Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading 5.7% Higher - Should You Buy?

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM - Get Free Report) shares were up 5.7% during trading on Monday . The stock traded as high as $189.13 and last traded at $186.62. Approximately 9,659,023 shares traded hands during mid-day trading, a decline of 39% from the average daily volume of 15,846,170 shares. The stock had previously closed at $176.52.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on TSM. StockNews.com lowered shares of Taiwan Semiconductor Manufacturing from a "buy" rating to a "hold" rating in a research note on Tuesday, January 28th. Susquehanna restated a "positive" rating on shares of Taiwan Semiconductor Manufacturing in a report on Friday, April 25th. Barclays reiterated a "hold" rating on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, April 25th. Finally, Needham & Company LLC reiterated a "buy" rating and set a $225.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research note on Thursday, April 17th. Three research analysts have rated the stock with a hold rating and three have given a buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $212.00.

Taiwan Semiconductor Manufacturing Stock Performance

The stock's 50 day moving average is $166.14 and its 200 day moving average is $187.43. The stock has a market capitalization of $1.01 trillion, a price-to-earnings ratio of 27.73, a PEG ratio of 0.66 and a beta of 1.21. The company has a current ratio of 2.57, a quick ratio of 2.30 and a debt-to-equity ratio of 0.24.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last issued its earnings results on Thursday, April 17th. The semiconductor company reported $2.12 earnings per share for the quarter, beating analysts' consensus estimates of $2.03 by $0.09. The firm had revenue of $25.82 billion for the quarter, compared to analysts' expectations of $834.10 billion. Taiwan Semiconductor Manufacturing had a return on equity of 30.47% and a net margin of 40.51%. On average, analysts predict that Taiwan Semiconductor Manufacturing Company Limited will post 9.2 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, July 10th. Stockholders of record on Thursday, June 12th will be issued a dividend of $0.6855 per share. This represents a $2.74 dividend on an annualized basis and a dividend yield of 1.40%. This is a positive change from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.55. The ex-dividend date is Thursday, June 12th. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is 27.76%.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Hedge funds have recently modified their holdings of the stock. Stonebridge Financial Group LLC acquired a new stake in shares of Taiwan Semiconductor Manufacturing in the fourth quarter worth $25,000. IMG Wealth Management Inc. acquired a new position in Taiwan Semiconductor Manufacturing during the fourth quarter worth $26,000. Hopwood Financial Services Inc. bought a new position in shares of Taiwan Semiconductor Manufacturing in the fourth quarter valued at approximately $27,000. Accredited Wealth Management LLC acquired a new position in Taiwan Semiconductor Manufacturing during the 4th quarter worth about $31,000. Finally, Roxbury Financial LLC bought a new stake in shares of Taiwan Semiconductor Manufacturing during the fourth quarter valued at approximately $29,000. 16.51% of the stock is owned by hedge funds and other 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.