Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 0.1% - What Should Investors Do?

The share price of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) saw a minor decline of 0.1% during mid-day trading on Tuesday. The stock reached a low of $183.87 before closing at $184.86. During this trading session, a total of 2,949,424 shares changed hands, which represents a significant drop of 81% from the average trading volume of 15,285,150 shares. The previous close was recorded at $185.08.

Analysts Offer Mixed Insights

Recent reports from various research analysts present a mixed outlook on Taiwan Semiconductor Manufacturing. StockNews.com has changed its rating from "buy" to "hold" as of November 17th. Meanwhile, Susquehanna reaffirmed their "buy" rating on October 18th. Needham & Company LLC kept a "buy" recommendation and set a target price of $210.00 on October 17th. Notably, Barclays has increased the target price from $215.00 to $240.00 while maintaining an "overweight" rating as of November 18th. Overall, market sentiment appears cautiously optimistic, with two analysts rating the stock "hold" and four rating it as a "buy." According to MarketBeat.com, the average rating is currently a "Moderate Buy" with a target price of $214.00.

Financial Overview

The stock has a debt-to-equity ratio of 0.24, a quick ratio of 2.30, and a current ratio of 2.57, indicating a strong liquidity position. The company boasts a market capitalization of $947.56 billion and has a price-to-earnings ratio of 29.63, along with a price-to-earnings-growth (PEG) ratio of 0.88. Its 50-day moving average sits at $188.24, while the 200-day moving average is $174.42.

Earnings Results and Future Projections

Taiwan Semiconductor Manufacturing reported its latest earnings on October 17th, posting an earnings per share (EPS) of $1.94, which exceeded analysts' consensus estimates of $1.74 by $0.20. The company's revenue for the quarter was $23.50 billion, surpassing expectations of $22.72 billion. The return on equity for the firm was an impressive 27.44%, alongside a net profit margin of 39.10%. Analysts forecast that Taiwan Semiconductor Manufacturing will achieve an EPS of 6.95 for the current fiscal year.

Dividend Increases and Shareholder Gains

A recent development for shareholders is the approved increase in the quarterly dividend, set to be paid on April 10th. Shareholders who are on record by March 18th will receive $0.5484 per share. This marks an increase from the previous quarterly dividend of $0.49, translating to an annual dividend of $2.19 and a yield of 1.20%. The payout ratio stands at 31.57%, indicating a stable dividend policy.

Institutional Investment Trends

Recent changes in institutional investment have been notable as hedge funds are actively buying and selling shares of Taiwan Semiconductor Manufacturing. For example, Atlantic Edge Private Wealth Management LLC purchased an interest in the company during the second quarter, valued at approximately $25,000. Several other firms, including Reston Wealth Management LLC and Valley Wealth Managers Inc., made similar acquisitions. Currently, institutional investors and hedge funds collectively hold 16.51% of the shares.

Company Profile

Taiwan Semiconductor Manufacturing Company Limited is a major player in the production of integrated circuits and other semiconductor products globally. It manufactures and sells a variety of semiconductor devices, providing wafer fabrication processes including CMOS logic, mixed-signal, and radio frequency products.

Taiwan, Semiconductor, Manufacturing