Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Climb 1.4% – Should You Buy?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s stock price was up 1.4% on Monday. The stock traded as high as $428.85 and last traded at $424.3310. 9,498,235 shares traded hands during trading, a decline of 27% from the average daily volume of 13,053,974 shares. The stock had previously closed at $418.51.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on the stock. Sanford C. Bernstein upped their price target on shares of Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the stock an “outperform” rating in a research note on Tuesday, August 11th. Barclays raised their price objective on shares of Taiwan Semiconductor Manufacturing from $665.00 to $670.00 and gave the company an “overweight” rating in a research note on Friday, October 16th. Citigroup reaffirmed a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a report on Wednesday, October 7th. Zacks Research upgraded shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a research note on Thursday, July 16th. Finally, Stifel Nicolaus initiated coverage on shares of Taiwan Semiconductor Manufacturing in a research report on Tuesday, September 1st. They set a “buy” rating and a $515.00 price target for the company. Three research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Buy” and an average price target of $528.78.

Taiwan Semiconductor Manufacturing Price Performance

The company has a debt-to-equity ratio of 0.14, a current ratio of 2.46 and a quick ratio of 2.25. The company has a market capitalization of $2.20 trillion, a PE ratio of 27.31, a PEG ratio of 0.85 and a beta of 1.37. The firm has a 50-day moving average of $434.30 and a 200 day moving average of $420.70.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last issued its earnings results on Tuesday, September 8th. The semiconductor company reported $4.62 earnings per share for the quarter. The business had revenue of $46.87 billion during the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 42.84% and a net margin of 51.51%. As a group, research analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 17.07 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, January 7th. Investors of record on Thursday, December 10th will be given a dividend of $1.0854 per share. This represents a $4.34 dividend on an annualized basis and a yield of 1.0%. This is a negative change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. The ex-dividend date is Thursday, December 10th. Taiwan Semiconductor Manufacturing’s payout ratio is currently 22.27%.

Insider Activity at Taiwan Semiconductor Manufacturing

In related news, VP Lipen Yuan bought 350 shares of the business’s stock in a transaction on Tuesday, August 18th. The stock was acquired at an average price of $73.58 per share, with a total value of $25,753.00. Following the transaction, the vice president owned 2,000 shares in the company, valued at approximately $147,160. This trade represents a 21.21% increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this link. Also, VP Bor-Zen Tien bought 1,000 shares of the firm’s stock in a transaction on Monday, August 3rd. The shares were bought at an average price of $73.06 per share, with a total value of $73,060.00. Following the completion of the purchase, the vice president owned 14,051 shares in the company, valued at approximately $1,026,566.06. The trade was a 7.66% increase in their position. The SEC filing for this purchase provides additional information. Insiders purchased 8,043 shares of company stock worth $598,956 in the last 90 days. 1.11% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Tiger Global Management LLC grew its position in Taiwan Semiconductor Manufacturing by 49.4% during the first quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company’s stock valued at $1,880,717,000 after buying an additional 1,839,600 shares during the period. Sei Investments Co. grew its position in shares of Taiwan Semiconductor Manufacturing by 11.8% during the 1st quarter. Sei Investments Co. now owns 2,591,510 shares of the semiconductor company’s stock valued at $875,802,000 after acquiring an additional 274,389 shares during the period. Bessemer Group Inc. grew its position in shares of Taiwan Semiconductor Manufacturing by 7.9% during the 1st quarter. Bessemer Group Inc. now owns 1,781,764 shares of the semiconductor company’s stock valued at $602,147,000 after acquiring an additional 130,602 shares during the period. Assenagon Asset Management S.A. increased its stake in shares of Taiwan Semiconductor Manufacturing by 67.2% in the 3rd quarter. Assenagon Asset Management S.A. now owns 1,717,515 shares of the semiconductor company’s stock worth $783,513,000 after purchasing an additional 690,523 shares in the last quarter. Finally, AMF Tjanstepension AB raised its holdings in Taiwan Semiconductor Manufacturing by 6.4% in the 1st quarter. AMF Tjanstepension AB now owns 1,632,738 shares of the semiconductor company’s stock worth $551,784,000 after purchasing an additional 98,123 shares during the period. Institutional investors own 16.51% of the company’s stock.

About Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), commonly known as TSMC, is a dedicated semiconductor foundry headquartered in Hsinchu, Taiwan. The company manufactures integrated circuits for customers that design their own chips, allowing semiconductor, electronics, and technology companies to outsource production rather than operate their own fabrication facilities.

TSMC provides wafer fabrication services across a broad range of process technologies, including advanced nodes used in high-performance computing, smartphones, automotive systems, and artificial intelligence applications.