Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading 3.6% Higher - Here's What Happened

Key Points

• Taiwan Semiconductor Manufacturing Company (TSM) shares increased by 3.6% to close at $304.66, after reaching a high of $306.40 during trading, with a total of 12,670,195 shares exchanged.
• Several analysts have set new price targets for TSM, with Barclays increasing theirs to $325.00 and five analysts recommending a buy rating.
• The company announced an increase in its quarterly dividend to $0.8348 per share, representing an annualized dividend of $3.34 and a yield of 1.1%.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) shares were up 3.6% during mid-day trading on Wednesday . The stock traded as high as $306.40 and last traded at $304.66. Approximately 12,670,195 shares traded hands during trading, a decline of 12% from the average daily volume of 14,458,108 shares. The stock had previously closed at $294.03.

Analysts Set New Price Targets

TSM has been the subject of a number of recent analyst reports. Barclays increased their price target on Taiwan Semiconductor Manufacturing from $275.00 to $325.00 and gave the company an "overweight" rating in a research report on Tuesday, September 16th. Wall Street Zen upgraded 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 objective on shares of Taiwan Semiconductor Manufacturing in a research note on Thursday, July 17th. Susquehanna lifted their price target on Taiwan Semiconductor Manufacturing from $255.00 to $265.00 and gave the stock a "positive" rating in a research report on Monday, July 14th. Finally, Itau BBA Securities began coverage on Taiwan Semiconductor Manufacturing in a research report on Tuesday. They issued an "outperform" rating on the stock. Five equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $286.67.

Taiwan Semiconductor Manufacturing Price Performance

The business has a 50 day simple moving average of $252.59 and a 200-day simple moving average of $214.99. The firm has a market cap of $1.58 trillion, a price-to-earnings ratio of 34.74, a P/E/G ratio of 1.44 and a beta of 1.28. The company has a debt-to-equity ratio of 0.20, a quick ratio of 2.15 and a current ratio of 2.37.

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. The business had revenue of $30.07 billion for the quarter, compared to the consensus estimate of $28.50 billion. Taiwan Semiconductor Manufacturing had a return on equity of 33.37% and a net margin of 42.91%.Taiwan Semiconductor Manufacturing's revenue for the quarter was up 44.4% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.48 earnings per share. Taiwan Semiconductor Manufacturing has set its Q3 2025 guidance at EPS. Equities research analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, January 8th. Stockholders of record on Thursday, December 11th will be issued a dividend of $0.8348 per share. 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 dividend yield of 1.1%. The ex-dividend date is Thursday, December 11th. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is currently 29.65%.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Institutional investors and hedge funds have recently made changes to their positions in the business. Catalyst Private Wealth LLC grew its position in shares of Taiwan Semiconductor Manufacturing by 2.8% in the third quarter. Catalyst Private Wealth LLC now owns 1,407 shares of the semiconductor company's stock valued at $393,000 after purchasing an additional 38 shares during the period. Venture Visionary Partners LLC grew its position in shares of Taiwan Semiconductor Manufacturing by 1.1% in the third quarter. Venture Visionary Partners LLC now owns 3,540 shares of the semiconductor company's stock valued at $989,000 after purchasing an additional 39 shares during the period. Alliance Wealth Advisors LLC grew its position in shares of Taiwan Semiconductor Manufacturing by 2.4% in the second quarter. Alliance Wealth Advisors LLC now owns 1,815 shares of the semiconductor company's stock valued at $411,000 after purchasing an additional 43 shares during the period. Pflug Koory LLC grew its position in shares of Taiwan Semiconductor Manufacturing by 3.9% in the second quarter. Pflug Koory LLC now owns 1,133 shares of the semiconductor company's stock valued at $257,000 after purchasing an additional 43 shares during the period. Finally, Frazier Financial Advisors LLC grew its position in shares of Taiwan Semiconductor Manufacturing by 9.1% in the second quarter. Frazier Financial Advisors LLC now owns 517 shares of the semiconductor company's stock valued at $117,000 after purchasing an additional 43 shares during the period. Institutional investors own 16.51% of the company's stock.

Taiwan Semiconductor Manufacturing Company Profile

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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