Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading 5.3% Higher - Still a Buy?

Key Points

• TSMC shares jumped 5.3% in Monday trading, briefly reaching $456.10 on volume above the daily average, as investors pushed the stock higher amid renewed optimism.
• Several analysts raised price targets and reiterated bullish ratings, including Susquehanna, Barclays, and Bank of America. The stock now carries a consensus Buy rating with an average target of $449.38.
• The company also increased its quarterly dividend to $1.1136 per share from $0.95, signaling continued financial strength; TSMC recently reported strong profitability with a 46.97% net margin.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) shares shot up 5.3% on Monday . The company traded as high as $456.10 and last traded at $455.2620. 14,811,869 shares changed hands during mid-day trading, an increase of 7% from the average session volume of 13,892,756 shares. The stock had previously closed at $432.35.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the company. Susquehanna increased their target price on Taiwan Semiconductor Manufacturing from $500.00 to $575.00 and gave the stock a "positive" rating in a research note on Monday, June 22nd. Barclays lifted their price target on Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the company an "overweight" rating in a research note on Wednesday, April 22nd. Bank of America upped their price objective on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the stock a "buy" rating in a report on Wednesday, June 24th. Wall Street Zen upgraded Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a research report on Sunday, March 22nd. Finally, Weiss Ratings reissued a "buy (b-)" rating on shares of Taiwan Semiconductor Manufacturing in a report on Wednesday, June 17th. Two analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Buy" and an average price target of $449.38.

Taiwan Semiconductor Manufacturing Stock Up 5.3%

The stock has a market capitalization of $2.36 trillion, a PE ratio of 37.88, a P/E/G ratio of 1.09 and a beta of 1.39. The firm has a 50 day moving average of $413.95 and a two-hundred day moving average of $363.83. The company has a current ratio of 2.49, a quick ratio of 2.31 and a debt-to-equity ratio of 0.16.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last posted its earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share for the quarter. The company had revenue of $30.65 billion for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 36.81% and a net margin of 46.97%. Equities research analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.35 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Wednesday, September 16th will be given a dividend of $1.1136 per share. The ex-dividend date is Wednesday, September 16th. This is an increase from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.95. This represents a $4.45 dividend on an annualized basis and a yield of 1.0%. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is presently 29.20%.

Insider Buying and Selling at Taiwan Semiconductor Manufacturing

In other news, VP Tzu-Sou Chuang sold 200,000 shares of the firm's stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $69.83, for a total transaction of $13,966,000.00. Following the completion of the transaction, the vice president directly owned 2,495,165 shares of the company's stock, valued at $174,237,371.95. This trade represents a 7.42% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP Lipen Yuan bought 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction that occurred on Monday, June 22nd. The stock was bought at an average cost of $79.19 per share, for a total transaction of $79,190.00. Following the purchase, the vice president owned 5,000 shares in the company, valued at $395,950. This represents a 25.00% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have acquired 4,496 shares of company stock valued at $327,927 over the last quarter. Corporate insiders own 1.11% of the company's stock.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

A number of institutional investors have recently made changes to their positions in the stock. Quattro Advisors LLC acquired a new stake in shares of Taiwan Semiconductor Manufacturing during the 4th quarter worth about $25,000. Hilton Head Capital Partners LLC purchased a new position in shares of Taiwan Semiconductor Manufacturing during the fourth quarter valued at approximately $27,000. Stephens Consulting LLC boosted its position in Taiwan Semiconductor Manufacturing by 82.0% during the fourth quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company's stock worth $28,000 after acquiring an additional 41 shares during the last quarter. Strategic Advocates LLC grew its stake in Taiwan Semiconductor Manufacturing by 62.1% in the 4th quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company's stock worth $28,000 after acquiring an additional 36 shares during the period. Finally, Ares Financial Consulting LLC purchased a new stake in Taiwan Semiconductor Manufacturing in the 4th quarter worth approximately $29,000. 16.51% of the stock is owned by institutional investors and hedge funds.

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company (TSMC) is a leading pure-play semiconductor foundry that provides wafer fabrication and related services to the global semiconductor industry. Founded in 1987 by Morris Chang and headquartered in Hsinchu, Taiwan, TSMC manufactures integrated circuits on behalf of fabless and integrated device manufacturers, offering contract chip production across a broad set of technologies and products.

TSMC's service offering covers logic and mixed-signal process technologies, specialty processes for radio-frequency, power management and embedded memory, and advanced nodes used in mobile, high-performance computing and AI applications.

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