Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading 4.9% Higher - Time to Buy?

Key Points

• Taiwan Semiconductor Manufacturing Company shares rose by 4.9% to $242.62, though trading volume decreased by 34% compared to its average.
• Analysts maintain a generally positive outlook on TSM, with ratings including "buy" and "overweight," along with several increased target prices, averaging around $258.33.
• Quarterly earnings outperformed expectations, with $2.47 EPS reported, and the company showed a significant revenue increase of 44.4% year-over-year.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report)'s share price shot up 4.9% during mid-day trading on Thursday . The stock traded as high as $247.84 and last traded at $242.62. 10,107,041 shares were traded during trading, a decline of 34% from the average session volume of 15,302,896 shares. The stock had previously closed at $231.37.

Wall Street Analyst Weigh In

Several analysts have weighed in on TSM shares. Needham & Company LLC reissued a "buy" rating and issued a $270.00 price target on shares of Taiwan Semiconductor Manufacturing in a research note on Thursday, July 17th. Citigroup reissued a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research report on Thursday, May 22nd. Barclays reaffirmed an "overweight" rating and set a $240.00 price objective (up from $215.00) on shares of Taiwan Semiconductor Manufacturing in a research note on Tuesday, June 3rd. Finally, 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 report on Monday, July 14th. One research analyst has rated the stock with a hold rating and four have given a buy rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $258.33.

Taiwan Semiconductor Manufacturing Price Performance

The firm has a market cap of $1.26 trillion, a PE ratio of 27.63, a price-to-earnings-growth ratio of 1.12 and a beta of 1.19. The firm has a 50-day simple moving average of $224.53 and a 200 day simple moving average of $196.54. The company has a debt-to-equity ratio of 0.18, a current ratio of 2.37 and a quick ratio of 2.15.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last posted its quarterly earnings data 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 32.87% and a net margin of 42.91%. The company had revenue of $30.07 billion during the quarter, compared to analyst estimates of $28.50 billion. During the same quarter last year, the company earned $1.48 EPS. The firm's revenue for the quarter was up 44.4% on a year-over-year basis. As a group, equities analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 9th. Investors of record on Tuesday, September 16th will be issued a $0.6499 dividend. This represents a $2.60 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend is Tuesday, September 16th. Taiwan Semiconductor Manufacturing's dividend payout ratio is currently 29.65%.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Future Fund LLC grew its stake in Taiwan Semiconductor Manufacturing by 10.2% during the second quarter. Future Fund LLC now owns 3,778 shares of the semiconductor company's stock valued at $856,000 after acquiring an additional 351 shares in the last quarter. Midwest Trust Co bought a new position in Taiwan Semiconductor Manufacturing during the second quarter valued at approximately $3,326,000. Flossbach Von Storch SE raised its holdings in shares of Taiwan Semiconductor Manufacturing by 12.6% during the 2nd quarter. Flossbach Von Storch SE now owns 316,397 shares of the semiconductor company's stock worth $71,661,000 after acquiring an additional 35,401 shares in the last quarter. Prescott Group Capital Management L.L.C. raised its stake in Taiwan Semiconductor Manufacturing by 88.9% during the second quarter. Prescott Group Capital Management L.L.C. now owns 12,386 shares of the semiconductor company's stock valued at $2,805,000 after purchasing an additional 5,828 shares in the last quarter. Finally, Acadian Asset Management LLC increased its stake in Taiwan Semiconductor Manufacturing by 5.6% during the second quarter. Acadian Asset Management LLC now owns 85,702 shares of the semiconductor company's stock worth $19,408,000 after acquiring an additional 4,550 shares during the last quarter. 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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