Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Up 4.1% Following Dividend Announcement

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s stock price shot up 4.1% on Wednesday following a dividend announcement from the company. The company traded as high as $416.80 and last traded at $412.7350. Approximately 14,181,320 shares changed hands during mid-day trading, an increase of 7% from the average session volume of 13,242,657 shares. The stock had previously closed at $396.48.

The newly announced dividend which will be paid on Thursday, April 8th. Shareholders of record on Thursday, March 11th will be given a dividend of $1.3663 per share. The ex-dividend date of this dividend is Thursday, March 11th. This is a positive change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.0854. This represents a $5.47 annualized dividend and a yield of 1.3%. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is currently 22.07%.

Wall Street Analyst Weigh In

Several research firms have weighed in on TSM. TD Cowen raised their target price on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the company a “hold” rating in a report on Friday, July 17th. Sanford C. Bernstein boosted their price target on Taiwan Semiconductor Manufacturing from $554.00 to $600.00 and gave the stock an “outperform” rating in a research report on Wednesday, November 4th. Citigroup reiterated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday, October 7th. DA Davidson reissued a “buy” rating and set a $500.00 price objective on shares of Taiwan Semiconductor Manufacturing in a report on Friday, October 16th. Finally, Weiss Ratings downgraded Taiwan Semiconductor Manufacturing from a “buy (b)” rating to a “hold (c+)” rating in a research note on Wednesday, November 4th. Three analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Buy” and a consensus target price of $533.89.

Taiwan Semiconductor Manufacturing Price Performance

The stock’s 50 day moving average price is $430.71 and its two-hundred day moving average price is $401.43. 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 firm has a market capitalization of $2.14 trillion, a price-to-earnings ratio of 26.56, a PEG ratio of 0.77 and a beta of 1.44.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its quarterly earnings data on Thursday, October 15th. The semiconductor company reported $4.60 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.45 by $0.15. Taiwan Semiconductor Manufacturing had a net margin of 51.51% and a return on equity of 42.84%. The business had revenue of $46.72 billion during the quarter, compared to the consensus estimate of $45.67 billion. During the same period in the prior year, the firm earned $2.92 EPS. Taiwan Semiconductor Manufacturing’s quarterly revenue was up 41.2% compared to the same quarter last year. On average, equities research analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 17.46 EPS for the current year.

Key Taiwan Semiconductor Manufacturing News

These are some of the TSM news items that stood out recently:

• Positive Sentiment: TSMC reported record October revenue of NT$586.89 billion, up 59.7% year over year and 14.7% from September. The sharp growth supports the view that demand for advanced chips is holding up. TSMC Stocks Climb After Record October Revenue
• Positive Sentiment: A broader chip-sector rally, helped by strong CoreWeave results that eased concerns about an AI-hardware slowdown, has provided additional support for semiconductor stocks. Chip Stocks Jump as CoreWeave Eases AI Fears
• Negative Sentiment: Strong sales may raise expectations for future results, leaving the stock vulnerable if AI demand or guidance disappoints. The proposed investments also carry risk and are not guaranteed to generate returns. Wedbush Says the Bar Is Set High

Insider Transactions at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Lipen Yuan purchased 1,000 shares of the stock in a transaction dated Sunday, November 1st. The shares were bought at an average cost of $71.49 per share, with a total value of $71,490.00. Following the completion of the transaction, the vice president owned 8,000 shares in the company, valued at $571,920. This trade represents a 14.29% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Michael R. Splinter acquired 840 shares of the company’s stock in a transaction dated Thursday, November 5th. The stock was acquired at an average price of $357.00 per share, for a total transaction of $299,880.00. Following the completion of the purchase, the director directly owned 8,405 shares of the company’s stock, valued at $3,000,585. This trade represents a 11.10% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have acquired 7,869 shares of company stock valued at $823,771 over the last 90 days. Corporate insiders own 1.11% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Tiger Global Management LLC boosted its position in shares of Taiwan Semiconductor Manufacturing by 49.4% in 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 acquiring an additional 1,839,600 shares during the period. Fundsmith LLP bought a new position in Taiwan Semiconductor Manufacturing during the second quarter worth $548,465,000. Assenagon Asset Management S.A. acquired a new position in Taiwan Semiconductor Manufacturing during the 2nd quarter valued at $490,461,000. Mirae Asset Global Investments Co. Ltd. acquired a new position in Taiwan Semiconductor Manufacturing during the 3rd quarter valued at $444,923,000. Finally, Aberdeen Group plc boosted its holdings in Taiwan Semiconductor Manufacturing by 449.6% in the 3rd quarter. Aberdeen Group plc now owns 642,465 shares of the semiconductor company’s stock valued at $293,086,000 after purchasing an additional 525,566 shares during the period. 16.51% of the stock is owned by institutional investors.

About Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Company (TSMC) is a semiconductor foundry that manufactures chips designed by other companies. It provides wafer fabrication and related services, including advanced packaging, serving customers across industries such as computing, communications, automotive and consumer electronics. Founded in 1987 and headquartered in Hsinchu, Taiwan, TSMC helped establish the dedicated foundry model, in which a manufacturer focuses on producing semiconductors for customers rather than selling its own chip designs.