Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading 1.8% Higher - What's Next?

Key Points

• Taiwan Semiconductor Manufacturing Company (TSM) saw a 1.8% increase in trading, reaching $239.47, with a notable decline in trading volume to 5 million shares, down 65% from the average.
• Equities analysts have a positive outlook for TSM, with several raising their price targets and an average consensus target price of $258.33.
• The company announced an increase in its quarterly dividend to $0.8348 per share, representing an annualized dividend yield of 1.4%, up from the previous quarterly dividend of $0.65.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) traded up 1.8% on Friday . The company traded as high as $241.91 and last traded at $239.47. 5,113,869 shares traded hands during trading, a decline of 65% from the average session volume of 14,681,930 shares. The stock had previously closed at $235.21.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on TSM shares. Susquehanna upped their price target on Taiwan Semiconductor Manufacturing from $255.00 to $265.00 and gave the company a "positive" rating in a research note on Monday, July 14th. Needham & Company LLC reissued a "buy" rating and set a $270.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research report on Thursday, July 17th. Wall Street Zen raised Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a research report on Sunday, August 31st. Barclays reissued an "overweight" rating and set a $240.00 price objective (up from $215.00) on shares of Taiwan Semiconductor Manufacturing in a research report 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 Trading Up 3.3%

The company has a fifty day simple moving average of $235.88 and a two-hundred day simple moving average of $200.59. The company has a current ratio of 2.37, a quick ratio of 2.15 and a debt-to-equity ratio of 0.20. The company has a market cap of $1.26 trillion, a PE ratio of 27.71, a P/E/G ratio of 1.10 and a beta of 1.23.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last issued its quarterly earnings results on Thursday, July 17th. The semiconductor company reported $2.47 earnings per share for the quarter, topping the consensus estimate 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 company had revenue of $30.07 billion for the quarter, compared to the consensus estimate of $28.50 billion. During the same quarter in the prior year, the business earned $1.48 EPS. Taiwan Semiconductor Manufacturing's revenue was up 44.4% on a year-over-year basis. Taiwan Semiconductor Manufacturing has set its Q3 2025 guidance at EPS. 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 issued a $0.8348 dividend. This represents a $3.34 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date is Thursday, December 11th. This is an increase from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.65. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is currently 28.16%.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the business. Goldman Sachs Group Inc. increased 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 acquiring an additional 6,180,445 shares during the last quarter. Bank of America Corp DE boosted its position in shares of Taiwan Semiconductor Manufacturing by 0.8% in 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 purchasing an additional 115,158 shares during the period. Price T Rowe Associates Inc. MD boosted its position in shares of Taiwan Semiconductor Manufacturing by 19.1% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 12,350,239 shares of the semiconductor company's stock valued at $2,050,141,000 after purchasing an additional 1,984,835 shares during the period. Jennison Associates LLC boosted its position 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 valued at $2,728,478,000 after purchasing an additional 2,537,760 shares during the period. Finally, Alliancebernstein L.P. boosted its position in shares of Taiwan Semiconductor Manufacturing by 18.0% in the 2nd 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 period. Hedge funds and other institutional investors 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.

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