Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Up 1.5% - What's Next?

Key Points

• Taiwan Semiconductor Manufacturing's share price increased by 1.5%, closing at $292.42, despite a 27% decline in trading volume from its average.
• Barclays raised its target price for TSM from $275 to $325, while analysts rate the stock as a Moderate Buy with a consensus price target of $286.67.
• The company announced a quarterly dividend of $0.8348 per share, up from the previous dividend of $0.65, reflecting a commitment to returning value to shareholders.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report)'s share price was up 1.5% during mid-day trading on Friday . The stock traded as high as $296.06 and last traded at $292.42. Approximately 10,534,220 shares changed hands during trading, a decline of 27% from the average daily volume of 14,475,738 shares. The stock had previously closed at $288.11.

Analyst Ratings Changes

A number of research firms have recently issued reports on TSM. Weiss Ratings reiterated a "hold (c+)" rating on shares of Taiwan Semiconductor Manufacturing in a research note on Saturday, September 27th. Barclays increased their target price on Taiwan Semiconductor Manufacturing from $275.00 to $325.00 and gave the company an "overweight" rating in a research report on Tuesday, September 16th. Susquehanna raised their price objective 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. Needham & Company LLC reaffirmed a "buy" rating and set a $270.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research report on Thursday, July 17th. Finally, Wall Street Zen upgraded shares of Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a report on Sunday, August 31st. Four analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $286.67.

Taiwan Semiconductor Manufacturing Stock 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 firm has a market cap of $1.52 trillion, a price-to-earnings ratio of 33.34, a P/E/G ratio of 1.37 and a beta of 1.28. The firm has a fifty day simple moving average of $250.34 and a two-hundred day simple moving average of $213.03.

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

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, January 8th. Shareholders of record on Thursday, December 11th will be given a dividend of $0.8348 per share. 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%. This is an increase from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.65. Taiwan Semiconductor Manufacturing's payout ratio is presently 29.42%.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

A number of institutional investors and hedge funds have recently modified their holdings of the company. Goldman Sachs Group Inc. lifted its stake in Taiwan Semiconductor Manufacturing by 55.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 17,306,108 shares of the semiconductor company's stock valued at $2,872,814,000 after acquiring an additional 6,180,445 shares during the period. Bank of America Corp DE lifted its position in Taiwan Semiconductor Manufacturing by 0.8% during the second quarter. Bank of America Corp DE now owns 14,805,720 shares of the semiconductor company's stock valued at $3,353,348,000 after purchasing an additional 115,158 shares during the period. Price T Rowe Associates Inc. MD lifted its position in Taiwan Semiconductor Manufacturing by 19.1% during the first quarter. Price T Rowe Associates Inc. MD now owns 12,350,239 shares of the semiconductor company's stock valued at $2,050,141,000 after purchasing an additional 1,984,835 shares during the period. Jennison Associates LLC lifted its position in Taiwan Semiconductor Manufacturing by 26.7% during the second quarter. Jennison Associates LLC now owns 12,046,792 shares of the semiconductor company's stock valued at $2,728,478,000 after purchasing an additional 2,537,760 shares during the period. Finally, Alliancebernstein L.P. lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 18.0% in the 2nd quarter. Alliancebernstein L.P. now owns 10,457,800 shares of the semiconductor company's stock valued at $2,368,587,000 after buying an additional 1,593,786 shares during the period. 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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