Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading 0.1% Higher - What's Next?

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) saw its shares rise by 0.1% on Tuesday. The stock reached a high of $206.26 before closing at $201.66. During mid-day trading, around 4,576,224 shares were exchanged, marking a significant decline of 68% from the average daily volume of 14,188,593 shares. The stock had recently closed at $201.36.

Analyst Ratings Changes

Positive Outlook Amid Geopolitical Risks

Several brokerages have recently updated their ratings on TSM. Barclays raised its target price for Taiwan Semiconductor Manufacturing from $215.00 to $240.00, maintaining an "overweight" rating in a research note dated November 18th. Additionally, Susquehanna reiterated a "buy" rating on the stock on October 18th. In contrast, StockNews.com downgraded the stock from a "buy" to a "hold" rating as of November 17th. Meanwhile, Needham & Company reaffirmed a "buy" rating and set a target price of $225.00 in a report published on Thursday. Currently, two analysts have rated the stock as a hold, while four have given it a buy rating. According to MarketBeat.com, Taiwan Semiconductor Manufacturing holds a consensus rating of "Moderate Buy" with an average target price of $217.00.

Taiwan Semiconductor Manufacturing Price Performance

The company's market capitalization stands at $1.12 trillion, with a price-to-earnings (P/E) ratio of 34.46 and a price-to-earnings-growth (PEG) ratio of 0.76, reflecting growth potential. The stock has a beta of 1.07, indicating moderate volatility. Its fifty-day moving average is $197.53, while the 200-day moving average sits at $183.96. The firm has a debt-to-equity ratio of 0.24, a quick ratio of 2.30, and a current ratio of 2.57.

Taiwan Semiconductor Manufacturing recently reported its quarterly earnings on January 16th, revealing earnings per share (EPS) of $2.24, surpassing the consensus estimate of $2.16 by $0.08. The company boasts a net margin of 39.10% and a return on equity of 27.44%. Analysts predict that Taiwan Semiconductor Manufacturing will post an EPS of 6.92 for the current fiscal year.

Dividend Increase

Positive Dividend Update

The board of directors recently announced an increase in the quarterly dividend, which is set to be paid on April 10th. Shareholders of record as of March 18th will receive a dividend of $0.5484 per share, translating to an annualized dividend of $2.19 and a dividend yield of 1.02%. This increase is a positive shift from the previous quarterly dividend of $0.49. Taiwan Semiconductor Manufacturing's current dividend payout ratio (DPR) is 35.10%.

Institutional Investors' Movements

Recent activity among institutional investors shows significant changes in holdings of Taiwan Semiconductor Manufacturing. WealthPLAN Partners LLC initiated a new position valued around $250,000 in the second quarter. Axxcess Wealth Management LLC increased its holdings by 55.6% during this period, now owning 11,164 shares worth approximately $1,940,000 after adding 3,991 shares. Wealth Alliance also increased its stake by 31.6%, resulting in ownership of 16,976 shares valued at $2,951,000 after acquiring an additional 4,080 shares. Central Asset Investments & Management Holdings HK Ltd raised its holdings by an impressive 318.6%, now owning 120,768 shares worth $20,991,000 after purchasing 91,918 shares in the prior quarter. Additionally, Lingotto Investment Management LLP boosted its stake by 37.0%, owning 185,000 shares valued at $32,155,000 post the acquisition of 50,000 shares. Currently, 16.51% of the stock is held by institutional investors and hedge funds.

About Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Company Limited, along with its subsidiaries, engages in the manufacture, packaging, testing, and sale of integrated circuits and other semiconductor devices. It operates across Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and beyond. The company offers various wafer fabrication processes, producing complementary metal-oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, bipolar CMOS mixed-signal, and more.

TSMC, Stocks, Dividends