Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 1.8% - What's Next?

Key Points

• Taiwan Semiconductor Manufacturing shares decreased by 1.8%, trading as low as $225.63, with a significant drop in trading volume compared to the average.
• Analysts maintain a positive outlook with several upgrading ratings and price targets, including a consensus target of $258.33.
• The company reported strong earnings, with $30.07 billion in revenue for the quarter, surpassing estimates and showing a 44.4% year-over-year growth.

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) traded down 1.8% during trading on Tuesday . The stock traded as low as $225.63 and last traded at $226.80. 5,522,357 shares were traded during mid-day trading, a decline of 63% from the average session volume of 14,786,357 shares. The stock had previously closed at $230.87.

Analysts Set New Price Targets

Several research analysts recently weighed in on the stock. Needham & Company LLC restated a "buy" rating and set a $270.00 price target on shares of Taiwan Semiconductor Manufacturing in a report on Thursday, July 17th. Wall Street Zen upgraded Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a research note on Sunday. Citigroup reaffirmed a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a report on Thursday, May 22nd. Barclays reiterated an "overweight" rating and set a $240.00 price target (up from $215.00) on shares of Taiwan Semiconductor Manufacturing in a report on Tuesday, June 3rd. Finally, Susquehanna upped their price objective on Taiwan Semiconductor Manufacturing from $255.00 to $265.00 and gave the company a "positive" rating in a research note 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 a consensus price target of $258.33.

Taiwan Semiconductor Manufacturing Stock Performance

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 50 day simple moving average of $235.31 and a 200-day simple moving average of $199.96. The stock has a market capitalization of $1.18 trillion, a P/E ratio of 25.93, a price-to-earnings-growth ratio of 1.10 and a beta of 1.23.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last announced its quarterly earnings data on Thursday, July 17th. The semiconductor company reported $2.47 earnings per share for the quarter, topping the consensus estimate of $2.13 by $0.34. Taiwan Semiconductor Manufacturing had a return on equity of 33.37% and a net margin of 42.91%.The company had revenue of $30.07 billion during the quarter, compared to analyst estimates of $28.50 billion. During the same quarter last year, the firm posted $1.48 EPS. The firm's revenue for the quarter was up 44.4% on a year-over-year basis. Taiwan Semiconductor Manufacturing has set its Q3 2025 guidance at EPS. On average, equities analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, January 8th. Stockholders of record on Thursday, December 11th will be given a $0.8348 dividend. This represents a $3.34 annualized dividend and a dividend yield of 1.5%. This is an increase from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.65. The ex-dividend date of this dividend is Thursday, December 11th. Taiwan Semiconductor Manufacturing's payout ratio is presently 28.16%.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Total Investment Management Inc. purchased a new stake in shares of Taiwan Semiconductor Manufacturing during the second quarter worth $78,000. Centaurus Financial Inc. raised its stake in shares of Taiwan Semiconductor Manufacturing by 14.2% during the 2nd quarter. Centaurus Financial Inc. now owns 22,726 shares of the semiconductor company's stock valued at $5,147,000 after purchasing an additional 2,819 shares during the period. Orion Porfolio Solutions LLC lifted its holdings in Taiwan Semiconductor Manufacturing by 6.1% during the 2nd quarter. Orion Porfolio Solutions LLC now owns 141,110 shares of the semiconductor company's stock worth $31,960,000 after purchasing an additional 8,066 shares in the last quarter. BLVD Private Wealth LLC bought a new position in Taiwan Semiconductor Manufacturing in the 2nd quarter worth about $291,000. Finally, Thompson Davis & CO. Inc. purchased a new position in Taiwan Semiconductor Manufacturing during the 2nd quarter valued at about $250,000. 16.51% of the stock is currently owned by hedge funds and other institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.