Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Down 1.1% - Should You Sell?

Key Points

• Taiwan Semiconductor Manufacturing Company's shares fell by 1.1%, trading at $294.53, with a significant 24% decline in trading volume compared to the average.
• Analysts have issued a consensus rating of "Moderate Buy" with a price target of $371.67, with some firms increasing their target prices significantly.
• The company recently announced a quarterly dividend increase, raising it from $0.65 to $0.8348 per share, representing an annual yield of 1.1%.

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) dropped 1.1% during trading on Tuesday . The stock traded as low as $293.66 and last traded at $294.53. Approximately 11,082,767 shares were traded during trading, a decline of 24% from the average daily volume of 14,609,169 shares. The stock had previously closed at $297.70.

Analyst Ratings Changes

TSM has been the topic of several research analyst reports. Needham & Company LLC increased their target price on shares of Taiwan Semiconductor Manufacturing from $270.00 to $360.00 and gave the stock a "buy" rating in a research note on Thursday, October 16th. Citigroup reaffirmed a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research note on Friday. Weiss Ratings reissued a "hold (c+)" rating on shares of Taiwan Semiconductor Manufacturing in a research report on Wednesday, October 8th. Itau BBA Securities initiated coverage on Taiwan Semiconductor Manufacturing in a research note on Tuesday, October 7th. They issued an "outperform" rating for the company. Finally, Barclays upped their price target on Taiwan Semiconductor Manufacturing from $330.00 to $355.00 and gave the stock an "overweight" rating in a research note on Friday. Five research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat, Taiwan Semiconductor Manufacturing has an average rating of "Moderate Buy" and a consensus price target of $371.67.

Taiwan Semiconductor Manufacturing Price Performance

The business's fifty day moving average price is $263.28 and its 200-day moving average price is $223.51. The stock has a market capitalization of $1.53 trillion, a price-to-earnings ratio of 30.21, a PEG ratio of 1.02 and a beta of 1.28. The company has a debt-to-equity ratio of 0.20, 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, October 16th. The semiconductor company reported $2.92 EPS for the quarter, beating the consensus estimate of $2.59 by $0.33. The firm had revenue of $32.36 billion during the quarter, compared to analyst estimates of $951.89 billion. Taiwan Semiconductor Manufacturing had a net margin of 43.72% and a return on equity of 36.06%. The company's revenue for the quarter was up 40.1% on a year-over-year basis. During the same quarter last year, the business posted $1.94 EPS. Taiwan Semiconductor Manufacturing has set its Q4 2025 guidance at EPS. On average, research analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, January 8th. Investors of record on Thursday, December 11th will be issued a dividend of $0.8348 per share. 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 yield of 1.1%. Taiwan Semiconductor Manufacturing's payout ratio is currently 26.67%.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Several hedge funds and other institutional investors have recently modified their holdings of TSM. 1248 Management LLC bought a new stake in Taiwan Semiconductor Manufacturing during the 1st quarter worth approximately $28,000. Heartwood Wealth Advisors LLC bought a new position in shares of Taiwan Semiconductor Manufacturing in the third quarter worth $32,000. Resources Management Corp CT ADV purchased a new stake in shares of Taiwan Semiconductor Manufacturing in the second quarter worth $32,000. Graybill Wealth Management LTD. bought a new stake in Taiwan Semiconductor Manufacturing during the first quarter valued at $33,000. Finally, Vision Financial Markets LLC purchased a new position in Taiwan Semiconductor Manufacturing during the first quarter worth about $33,000. 16.51% of the stock is currently owned by institutional investors.

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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