Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Falls 1.5% – Here’s What Happened

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price was down 1.5% during mid-day trading on Friday. The stock traded as low as $391.50 and last traded at $399.5020. 10,644,705 shares were traded during mid-day trading, a decline of 20% from the average daily volume of 13,224,182 shares. The stock had previously closed at $405.49.

Taiwan Semiconductor Manufacturing News Roundup

Here’s some of the latest news about TSM:

• Positive Sentiment: The company announced an approximately 41% year-over-year increase in its ADS dividend, to about $1.37 per ADS. The higher payout signals confidence alongside strong sales, though withholding taxes reduce what some investors receive. Article: Taiwan Semiconductor and Two Other AI Infrastructure Leaders Are Boosting Dividends
• Neutral Sentiment: NVIDIA’s reported leadership upheaval could encourage cloud companies to diversify chip suppliers, potentially benefiting TSMC as a manufacturer for NVIDIA and other chip designers. However, the uncertainty has rattled semiconductor stocks, and investors are watching NVIDIA’s November 17 results for clues about AI demand. Article: Checkmate for AI Chips? NVIDIA’s Crisis Opens the Board
• Negative Sentiment: TSMC confirmed that personal information belonging to some current and former employees was accessed through a cloud provider. Reports that hackers are demanding bitcoin to withhold the records add reputational and potential security concerns. Article: TSMC Confirms Employee Data Leak Through Cloud Provider

Wall Street Analyst Weigh In

Several research analysts recently commented on the stock. Barclays lifted their target price on shares of Taiwan Semiconductor Manufacturing from $665.00 to $670.00 and gave the stock an “overweight” rating in a research note on Friday, October 16th. Wall Street Zen cut shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 8th. TD Cowen raised their price target on shares of Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the stock a “hold” rating in a report on Friday, July 17th. Needham & Company LLC boosted their price objective on shares of Taiwan Semiconductor Manufacturing from $530.00 to $560.00 and gave the company a “buy” rating in a research report on Thursday, October 15th. Finally, DA Davidson reaffirmed a “buy” rating and set a $500.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, October 16th. Three research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Buy” and an average target price of $533.89.

Taiwan Semiconductor Manufacturing Trading Down 1.5%

The company has a debt-to-equity ratio of 0.14, a quick ratio of 2.25 and a current ratio of 2.46. The stock has a market capitalization of $2.07 trillion, a P/E ratio of 25.71, a price-to-earnings-growth ratio of 0.82 and a beta of 1.44. The stock has a 50-day moving average price of $430.47 and a two-hundred day moving average price of $402.19.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last announced its quarterly earnings results on Thursday, October 15th. The semiconductor company reported $4.60 EPS for the quarter, topping analysts’ consensus estimates of $4.45 by $0.15. The company had revenue of $46.72 billion during the quarter, compared to analyst estimates of $45.67 billion. Taiwan Semiconductor Manufacturing had a return on equity of 42.84% and a net margin of 51.51%. The firm’s revenue was up 41.2% on a year-over-year basis. During the same quarter last year, the firm posted $2.92 earnings per share. On average, research analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 17.36 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, April 8th. Stockholders of record on Thursday, March 11th will be given a $1.3663 dividend. The ex-dividend date of this dividend is Thursday, March 11th. This represents a $5.47 annualized dividend and a dividend yield of 1.4%. This is a positive change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.0854. Taiwan Semiconductor Manufacturing’s dividend payout ratio is 22.27%.

Insider Activity

In related news, VP Lipen Yuan purchased 1,000 shares of the firm’s stock in a transaction that occurred on Sunday, November 1st. The stock was bought at an average cost of $71.49 per share, with a total value of $71,490.00. Following the completion of the purchase, the vice president directly owned 8,000 shares in the company, valued at approximately $571,920. This represents a 14.29% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Michael R. Splinter acquired 840 shares of the stock in a transaction on Thursday, November 5th. The stock was bought at an average price of $357.00 per share, with a total value of $299,880.00. Following the completion of the acquisition, 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 ownership of the stock. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders bought 7,869 shares of company stock valued at $823,771. Corporate insiders own 1.11% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Brookstone Capital Management grew its holdings in Taiwan Semiconductor Manufacturing by 87.3% in the second quarter. Brookstone Capital Management now owns 25,143 shares of the semiconductor company’s stock worth $12,008,000 after purchasing an additional 11,719 shares during the period. Opal Capital LLC grew its stake in shares of Taiwan Semiconductor Manufacturing by 72.5% in the first quarter. Opal Capital LLC now owns 27,767 shares of the semiconductor company’s stock worth $9,384,000 after acquiring an additional 11,666 shares during the period. Western Wealth Management LLC raised its stake in Taiwan Semiconductor Manufacturing by 27.4% during the 1st quarter. Western Wealth Management LLC now owns 27,954 shares of the semiconductor company’s stock valued at $9,447,000 after buying an additional 6,013 shares during the last quarter. MRA Advisory Group purchased a new stake in Taiwan Semiconductor Manufacturing during the third quarter valued at $704,000. Finally, Cantor Fitzgerald Investment Advisors L.P. bought a new position in shares of Taiwan Semiconductor Manufacturing in the 3rd quarter worth approximately $6,129,000. Institutional investors own 16.51% of the company’s stock.

Taiwan Semiconductor Manufacturing Company Profile

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.