Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Up 3.7% - Still a Buy?

Key Points

• Taiwan Semiconductor Manufacturing's stock saw a 3.7% increase, reaching a last traded price of $282.73, with a significant trading volume of 17,770,511 shares.
• Equities analysts have generally rated the stock as a "Buy," with Barclays increasing their price target from $275.00 to $325.00, indicating strong confidence in the company's performance.
• The company also announced an increase in its quarterly dividend to $0.8348 per share, up from $0.65, reflecting positive financial health and an annualized dividend yield of 1.2%.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) traded up 3.7% during trading on Tuesday . The company traded as high as $286.00 and last traded at $282.73. 17,770,511 shares traded hands during mid-day trading, an increase of 21% from the average session volume of 14,649,474 shares. The stock had previously closed at $272.63.

Analyst Upgrades and Downgrades

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

Taiwan Semiconductor Manufacturing Price Performance

The firm has a market capitalization of $1.47 trillion, a PE ratio of 32.24, a P/E/G ratio of 1.26 and a beta of 1.23. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.37 and a quick ratio of 2.15. The business's 50 day moving average is $242.83 and its two-hundred day moving average is $206.76.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last issued its quarterly earnings results on Thursday, July 17th. The semiconductor company reported $2.47 EPS for the quarter, topping analysts' consensus estimates 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 for the quarter, compared to analyst estimates of $28.50 billion. During the same quarter in the prior year, the firm earned $1.48 EPS. The business'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, research analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS 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. Stockholders of record on Thursday, December 11th will be paid a $0.8348 dividend. 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 1.2%. Taiwan Semiconductor Manufacturing's dividend payout ratio is currently 29.42%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Resources Management Corp CT ADV purchased a new stake in Taiwan Semiconductor Manufacturing during the 2nd quarter valued at about $32,000. Mid American Wealth Advisory Group Inc. bought a new stake in Taiwan Semiconductor Manufacturing in the second quarter valued at approximately $33,000. First Command Advisory Services Inc. boosted its stake in shares of Taiwan Semiconductor Manufacturing by 174.1% during the second quarter. First Command Advisory Services Inc. now owns 159 shares of the semiconductor company's stock valued at $36,000 after purchasing an additional 101 shares during the period. City Holding Co. grew its holdings in shares of Taiwan Semiconductor Manufacturing by 238.0% in the first quarter. City Holding Co. now owns 169 shares of the semiconductor company's stock worth $28,000 after purchasing an additional 119 shares during the last quarter. Finally, 1248 Management LLC purchased a new position in shares of Taiwan Semiconductor Manufacturing in the first quarter worth $28,000. 16.51% of the stock is owned by 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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