Taiwan Semiconductor Manufacturing (NYSE: TSM) Trading Up 3.3%: What's Next?

Shares of Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) saw a significant increase of 3.3% on Monday. The stock reached a high of $181.97 before settling at $182.59. In total, around 4,076,849 shares exchanged hands, marking a drop of 73% from the average daily volume of 15,012,566 shares. Previously, the stock had closed at $176.73.

Analysts Set New Price Targets

Recent reports from various research firms have updated their price targets for Taiwan Semiconductor Manufacturing. Barclays boosted its price target from $240.00 to $255.00 and assigned an "overweight" rating to the stock in a report released on January 17. Additionally, Needham & Company LLC reaffirmed a "buy" rating with a target price of $225.00 in a statement on February 18. However, StockNews.com adjusted its rating, lowering Taiwan Semiconductor Manufacturing from a "buy" to a "hold" rating as of January 28. In total, two analysts have rated the stock as a hold, while four have given it a buy rating. According to MarketBeat, the overall consensus for the stock is a "Moderate Buy" with an average price target of $220.00.

Taiwan Semiconductor Manufacturing Stock Performance

The company maintains strong financial ratios, including a quick ratio of 2.30 and a current ratio of 2.57, indicating solid liquidity. Its debt-to-equity ratio stands at 0.24. The 50-day simple moving average for the stock is $195.68, and its 200-day simple moving average is $192.33. Taiwan Semiconductor's market capitalization is approximately $943.77 billion, with a price-to-earnings ratio of 25.85 and a price-to-earnings-growth ratio of 0.66. The stock has a beta of 1.13, reflecting its volatility compared to the market. In its latest earnings report on January 16, Taiwan Semiconductor recorded an EPS of $2.24 for the quarter, surpassing the expected consensus of $2.16 by $0.08. The company achieved a return on equity of 30.47% and a net margin of 40.51%. Analysts predict an EPS of 9.2 for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

On a positive note, Taiwan Semiconductor recently declared a quarterly dividend of $0.6855, which will be distributed on July 10. Shareholders recorded before June 12 are eligible to receive this dividend, equating to an annualized dividend of $2.74 and a yield of 1.51%. This marks an increase from the previous quarterly dividend of $0.55, with a payout ratio currently at 30.68%.

Institutional Trading Activity

Several institutional investors have recently adjusted their holdings in Taiwan Semiconductor. Stonebridge Financial Group LLC entered a new stake during the fourth quarter, valued at around $25,000. Similarly, IMG Wealth Management Inc. and Hopwood Financial Services Inc. also acquired new positions worth approximately $26,000 and $27,000, respectively. Roxbury Financial LLC secured a new stake valued at about $29,000, while Accredited Wealth Management LLC bought in at roughly $31,000. Notably, institutional investors currently hold 16.51% of the stock.

About Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Company Limited, along with its subsidiaries, is involved in the manufacturing, packaging, testing, and selling of integrated circuits and other semiconductor products globally. Its operations extend across regions including Taiwan, China, Europe, the Middle East, Africa, Japan, and the United States. The company offers a comprehensive range of wafer fabrication processes, which encompass manufacturing technologies for various semiconductor types, such as CMOS logic and mixed-signal.

Taiwan, Semiconductor, TSM