Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Up 5% Following Insider Buying Activity

Key Points

• TSMC shares rose 5% after an insider purchase was disclosed, with Vice President Bor-Zen Tien buying 1,000 shares at an average price of $76.64. The stock briefly hit $479 and traded above its prior close amid heavier-than-normal volume.
• Analysts remain broadly bullish on Taiwan Semiconductor Manufacturing, citing strong AI-related demand and higher price targets from firms like Susquehanna and Needham. MarketBeat notes the stock has a consensus “Buy” rating and an average target price of $449.38.
• The company continues to show strong fundamentals, including a recent quarterly EPS of $3.11, revenue of $30.65 billion, and a dividend increase to $1.1136 per share. TSMC also remains a key beneficiary of the AI capex boom, with investors closely watching semiconductor sector strength.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report)'s share price was up 5% on Tuesday following insider buying activity. The stock traded as high as $479.00 and last traded at $477.8530. Approximately 14,838,684 shares changed hands during mid-day trading, an increase of 7% from the average daily volume of 13,918,268 shares. The stock had previously closed at $455.10.

Specifically, VP Bor-Zen Tien bought 1,000 shares of the firm's stock in a transaction that occurred on Monday, June 29th. The shares were acquired at an average cost of $76.64 per share, with a total value of $76,640.00. Following the completion of the transaction, the vice president owned 12,051 shares of the company's stock, valued at approximately $923,588.64. The trade was a 9.05% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website.

Analyst Upgrades and Downgrades

TSM has been the subject of several research analyst reports. Zacks Research lowered shares of Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "hold" rating in a research report on Monday, March 16th. Wall Street Zen upgraded shares of Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a report on Sunday, March 22nd. Susquehanna boosted their price objective on shares of Taiwan Semiconductor Manufacturing from $500.00 to $575.00 and gave the company a "positive" rating in a research note on Monday, June 22nd. Weiss Ratings restated a "buy (b-)" rating on shares of Taiwan Semiconductor Manufacturing in a report on Wednesday, June 17th. Finally, Needham & Company LLC increased their target price on Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the stock a "buy" rating in a research report on Thursday, April 16th. Two analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, Taiwan Semiconductor Manufacturing has a consensus rating of "Buy" and an average target price of $449.38.

Key Taiwan Semiconductor Manufacturing News

Here are the key news stories impacting Taiwan Semiconductor Manufacturing this week:

• Positive Sentiment: Analysts are increasingly bullish on TSMC, with one note saying the stock could rise another 25% on continued AI-driven demand. The AI Boom Could Cause TSMC (TSM) Stock to Rally Another 25%
• Positive Sentiment: TSMC is being highlighted as a major beneficiary of the AI capex boom, alongside other chipmakers expected to gain from rising spending on chips, memory, and testing. 4 Semiconductor Stocks to Buy Right Now to Ride on the AI Capex Boom
• Positive Sentiment: Semiconductor stocks are receiving broad market support as the sector’s weighting in the S&P 500 reaches a record level, reinforcing investor confidence in the industry’s AI-led growth outlook. Semiconductor stocks climb to record 19.7% of the S&P 500 as AI rally reshapes the index
• Positive Sentiment: TSMC also drew a small vote of confidence from an insider purchase by Vice President Bor-Zen Tien, which can signal internal belief in the company’s outlook. SEC insider filing
• Neutral Sentiment: Recent commentary says investors may be taking a breather after the stock’s strong run, with premarket weakness framed more as consolidation near record highs than a shift in fundamentals. What's Going On With Taiwan Semiconductor Stock Tuesday?
• Neutral Sentiment: TSMC continues to attract investor attention and remains broadly rated a “Buy” by analysts, but this is more a confirmation of existing optimism than a new catalyst. Taiwan Semiconductor Manufacturing Company Ltd. (TSM) is Attracting Investor Attention: Here is What You Should Know

Taiwan Semiconductor Manufacturing Stock Up 5.0%

The stock has a fifty day moving average price of $415.79 and a 200-day moving average price of $364.90. The firm has a market cap of $2.48 trillion, a PE ratio of 39.75, a PEG ratio of 1.09 and a beta of 1.39. The company has a debt-to-equity ratio of 0.16, a quick ratio of 2.31 and a current ratio of 2.49.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last posted its quarterly earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 EPS for the quarter. The firm had revenue of $30.65 billion for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 46.97% and a return on equity of 36.81%. Research analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.35 EPS for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 8th. Stockholders of record on Wednesday, September 16th will be given a $1.1136 dividend. The ex-dividend date of this dividend is Wednesday, September 16th. This is an increase from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.95. This represents a $4.45 annualized dividend and a dividend yield of 0.9%. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is currently 25.12%.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

A number of hedge funds have recently made changes to their positions in the business. Shannon River Fund Management LLC purchased a new stake in Taiwan Semiconductor Manufacturing during the 3rd quarter worth approximately $2,430,000. Capital Research Global Investors raised its position in shares of Taiwan Semiconductor Manufacturing by 66.3% in the 4th quarter. Capital Research Global Investors now owns 3,215,353 shares of the semiconductor company's stock valued at $976,821,000 after purchasing an additional 1,281,648 shares in the last quarter. Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. acquired a new position in shares of Taiwan Semiconductor Manufacturing in the 4th quarter valued at approximately $961,000. Meridian Wealth Management LLC boosted its stake in shares of Taiwan Semiconductor Manufacturing by 27.9% during the 4th quarter. Meridian Wealth Management LLC now owns 65,974 shares of the semiconductor company's stock valued at $20,049,000 after buying an additional 14,406 shares during the last quarter. Finally, Boyer Financial Services Inc. purchased a new position in shares of Taiwan Semiconductor Manufacturing during the 4th quarter valued at approximately $648,000. Hedge funds and other institutional investors own 16.51% of the company's stock.

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company (TSMC) is a leading pure-play semiconductor foundry that provides wafer fabrication and related services to the global semiconductor industry. Founded in 1987 by Morris Chang and headquartered in Hsinchu, Taiwan, TSMC manufactures integrated circuits on behalf of fabless and integrated device manufacturers, offering contract chip production across a broad set of technologies and products.

TSMC's service offering covers logic and mixed-signal process technologies, specialty processes for radio-frequency, power management and embedded memory, and advanced nodes used in mobile, high-performance computing and AI applications.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.