Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 0.1% - Here's What Happened

On Tuesday, shares of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) experienced a slight decline of 0.1% in mid-day trading. The stock price dipped to as low as $183.87 before recovering to a last traded price of $184.86. During this session, a total of 2,949,424 shares were traded, representing a significant decrease of 81% from the average trading volume of 15,285,150 shares. The previous close for the stock had been $185.08.

Wall Street Analysts Forecast Growth

Several analysts have recently provided their insights on the stock. StockNews.com downgraded the rating for Taiwan Semiconductor Manufacturing from "buy" to "hold" in a report released on Sunday, November 17th. However, other firms expressed a more positive outlook. Susquehanna reaffirmed a "buy" rating on October 18th, while Needham & Company issued a "buy" rating along with a price target of $210.00 on October 17th. Additionally, Barclays raised its price target from $215.00 to $240.00 and classified the stock as "overweight" on November 18th. Currently, two analysts hold a "hold" rating, while four recommend buying the stock, resulting in an average rating of "Moderate Buy" and an average target price of $214.00 according to MarketBeat.com.

Taiwan Semiconductor Manufacturing Financial Overview

The company's financial metrics show a debt-to-equity ratio of 0.24, with a quick ratio of 2.30 and a current ratio of 2.57. Taiwan Semiconductor Manufacturing boasts a market capitalization of $947.56 billion and shows a price-to-earnings ratio of 29.63. Moreover, analysts project earnings of 6.95 per share for the current year. The firm reported earnings per share of $1.94 in its last earnings announcement on October 17th, surpassing analysts' expectations of $1.74. Furthermore, the company achieved revenue of $23.50 billion for the quarter, compared to the anticipated $22.72 billion, and it reported a return on equity of 27.44% with a net margin of 39.10%.

Dividend Announcement and Shareholder Benefits

Recently, Taiwan Semiconductor Manufacturing declared an increase in its quarterly dividend, which will be distributed on April 10th. Shareholders recorded on March 18th will receive a dividend of $0.5484, which marks an improvement from the previous quarterly dividend of $0.49. This translates to an annualized dividend of $2.19, reflecting a yield of 1.20%, with a payout ratio of 31.57%.

Hedge Funds Activity

Recent activity among hedge funds indicates a dynamic interest in Taiwan Semiconductor Manufacturing. Atlantic Edge Private Wealth Management LLC, for instance, began acquiring shares of the company in the second quarter with a stake worth $25,000. Other firms like Reston Wealth Management LLC and Valley Wealth Managers Inc. also established new positions with valuations around $25,000 and $27,000 respectively. Currently, institutional investors and hedge funds hold approximately 16.51% of the stock.

Company Profile

Taiwan Semiconductor Manufacturing Company Limited, along with its subsidiaries, operates in the semiconductor sector, specializing in manufacturing, packaging, testing, and selling integrated circuits and semiconductor devices globally. The company provides various wafer fabrication processes, including advanced technologies in CMOS logic, mixed-signal, and embedded memory, among others.

Final Thoughts on Taiwan Semiconductor Manufacturing

In summary, despite a slight decline in stock price, Taiwan Semiconductor Manufacturing continues to show robust financial performance and growth potential, backed by strong earnings results and analyst ratings. Investors should consider both the current market conditions and the company's fundamentals when making their investment decisions.

Taiwan, Semiconductors, Stocks