Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Up 1.6% - Should You Buy?

Key Points

• Taiwan Semiconductor Manufacturing Company (TSM) shares increased by 1.6% to $251.08, with a significant drop in trading volume compared to its average.
• Wall Street analysts have a consensus rating of "Buy" for TSM, with various price targets ranging from $240 to $270.
• The company recently announced a quarterly dividend of $0.8348 per share, marking an increase from its previous dividend, and has a payout ratio of 28.16%.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report)'s share price was up 1.6% on Tuesday . The stock traded as high as $252.38 and last traded at $251.08. Approximately 5,438,424 shares changed hands during mid-day trading, a decline of 63% from the average daily volume of 14,670,607 shares. The stock had previously closed at $247.19.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on TSM shares. Wall Street Zen raised shares of Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a report on Sunday, August 31st. Needham & Company LLC reiterated a "buy" rating and issued a $270.00 target price on shares of Taiwan Semiconductor Manufacturing in a research report on Thursday, July 17th. Barclays restated an "overweight" rating and set a $240.00 price target (up from $215.00) on shares of Taiwan Semiconductor Manufacturing in a research report on Tuesday, June 3rd. Susquehanna upped their price target on shares of Taiwan Semiconductor Manufacturing from $255.00 to $265.00 and gave the company a "positive" rating in a research report on Monday, July 14th. Finally, Citigroup restated a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research report on Thursday, May 22nd. Four investment analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and an average price target of $258.33.

Taiwan Semiconductor Manufacturing Trading Up 2.6%

The company has a quick ratio of 2.15, a current ratio of 2.37 and a debt-to-equity ratio of 0.20. The stock's fifty day moving average price is $236.57 and its two-hundred day moving average price is $201.22. The company has a market capitalization of $1.31 trillion, a PE ratio of 28.92, a price-to-earnings-growth ratio of 1.16 and a beta of 1.23.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last posted its earnings results on Thursday, July 17th. The semiconductor company reported $2.47 earnings per share 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 analyst estimates 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 in the prior year, the business posted $1.48 earnings per share. Taiwan Semiconductor Manufacturing has set its Q3 2025 guidance at EPS. Sell-side analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently disclosed 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. This represents a $3.34 annualized dividend and a yield of 1.3%. The ex-dividend date of this dividend is Thursday, December 11th. This is a positive change from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.65. Taiwan Semiconductor Manufacturing's payout ratio is presently 28.16%.

Institutional Trading of Taiwan Semiconductor Manufacturing

Several large investors have recently bought and sold shares of TSM. Brighton Jones LLC boosted its position in Taiwan Semiconductor Manufacturing by 20.9% during the 4th quarter. Brighton Jones LLC now owns 10,930 shares of the semiconductor company's stock valued at $2,159,000 after acquiring an additional 1,892 shares in the last quarter. Fiduciary Trust Co boosted its position in Taiwan Semiconductor Manufacturing by 6.5% during the 4th quarter. Fiduciary Trust Co now owns 4,428 shares of the semiconductor company's stock valued at $874,000 after acquiring an additional 271 shares in the last quarter. Ensign Peak Advisors Inc increased its stake in shares of Taiwan Semiconductor Manufacturing by 578.7% during the fourth quarter. Ensign Peak Advisors Inc now owns 27,004 shares of the semiconductor company's stock valued at $5,333,000 after purchasing an additional 23,025 shares in the last quarter. Focus Partners Wealth increased its stake in shares of Taiwan Semiconductor Manufacturing by 6.4% during the fourth quarter. Focus Partners Wealth now owns 78,143 shares of the semiconductor company's stock valued at $15,825,000 after purchasing an additional 4,676 shares in the last quarter. Finally, Investor s Fiduciary Advisor Network LLC bought a new stake in shares of Taiwan Semiconductor Manufacturing during the fourth quarter valued at approximately $316,000. 16.51% of the stock is owned by institutional investors.

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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