Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Up 1.5% on Analyst Upgrade

Key Points

• Taiwan Semiconductor Manufacturing's stock increased by 1.5% after an upgrade from Weiss Ratings, changing from a hold to a buy rating.
• Analysts have raised their price targets for the stock, with Needham & Company increasing theirs from $270.00 to $360.00 and Susquehanna moving theirs from $300.00 to $400.00.
• The company reported $2.92 earnings per share for the latest quarter, exceeding expectations and showing a 40.1% increase in revenue compared to the previous year.

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) rose 1.5% on Friday after Weiss Ratings upgraded the stock from a hold (c+) rating to a buy (b-) rating. The stock traded as high as $297.95 and last traded at $295.22. Approximately 8,713,309 shares changed hands during mid-day trading, a decline of 40% from the average daily volume of 14,568,396 shares. The stock had previously closed at $290.73.

Several other analysts also recently issued reports on TSM. Needham & Company LLC upped their price target on Taiwan Semiconductor Manufacturing from $270.00 to $360.00 and gave the stock a "buy" rating in a research note on Thursday, October 16th. Susquehanna upped their price target on Taiwan Semiconductor Manufacturing from $300.00 to $400.00 and gave the stock a "positive" rating in a research note on Friday, October 10th. Barclays upped their price target on Taiwan Semiconductor Manufacturing from $330.00 to $355.00 and gave the stock an "overweight" rating in a research note on Friday, October 17th. Wall Street Zen upgraded Taiwan Semiconductor Manufacturing from a "buy" rating to a "strong-buy" rating in a research note on Saturday, October 18th. Finally, Citigroup reiterated a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, October 17th. Six analysts have rated the stock with a Buy rating, According to MarketBeat, the stock has a consensus rating of "Buy" and an average price target of $371.67.

Institutional Trading of Taiwan Semiconductor Manufacturing

Hedge funds have recently added to or reduced their stakes in the business. 1248 Management LLC bought a new stake in shares of Taiwan Semiconductor Manufacturing in the 1st quarter worth approximately $28,000. Heartwood Wealth Advisors LLC bought a new stake in shares of Taiwan Semiconductor Manufacturing in the 3rd quarter worth approximately $32,000. Resources Management Corp CT ADV bought a new stake in shares of Taiwan Semiconductor Manufacturing in the 2nd quarter worth approximately $32,000. Graybill Wealth Management LTD. bought a new stake in shares of Taiwan Semiconductor Manufacturing in the 1st quarter worth approximately $33,000. Finally, Vision Financial Markets LLC bought a new stake in shares of Taiwan Semiconductor Manufacturing in the 1st quarter worth approximately $33,000. Institutional investors own 16.51% of the company's stock.

Taiwan Semiconductor Manufacturing Price Performance

The stock has a 50-day simple moving average of $266.23 and a 200 day simple moving average of $225.45. The company has a debt-to-equity ratio of 0.20, a quick ratio of 2.15 and a current ratio of 2.37. The company has a market cap of $1.53 trillion, a P/E ratio of 30.28, a P/E/G ratio of 0.97 and a beta of 1.28.

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, topping analysts' consensus estimates of $2.59 by $0.33. Taiwan Semiconductor Manufacturing had a return on equity of 36.06% and a net margin of 43.72%.The business had revenue of $32.36 billion during the quarter, compared to analysts' expectations of $951.89 billion. During the same period in the prior year, the firm posted $1.94 EPS. Taiwan Semiconductor Manufacturing'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, equities analysts expect 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. Investors of record on Thursday, December 11th will be issued a dividend of $0.8348 per share. The ex-dividend date of this dividend is Thursday, December 11th. This represents a $3.34 dividend on an annualized basis and a yield of 1.1%. This is a positive change from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.65. Taiwan Semiconductor Manufacturing's payout ratio is 26.67%.

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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