Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Down 2.7% - Should You Sell?

Key Points

• Taiwan Semiconductor Manufacturing Company shares fell by 2.7% to $231.82, with a significant drop in trading volume, down 69% from average daily levels.
• Despite the decline, several analysts maintain a "buy" rating, with price targets ranging from $240.00 to $270.00 and a consensus target price of $258.33.
• The company recently announced a dividend increase to $0.8348 per share, reflecting a boost from the previous dividend and indicating ongoing financial health.

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) were down 2.7% on Friday . The stock traded as low as $230.63 and last traded at $231.82. Approximately 4,637,480 shares were traded during trading, a decline of 69% from the average daily volume of 14,773,528 shares. The stock had previously closed at $238.27.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on TSM shares. Citigroup restated a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research note on Thursday, May 22nd. Susquehanna boosted their price objective on Taiwan Semiconductor Manufacturing from $255.00 to $265.00 and gave the company a "positive" rating in a research note on Monday, July 14th. Barclays reiterated an "overweight" rating and issued a $240.00 price objective (up previously from $215.00) on shares of Taiwan Semiconductor Manufacturing in a research note on Tuesday, June 3rd. Needham & Company LLC reiterated a "buy" rating and issued a $270.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research note on Thursday, July 17th. Finally, Wall Street Zen cut Taiwan Semiconductor Manufacturing from a "buy" rating to a "hold" rating in a research note on Saturday, August 23rd. Four investment analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, Taiwan Semiconductor Manufacturing has an average rating of "Buy" and a consensus target price of $258.33.

Taiwan Semiconductor Manufacturing Price Performance

The company has a debt-to-equity ratio of 0.20, a current ratio of 2.37 and a quick ratio of 2.15. The company has a 50 day moving average price of $234.47 and a 200 day moving average price of $199.68. The firm has a market cap of $1.20 trillion, a PE ratio of 26.46, a PEG ratio of 1.14 and a beta of 1.19.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last released its quarterly earnings results on Thursday, July 17th. The semiconductor company reported $2.47 EPS for the quarter, topping the consensus estimate of $2.13 by $0.34. Taiwan Semiconductor Manufacturing had a return on equity of 33.37% and a net margin of 42.91%.The business had revenue of $30.07 billion during the quarter, compared to analysts' expectations of $28.50 billion. During the same quarter in the prior year, the business earned $1.48 earnings per share. The company's quarterly revenue was up 44.4% compared to the same quarter last year. Taiwan Semiconductor Manufacturing has set its Q3 2025 guidance at EPS. Sell-side analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm 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 boost from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.65. This represents a $3.34 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date of this dividend is Thursday, December 11th. Taiwan Semiconductor Manufacturing's dividend payout ratio is currently 28.16%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. DekaBank Deutsche Girozentrale grew its holdings in Taiwan Semiconductor Manufacturing by 0.9% during the first quarter. DekaBank Deutsche Girozentrale now owns 1,339,479 shares of the semiconductor company's stock worth $214,442,000 after acquiring an additional 11,693 shares during the period. Pinnacle Investment Management Ltd acquired a new position in Taiwan Semiconductor Manufacturing during the fourth quarter worth $26,661,000. Quantbot Technologies LP grew its holdings in Taiwan Semiconductor Manufacturing by 452.2% during the first quarter. Quantbot Technologies LP now owns 47,425 shares of the semiconductor company's stock worth $7,873,000 after acquiring an additional 38,837 shares during the period. Sentry LLC acquired a new stake in Taiwan Semiconductor Manufacturing in the first quarter valued at $222,000. Finally, In Depth Partners LLC grew its holdings in Taiwan Semiconductor Manufacturing by 36.1% in the first quarter. In Depth Partners LLC now owns 73,757 shares of the semiconductor company's stock valued at $12,244,000 after purchasing an additional 19,547 shares during the last quarter. Institutional investors and hedge funds 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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