Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 3.7% - Should You Sell?

Key Points

• Taiwan Semiconductor Manufacturing's (TSM) stock price dropped by 3.7%, closing at $293.58 on the latest trading day, with trading volume increasing by 8% from the daily average.
• Analysts have varied opinions, with Barclays and Susquehanna raising their target prices for TSM shares to $355 and $400 respectively, indicating overall optimism with a consensus rating of "Buy".
• The company announced an increase in its quarterly dividend to $0.8348 per share, up from the previous $0.65, benefiting shareholders with a growing income stream.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report)'s stock price was down 3.7% during trading on Tuesday . The company traded as low as $293.51 and last traded at $293.5840. Approximately 15,688,577 shares changed hands during mid-day trading, an increase of 8% from the average daily volume of 14,534,812 shares. The stock had previously closed at $304.86.

Analyst Ratings Changes

A number of equities research analysts have recently commented on TSM shares. Barclays upped their target price on shares of Taiwan Semiconductor Manufacturing from $330.00 to $355.00 and gave the company an "overweight" rating in a report on Friday, October 17th. Needham & Company LLC reaffirmed a "buy" rating and issued a $360.00 target price on shares of Taiwan Semiconductor Manufacturing in a report on Monday, October 27th. Susquehanna upped their target price on shares of Taiwan Semiconductor Manufacturing from $300.00 to $400.00 and gave the company a "positive" rating in a report on Friday, October 10th. Wall Street Zen cut shares of Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "buy" rating in a report on Saturday. Finally, Citigroup reissued a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a report on Friday, October 17th. Six equities research analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the company currently has a consensus rating of "Buy" and a consensus price target of $371.67.

Taiwan Semiconductor Manufacturing Stock Performance

The company has a quick ratio of 2.15, a current ratio of 2.37 and a debt-to-equity ratio of 0.20. The company has a market capitalization of $1.52 trillion, a PE ratio of 30.11, a PEG ratio of 1.02 and a beta of 1.28. The stock's fifty day simple moving average is $275.64 and its 200-day simple moving average is $234.34.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last issued its earnings results on Thursday, October 16th. The semiconductor company reported $2.92 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.59 by $0.33. Taiwan Semiconductor Manufacturing had a net margin of 43.72% and a return on equity of 36.06%. The company had revenue of $32.36 billion during the quarter, compared to analysts' expectations of $951.89 billion. During the same period last year, the company posted $1.94 earnings per share. The firm's quarterly revenue was up 40.1% compared to the same quarter last year. Taiwan Semiconductor Manufacturing has set its Q4 2025 guidance at EPS. On average, research analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, January 8th. Stockholders of record on Thursday, December 11th will be paid a dividend of $0.8348 per share. This is a positive change from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.65. The ex-dividend date of this dividend is Thursday, December 11th. This represents a $3.34 dividend on an annualized basis and a dividend yield of 1.1%. Taiwan Semiconductor Manufacturing's dividend payout ratio is 26.97%.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of TSM. New Vernon Capital Holdings II LLC increased its stake in shares of Taiwan Semiconductor Manufacturing by 16,500.0% during the 1st quarter. New Vernon Capital Holdings II LLC now owns 6,707,064 shares of the semiconductor company's stock worth $1,113,373,000 after purchasing an additional 6,666,660 shares in the last quarter. Goldman Sachs Group Inc. boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 55.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 17,306,108 shares of the semiconductor company's stock valued at $2,872,814,000 after purchasing an additional 6,180,445 shares during the last quarter. Nuveen LLC acquired a new position in shares of Taiwan Semiconductor Manufacturing in the 1st quarter valued at $482,676,000. Jennison Associates LLC boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 36.8% in the 1st quarter. Jennison Associates LLC now owns 9,509,032 shares of the semiconductor company's stock valued at $1,578,499,000 after purchasing an additional 2,559,512 shares during the last quarter. Finally, Alliancebernstein L.P. lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 31.5% during the 1st quarter. Alliancebernstein L.P. now owns 8,864,014 shares of the semiconductor company's stock valued at $1,471,426,000 after acquiring an additional 2,121,758 shares in the last quarter. 16.51% of the stock is 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.

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