Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Down 1.7% - Here's Why

Key Points

• Taiwan Semiconductor Manufacturing's stock price declined by 1.7%, trading around $299.63, with trading volumes significantly higher than average.
• Analysts have a consensus rating of "Moderate Buy" for the company, with price targets ranging from $360 to $400 after recent upgrades from firms like Susquehanna and Needham & Company.
• The company reported earnings of $2.92 per share for the quarter, exceeding estimates, and announced a dividend increase to $0.8348 per share, boosting its annual yield to 1.1%.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report)'s share price traded down 1.7% during mid-day trading on Thursday . The company traded as low as $296.69 and last traded at $299.63. 26,045,836 shares were traded during mid-day trading, an increase of 78% from the average session volume of 14,621,190 shares. The stock had previously closed at $304.71.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on TSM. Weiss Ratings restated a "hold (c+)" rating on shares of Taiwan Semiconductor Manufacturing in a report on Wednesday, October 8th. Susquehanna boosted their price target on Taiwan Semiconductor Manufacturing from $300.00 to $400.00 and gave the company a "positive" rating in a research note on Friday, October 10th. Needham & Company LLC upped their target price on Taiwan Semiconductor Manufacturing from $270.00 to $360.00 and gave the stock a "buy" rating in a research report on Thursday. Itau BBA Securities initiated coverage on Taiwan Semiconductor Manufacturing in a research report on Tuesday, October 7th. They set an "outperform" rating on the stock. Finally, Wall Street Zen raised Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a research report on Sunday, August 31st. Five investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $363.33.

Taiwan Semiconductor Manufacturing Price Performance

The stock has a market cap of $1.55 trillion, a P/E ratio of 34.17, a P/E/G ratio of 1.41 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. The business has a 50 day simple moving average of $259.95 and a 200-day simple moving average of $219.85.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last announced its quarterly earnings data on Thursday, October 16th. The semiconductor company reported $2.92 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.59 by $0.33. The firm had revenue of $32.36 billion during the quarter, compared to the consensus estimate of $951.89 billion. Taiwan Semiconductor Manufacturing had a return on equity of 33.37% and a net margin of 42.91%.The business's revenue for the quarter was up 40.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.94 EPS. Taiwan Semiconductor Manufacturing has set its Q4 2025 guidance at EPS. On average, sell-side analysts forecast 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. Shareholders of record on Thursday, December 11th will be paid a $0.8348 dividend. This is a boost from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.65. The ex-dividend date is Thursday, December 11th. This represents a $3.34 dividend on an annualized basis and a yield of 1.1%. Taiwan Semiconductor Manufacturing's dividend payout ratio is currently 29.99%.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. 1248 Management LLC bought a new position in shares of Taiwan Semiconductor Manufacturing during the 1st quarter worth $28,000. Heartwood Wealth Advisors LLC bought a new position in shares of Taiwan Semiconductor Manufacturing during the 3rd quarter worth $32,000. Resources Management Corp CT ADV bought a new position in shares of Taiwan Semiconductor Manufacturing during the 2nd quarter worth $32,000. Graybill Wealth Management LTD. bought a new position in shares of Taiwan Semiconductor Manufacturing during the 1st quarter worth $33,000. Finally, Vision Financial Markets LLC bought a new position in shares of Taiwan Semiconductor Manufacturing during the 1st quarter worth $33,000. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.