Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 0.9% - Here's Why

Shares of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) experienced a decline of 0.9% during mid-day trading on Tuesday. The stock dipped to a low of $200.52 before last trading at $201.96. In total, 6,271,476 shares changed hands, marking a significant 64% drop from the average trading volume of 17,352,859 shares. The previous closing price was $203.90.

Analysts Set New Price Targets

Various research firms have recently issued updates regarding TSM. Barclays increased its price target for Taiwan Semiconductor Manufacturing from $240.00 to $255.00, maintaining an "overweight" rating in a report dated January 17th. Conversely, StockNews.com downgraded the company from a "buy" rating to a "hold" on January 28th. Needham & Company LLC reaffirmed a "buy" rating, setting a price target of $225.00 on January 28th. 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 has a consensus rating of "Moderate Buy" and an average price target of $220.00.

Taiwan Semiconductor Manufacturing Stock Down 0.5%

The company reports a debt-to-equity ratio of 0.24, with a quick ratio of 2.30 and a current ratio of 2.57. The stock's 50-day moving average stands at $205.68, while the 200-day moving average is $190.15. Taiwan Semiconductor Manufacturing boasts a market capitalization of $1.04 trillion, a P/E ratio of 28.40, a price-to-earnings-growth (PEG) ratio of 0.67, and a beta of 1.06.

The company disclosed its quarterly earnings on January 16th, reporting earnings per share (EPS) of $2.24. This figure surpassed analysts' consensus expectation of $2.16 by $0.08. Notably, Taiwan Semiconductor Manufacturing had a return on equity of 30.47% and a net margin of 40.51%. Analysts forecast that the company will achieve 9.2 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

Recently, the firm declared a quarterly dividend that will be distributed on July 10th. Shareholders on record as of June 12th will receive $0.6855 per share, an increase from the previous quarterly dividend of $0.55. This hike translates to an annualized dividend of $2.74, yielding 1.37%. The ex-dividend date is set for June 12th. The dividend payout ratio currently stands at 31.11%.

Institutional Trading of Taiwan Semiconductor Manufacturing

Institutional investors have been adjusting their positions regarding the stock. Price T Rowe Associates Inc. MD increased its stake in Taiwan Semiconductor Manufacturing by 67.0% in the fourth quarter, now holding 10,365,404 shares worth approximately $2.05 billion after acquiring 4,158,772 additional shares. Similarly, FMR LLC expanded its holdings by 7.2% in Q3, owning 55,974,769 shares valued at $9.72 billion following a purchase of 3,783,802 shares. Jennison Associates LLC raised its position by 72.9%, now owning 6,949,520 shares valued at roughly $1.37 billion. Franklin Resources Inc. amplified its stake by 32.3%, resulting in 8,498,063 shares worth about $1.68 billion. Lastly, Northern Trust Corp added 1,944,328 shares, increasing its holdings by 45.2%. Institutional investors collectively hold 16.51% of the company's stock.

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. Their operations span various regions including Taiwan, China, Europe, the Middle East, Africa, Japan, and the United States. The company offers a variety of wafer fabrication processes tailored for manufacturing diverse semiconductor technologies, including complementary metal-oxide-semiconductor (CMOS) logic.

Should You Invest $1,000 in Taiwan Semiconductor Manufacturing Right Now?

Before considering an investment in Taiwan Semiconductor Manufacturing, it's crucial to evaluate your options. MarketBeat monitors recommendations made by top analysts, identifying stocks deemed better investments than TSM. Currently, while TSM has a "Moderate Buy" rating, top analysts suggest five other stocks that may present better investment opportunities.

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