Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Up 1.6% - Should You Buy?

Key Points

• Taiwan Semiconductor Manufacturing Company (TSM) stock increased by 1.6%, trading at around $232.06 with a significant drop in trading volume, down 85% from the average.
• Analysts have given TSM a consensus "Buy" rating with target prices ranging from $240 to $270, indicating strong investor confidence in the company's future.
• The company has announced a boost in its quarterly dividend to $0.8348, reflecting a 1.5% annualized dividend yield and an increase from the previous payout of $0.65.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) rose 1.6% during mid-day trading on Wednesday . The company traded as high as $232.45 and last traded at $232.06. Approximately 2,273,547 shares were traded during mid-day trading, a decline of 85% from the average daily volume of 14,760,781 shares. The stock had previously closed at $228.39.

Analyst Ratings Changes

TSM has been the subject of a number of research analyst reports. Susquehanna upped their target price on Taiwan Semiconductor Manufacturing from $255.00 to $265.00 and gave the company a "positive" rating in a research report on Monday, July 14th. Wall Street Zen raised Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a report on Sunday, August 31st. Needham & Company LLC reissued a "buy" rating and issued a $270.00 price target on shares of Taiwan Semiconductor Manufacturing in a report on Thursday, July 17th. Barclays reaffirmed an "overweight" rating and issued a $240.00 price objective (up from $215.00) on shares of Taiwan Semiconductor Manufacturing in a research note on Tuesday, June 3rd. Finally, Citigroup reissued a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research report on Thursday, May 22nd. Four equities research analysts have rated the stock with a Buy rating, According to MarketBeat, Taiwan Semiconductor Manufacturing presently has an average rating of "Buy" and a consensus target price of $258.33.

Taiwan Semiconductor Manufacturing Stock Up 3.3%

The stock has a market cap of $1.26 trillion, a price-to-earnings ratio of 27.71, a PEG ratio of 1.12 and a beta of 1.23. 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 stock has a fifty day moving average of $236.17 and a two-hundred day moving average of $200.87.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last issued its earnings results on Thursday, July 17th. The semiconductor company reported $2.47 earnings per share for the quarter, beating analysts' consensus estimates of $2.13 by $0.34. Taiwan Semiconductor Manufacturing had a return on equity of 33.37% and a net margin of 42.91%.The firm had revenue of $30.07 billion for the quarter, compared to analysts' expectations of $28.50 billion. During the same quarter last year, the firm earned $1.48 earnings per share. The firm's revenue for the quarter was up 44.4% compared to the same quarter last year. Taiwan Semiconductor Manufacturing has set its Q3 2025 guidance at EPS. As a group, analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, January 8th. Investors of record on Thursday, December 11th will be issued a $0.8348 dividend. The ex-dividend date is Thursday, December 11th. This is an increase from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.65. This represents a $3.34 dividend on an annualized basis and a yield of 1.4%. Taiwan Semiconductor Manufacturing's payout ratio is 28.16%.

Institutional Inflows and Outflows

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