Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Up 3% - Time to Buy?

Key Points

• Shares of Taiwan Semiconductor Manufacturing Company (NYSE: TSM) rose by 3% to a trading price of $272.75, with a significant volume of approximately 14.81 million shares changing hands.
• The company has received multiple upgrades from analysts, with target prices now ranging from $265 to $325, and a consensus rating of "Buy".
• Taiwan Semiconductor Manufacturing declared a quarterly dividend of $0.8348 per share, reflecting an increase from the previous amount, which is set to provide a 1.2% dividend yield to shareholders.

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) were up 3% on Monday . The company traded as high as $276.36 and last traded at $272.75. Approximately 14,812,451 shares traded hands during trading, an increase of 1% from the average daily volume of 14,627,446 shares. The stock had previously closed at $264.87.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on the company. Susquehanna boosted their target price on Taiwan Semiconductor Manufacturing from $255.00 to $265.00 and gave the stock a "positive" rating in a research report on Monday, July 14th. Needham & Company LLC reaffirmed a "buy" rating and issued a $270.00 price target on shares of Taiwan Semiconductor Manufacturing in a research note on Thursday, July 17th. Wall Street Zen raised Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a research note on Sunday, August 31st. Finally, Barclays increased their target price on Taiwan Semiconductor Manufacturing from $275.00 to $325.00 and gave the stock an "overweight" rating in a research note on Tuesday, September 16th. Four investment analysts have rated the stock with a Buy rating, Based on data from MarketBeat, Taiwan Semiconductor Manufacturing currently has an average rating of "Buy" and a consensus price target of $286.67.

Taiwan Semiconductor Manufacturing Trading Up 3.0%

The stock has a market cap of $1.41 trillion, a PE ratio of 31.10, a PEG ratio of 1.26 and a beta of 1.23. 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 stock has a fifty day moving average price of $241.95 and a 200 day moving average price of $206.09.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last posted its quarterly earnings data on Thursday, July 17th. The semiconductor company reported $2.47 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 company had revenue of $30.07 billion during the quarter, compared to analysts' expectations of $28.50 billion. During the same quarter in the previous year, the business earned $1.48 EPS. Taiwan Semiconductor Manufacturing's revenue was up 44.4% compared to the same quarter last year. Taiwan Semiconductor Manufacturing has set its Q3 2025 guidance at EPS. Equities analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, January 8th. Stockholders of record on Thursday, December 11th will be given a $0.8348 dividend. This represents a $3.34 annualized dividend and a dividend yield of 1.2%. 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 dividend payout ratio is presently 29.99%.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. DekaBank Deutsche Girozentrale increased its holdings in shares of Taiwan Semiconductor Manufacturing by 0.9% in the first quarter. DekaBank Deutsche Girozentrale now owns 1,339,479 shares of the semiconductor company's stock valued at $214,442,000 after purchasing an additional 11,693 shares during the period. Quantbot Technologies LP boosted its stake in shares of Taiwan Semiconductor Manufacturing by 452.2% in the first quarter. Quantbot Technologies LP now owns 47,425 shares of the semiconductor company's stock worth $7,873,000 after buying an additional 38,837 shares during the last quarter. Duquesne Family Office LLC boosted its position in Taiwan Semiconductor Manufacturing by 456.9% during the first quarter. Duquesne Family Office LLC now owns 598,780 shares of the semiconductor company's stock worth $99,397,000 after purchasing an additional 491,265 shares in the last quarter. Sentry LLC purchased a new position in Taiwan Semiconductor Manufacturing during the first quarter worth approximately $222,000. Finally, RFG Holdings Inc. boosted its position in Taiwan Semiconductor Manufacturing by 66.1% during the second quarter. RFG Holdings Inc. now owns 3,898 shares of the semiconductor company's stock worth $883,000 after purchasing an additional 1,551 shares in the last quarter. 16.51% of the stock is owned by institutional investors and hedge funds.

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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