Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 3% - Here's What Happened

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) was down 3% during mid-day trading on Tuesday . The stock traded as low as $230.17 and last traded at $231.72. Approximately 5,369,488 shares traded 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

Several analysts have issued reports on TSM shares. Susquehanna upped their price target on shares of Taiwan Semiconductor Manufacturing from $255.00 to $265.00 and gave the stock a "positive" rating in a research report on Monday, July 14th. Needham & Company LLC reiterated a "buy" rating and issued a $270.00 price objective on shares of Taiwan Semiconductor Manufacturing in a report on Thursday, July 17th. Citigroup reiterated a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a report on Thursday, May 22nd. Finally, Barclays reaffirmed an "overweight" rating and set a $240.00 price objective (up previously from $215.00) on shares of Taiwan Semiconductor Manufacturing in a research report on Tuesday, June 3rd. One equities research analyst has rated the stock with a hold rating and four have given a buy rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $258.33.

Taiwan Semiconductor Manufacturing Stock Down 1.3%

The company has a market cap of $1.24 trillion, a PE ratio of 27.41, a price-to-earnings-growth ratio of 1.12 and a beta of 1.19. The company has a fifty day moving average price of $225.43 and a 200 day moving average price of $196.75. The company has a debt-to-equity ratio of 0.18, a current ratio of 2.37 and a quick ratio of 2.15.

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, beating the consensus estimate of $2.13 by $0.34. The firm had revenue of $30.07 billion during the quarter, compared to the consensus estimate of $28.50 billion. Taiwan Semiconductor Manufacturing had a return on equity of 32.87% and a net margin of 42.91%. The business's revenue was up 44.4% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.48 earnings per share. As a group, analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS 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. Stockholders of record on Tuesday, September 16th will be paid a $0.6499 dividend. 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 dividend payout ratio is currently 28.16%.

Institutional Trading of Taiwan Semiconductor Manufacturing

A number of large investors have recently added to or reduced their stakes in the company. Alliance Wealth Advisors LLC boosted its holdings in Taiwan Semiconductor Manufacturing by 2.4% during the 2nd quarter. Alliance Wealth Advisors LLC now owns 1,815 shares of the semiconductor company's stock valued at $411,000 after acquiring an additional 43 shares during the period. Pflug Koory LLC increased its position in 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 buying an additional 43 shares in the last quarter. Frazier Financial Advisors LLC boosted its stake in shares of Taiwan Semiconductor Manufacturing by 9.1% in the second quarter. Frazier Financial Advisors LLC now owns 517 shares of the semiconductor company's stock worth $117,000 after buying an additional 43 shares during the last quarter. Flagship Harbor Advisors LLC boosted its stake in shares of Taiwan Semiconductor Manufacturing by 1.2% in the second quarter. Flagship Harbor Advisors LLC now owns 3,621 shares of the semiconductor company's stock worth $820,000 after buying an additional 43 shares during the last quarter. Finally, Liberty One Investment Management LLC boosted its stake in shares of Taiwan Semiconductor Manufacturing by 4.3% in the second quarter. Liberty One Investment Management LLC now owns 1,076 shares of the semiconductor company's stock worth $244,000 after buying an additional 44 shares during the last quarter. 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.