Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 3% - Should You Sell?

Key Points

• Taiwan Semiconductor Manufacturing Company (TSMC) shares dropped 3% to $231.72, with a significant decline in trading volume, indicating decreased investor interest.
• Analysts have varied opinions on TSMC, with price targets set between $240.00 and $270.00, and an average rating of "Moderate Buy".
• The company reported strong quarterly earnings, with revenues of $30.07 billion and EPS of $2.47, exceeding analyst expectations.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report)'s share price dropped 3% during trading on Tuesday . The company traded as low as $230.17 and last traded at $231.72. Approximately 5,369,488 shares changed hands during trading, a decline of 65% from the average daily volume of 15,325,855 shares. The stock had previously closed at $239.00.

Analysts Set New Price Targets

A number of analysts have commented on TSM shares. Susquehanna upped their price target 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. Barclays reiterated an "overweight" rating and set a $240.00 target price (up previously from $215.00) on shares of Taiwan Semiconductor Manufacturing in a research report on Tuesday, June 3rd. Needham & Company LLC reiterated a "buy" rating and set a $270.00 target price on shares of Taiwan Semiconductor Manufacturing in a research report on Thursday, July 17th. Finally, Citigroup reiterated a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research report on Thursday, May 22nd. One research 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 an average rating of "Moderate Buy" and an average price target of $258.33.

Taiwan Semiconductor Manufacturing Stock Down 2.5%

The company has a quick ratio of 2.15, a current ratio of 2.37 and a debt-to-equity ratio of 0.18. The stock has a market cap of $1.21 trillion, a PE ratio of 26.60, a P/E/G ratio of 1.13 and a beta of 1.19. The business has a 50 day moving average price of $223.13 and a 200 day moving average price of $196.04.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last released its quarterly earnings results on Thursday, July 17th. The semiconductor company reported $2.47 earnings per share for the quarter, topping analysts' consensus estimates of $2.13 by $0.34. The company had revenue of $30.07 billion during the quarter, compared to analysts' expectations of $28.50 billion. Taiwan Semiconductor Manufacturing had a return on equity of 32.87% and a net margin of 42.91%. Taiwan Semiconductor Manufacturing's quarterly revenue was up 44.4% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.48 EPS. Equities research analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 9th. Investors of record on Tuesday, September 16th will be given a $0.6499 dividend. This represents a $2.60 annualized dividend and a yield of 1.1%. The ex-dividend date is Tuesday, September 16th. Taiwan Semiconductor Manufacturing's dividend payout ratio is presently 28.16%.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Several institutional investors and hedge funds have recently modified their holdings of TSM. Mid American Wealth Advisory Group Inc. acquired a new stake in Taiwan Semiconductor Manufacturing in the second quarter valued at $33,000. Accredited Wealth Management LLC acquired a new stake in shares of Taiwan Semiconductor Manufacturing during the fourth quarter worth about $31,000. First Command Advisory Services Inc. increased its position 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 worth $36,000 after purchasing an additional 101 shares in the last quarter. City Holding Co. increased its position in shares of Taiwan Semiconductor Manufacturing by 238.0% during the first 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 purchased a new stake in Taiwan Semiconductor Manufacturing in the 1st quarter valued at approximately $28,000. Hedge funds and other institutional investors own 16.51% of the company's stock.

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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