Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Up 3.4% - Here's What Happened

Key Points

• Taiwan Semiconductor Manufacturing Company (TSM) saw its stock price increase by 3.4% during mid-day trading, reaching a high of $290.48 before closing at $288.75.
• Wall Street analysts have raised their ratings on TSM, with Barclays increasing the price target from $275 to $325 and four analysts currently rating the stock as a Buy.
• The company announced a quarterly dividend increase to $0.8348, up from $0.65, which will be paid on January 8th, and has a current dividend yield of 1.2%.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report)'s stock price was up 3.4% during mid-day trading on Wednesday . The stock traded as high as $290.48 and last traded at $288.75. Approximately 14,586,784 shares were traded during mid-day trading, an increase of 1% from the average daily volume of 14,513,885 shares. The stock had previously closed at $279.29.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on the company. Wall Street Zen raised Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a research note on Sunday, August 31st. Barclays boosted their price target on shares of Taiwan Semiconductor Manufacturing from $275.00 to $325.00 and gave the company an "overweight" rating in a research note on Tuesday, September 16th. Susquehanna raised their price objective on shares of Taiwan Semiconductor Manufacturing from $255.00 to $265.00 and gave the company a "positive" rating in a research note on Monday, July 14th. Finally, Needham & Company LLC reissued a "buy" rating and set a $270.00 target price on shares of Taiwan Semiconductor Manufacturing in a research report on Thursday, July 17th. Four equities research analysts have rated the stock with a Buy rating, According to data from MarketBeat, the company currently has an average rating of "Buy" and a consensus target price of $286.67.

Taiwan Semiconductor Manufacturing Price Performance

The company has a market capitalization of $1.50 trillion, a P/E ratio of 32.92, a price-to-earnings-growth ratio of 1.30 and a beta of 1.23. The business's 50-day moving average is $247.50 and its two-hundred day moving average is $210.90. The company has a quick ratio of 2.15, a current ratio of 2.37 and a debt-to-equity ratio of 0.20.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last posted its quarterly earnings data on Thursday, July 17th. The semiconductor company reported $2.47 EPS for the quarter, beating the consensus estimate of $2.13 by $0.34. Taiwan Semiconductor Manufacturing had a net margin of 42.91% and a return on equity of 33.37%. The firm had revenue of $30.07 billion during the quarter, compared to analyst estimates of $28.50 billion. During the same quarter last year, the business posted $1.48 EPS. The company's revenue for the quarter was up 44.4% on a year-over-year basis. 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 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, January 8th. Shareholders of record on Thursday, December 11th will be given a $0.8348 dividend. This is an increase from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.65. This represents a $3.34 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend is Thursday, December 11th. Taiwan Semiconductor Manufacturing's payout ratio is presently 29.99%.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Several large investors have recently made changes to their positions in the business. Goldman Sachs Group Inc. increased its holdings in 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 buying an additional 6,180,445 shares during the last quarter. Bank of America Corp DE grew its position in shares of Taiwan Semiconductor Manufacturing by 0.8% during the 2nd quarter. Bank of America Corp DE now owns 14,805,720 shares of the semiconductor company's stock valued at $3,353,348,000 after acquiring an additional 115,158 shares during the period. Price T Rowe Associates Inc. MD increased its stake in shares of Taiwan Semiconductor Manufacturing by 19.1% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 12,350,239 shares of the semiconductor company's stock worth $2,050,141,000 after purchasing an additional 1,984,835 shares during the last quarter. Jennison Associates LLC raised its holdings in shares of Taiwan Semiconductor Manufacturing by 26.7% in the 2nd quarter. Jennison Associates LLC now owns 12,046,792 shares of the semiconductor company's stock worth $2,728,478,000 after purchasing an additional 2,537,760 shares during the period. Finally, Alliancebernstein L.P. lifted its stake in Taiwan Semiconductor Manufacturing by 18.0% in the second quarter. Alliancebernstein L.P. now owns 10,457,800 shares of the semiconductor company's stock valued at $2,368,587,000 after purchasing an additional 1,593,786 shares during the last quarter. 16.51% of the stock is owned by hedge funds and other institutional investors.

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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