $244,000 after buying an additional 44 shares during the period. 16.51% of the stock is currently owned by hedge funds and other 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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