Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 2.8% - Time to Sell?

Key Points

• Taiwan Semiconductor Manufacturing Company (NYSE: TSM) saw its stock price drop by 2.8%, closing at $234.95, amid a significant decline in trading volume.
• Numerous analysts have issued positive ratings on TSM, with a consensus rating of "Moderate Buy" and an average price target of $258.33, following a strong quarterly earnings report that exceeded estimates.
• The company declared a quarterly dividend of $0.6499 per share, resulting in an annualized yield of 1.1%, with a payout ratio of 28.16%.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report)'s share price dropped 2.8% during trading on Friday . The company traded as low as $231.84 and last traded at $234.95. Approximately 6,181,060 shares traded hands during trading, a decline of 60% from the average daily volume of 15,416,677 shares. The stock had previously closed at $241.62.

Wall Street Analyst Weigh In

TSM has been the subject of a number of recent research reports. Barclays restated an "overweight" rating and set a $240.00 price objective (up from $215.00) on shares of Taiwan Semiconductor Manufacturing in a research note on Tuesday, June 3rd. Susquehanna increased their price objective on shares of Taiwan Semiconductor Manufacturing from $255.00 to $265.00 and gave the stock a "positive" rating in a research note on Monday, July 14th. Citigroup restated a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research note on Thursday, May 22nd. Finally, Needham & Company LLC restated a "buy" rating and set a $270.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research note on Thursday, July 17th. One analyst has rated the stock with a hold rating and four have given a buy rating to the stock. According to MarketBeat, Taiwan Semiconductor Manufacturing presently has a consensus rating of "Moderate Buy" and an average price target of $258.33.

Taiwan Semiconductor Manufacturing Trading Down 2.6%

The company has a debt-to-equity ratio of 0.18, a current ratio of 2.37 and a quick ratio of 2.18. The business's 50-day moving average price is $222.20 and its two-hundred day moving average price is $196.06. The company has a market capitalization of $1.22 trillion, a price-to-earnings ratio of 26.83, a P/E/G ratio of 1.16 and a beta of 1.19.

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 (EPS) for the quarter, beating analysts' consensus estimates of $2.13 by $0.34. The business had revenue of $30.07 billion for the quarter, compared to analysts' expectations of $28.50 billion. Taiwan Semiconductor Manufacturing had a net margin of 42.91% and a return on equity of 32.87%. The firm's quarterly revenue was up 44.4% compared to the same quarter last year. During the same period last year, the firm posted $1.48 earnings per share. Research analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 9th. Shareholders of record on Tuesday, September 16th will be paid a dividend of $0.6499 per share. This represents a $2.60 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend is Tuesday, September 16th. Taiwan Semiconductor Manufacturing's payout ratio is presently 28.16%.

Institutional Trading of Taiwan Semiconductor Manufacturing

A number of hedge funds and other institutional investors have recently modified their holdings of TSM. Mid American Wealth Advisory Group Inc. bought a new stake in Taiwan Semiconductor Manufacturing during the second quarter valued at $33,000. Accredited Wealth Management LLC bought a new stake in Taiwan Semiconductor Manufacturing during the fourth quarter valued at $31,000. First Command Advisory Services Inc. raised its holdings in shares of Taiwan Semiconductor Manufacturing by 174.1% during the second quarter. First Command Advisory Services Inc. now owns 159 shares of the semiconductor company's stock valued at $36,000 after purchasing an additional 101 shares during the period. City Holding Co. boosted its position in shares of Taiwan Semiconductor Manufacturing by 238.0% during the 1st quarter. City Holding Co. now owns 169 shares of the semiconductor company's stock worth $28,000 after purchasing an additional 119 shares in the last quarter. Finally, 1248 Management LLC bought a new position in shares of Taiwan Semiconductor Manufacturing during the 1st quarter worth about $28,000. 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.