Traders Buy Large Volume of Taiwan Semiconductor Manufacturing Call Options (NYSE:TSM)

Key Points

• Traders acquired 949,962 call options for Taiwan Semiconductor Manufacturing, marking a 675% increase compared to the usual daily volume of 122,562 call options.
• The company reported $2.47 earnings per share for the last quarter, exceeding estimates of $2.13, and achieved revenue of $30.07 billion, significantly higher than the anticipated $28.50 billion.
• Taiwan Semiconductor Manufacturing is increasing its quarterly dividend to $0.8348 per share, up from the previous $0.65, reflecting a commitment to returning value to shareholders.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) saw some unusual options trading on Monday. Traders acquired 949,962 call options on the company. This represents an increase of 675% compared to the typical daily volume of 122,562 call options.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

A number of institutional investors have recently added to or reduced their stakes in TSM. City Holding Co. boosted its holdings in Taiwan Semiconductor Manufacturing by 238.0% during the first quarter. City Holding Co. now owns 169 shares of the semiconductor company's stock valued at $28,000 after purchasing an additional 119 shares in the last quarter. 1248 Management LLC acquired a new position in shares of Taiwan Semiconductor Manufacturing in the 1st quarter worth approximately $28,000. Signature Resources Capital Management LLC boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 138.8% in the 1st quarter. Signature Resources Capital Management LLC now owns 191 shares of the semiconductor company's stock worth $32,000 after acquiring an additional 111 shares in the last quarter. Resources Management Corp CT ADV acquired a new position in shares of Taiwan Semiconductor Manufacturing in the 2nd quarter worth approximately $32,000. Finally, Graybill Wealth Management LTD. acquired a new position in shares of Taiwan Semiconductor Manufacturing in the 1st quarter worth approximately $33,000. 16.51% of the stock is owned by institutional investors and hedge funds.

Taiwan Semiconductor Manufacturing Stock Performance

TSM stock traded up $1.47 during midday trading on Monday, reaching $260.80. The company had a trading volume of 8,135,425 shares, compared to its average volume of 10,630,542. 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 has a 50 day moving average price of $238.56 and a 200 day moving average price of $203.12. Taiwan Semiconductor Manufacturing has a fifty-two week low of $134.25 and a fifty-two week high of $264.58. The firm has a market capitalization of $1.35 trillion, a PE ratio of 29.74, a P/E/G ratio of 1.23 and a beta of 1.23.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last issued its quarterly earnings results 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. The firm had revenue of $30.07 billion during the quarter, compared to analyst estimates of $28.50 billion. Taiwan Semiconductor Manufacturing had a return on equity of 33.37% and a net margin of 42.91%.The firm's quarterly revenue was up 44.4% on a year-over-year basis. During the same period last year, the company posted $1.48 EPS. Taiwan Semiconductor Manufacturing has set its Q3 2025 guidance at EPS. Analysts anticipate that Taiwan Semiconductor Manufacturing will post 9.2 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, January 8th. Investors of record on Thursday, December 11th will be issued a $0.8348 dividend. This is a boost from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.65. This represents a $3.34 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date is Thursday, December 11th. Taiwan Semiconductor Manufacturing's dividend payout ratio is currently 28.16%.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the company. Susquehanna lifted their price objective on Taiwan Semiconductor Manufacturing from $255.00 to $265.00 and gave the company a "positive" rating in a report on Monday, July 14th. Needham & Company LLC restated a "buy" rating and set a $270.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research report 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. Barclays reissued an "overweight" rating and set a $240.00 price target (up previously from $215.00) on shares of Taiwan Semiconductor Manufacturing in a research note on Tuesday, June 3rd. Finally, Citigroup reissued a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research note on Thursday, May 22nd. Four investment analysts have rated the stock with a Buy rating, According to data from MarketBeat, the company currently has a consensus rating of "Buy" and a consensus target price of $258.33.

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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