Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Up 3.9% – Should You Buy?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price rose 3.9% during trading on Monday . The company traded as high as $442.58 and last traded at $440.3540. Approximately 11,144,987 shares traded hands during trading, a decline of 19% from the average daily volume of 13,778,508 shares. The stock had previously closed at $423.93.

Analysts Set New Price Targets

TSM has been the subject of a number of research analyst reports. Weiss Ratings raised Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday, March 20th. Barclays increased their target price on Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the company an “overweight” rating in a report on Wednesday, April 22nd. Zacks Research cut Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “hold” rating in a report on Monday, March 16th. Wall Street Zen raised Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a report on Sunday, March 22nd. Finally, Needham & Company LLC increased their price target on Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the company a “buy” rating in a report on Thursday, April 16th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Buy” and an average target price of $404.29.

Taiwan Semiconductor Manufacturing Stock Performance

The company has a debt-to-equity ratio of 0.16, a current ratio of 2.49 and a quick ratio of 2.31. The stock has a market cap of $2.28 trillion, a price-to-earnings ratio of 36.64, a PEG ratio of 1.24 and a beta of 1.39. The firm has a fifty day moving average of $397.03 and a 200 day moving average of $353.17.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its quarterly earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 EPS for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 36.81% and a net margin of 46.97%.The firm had revenue of $30.65 billion during the quarter. As a group, sell-side analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.3 EPS for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Wednesday, September 16th will be paid a dividend of $1.1136 per share. This represents a $4.45 annualized dividend and a yield of 1.0%. This is a positive change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. The ex-dividend date of this dividend is Wednesday, September 16th. Taiwan Semiconductor Manufacturing’s payout ratio is 25.12%.

Insider Buying and Selling at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Tzu-Sou Chuang sold 200,000 shares of the firm’s stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $69.83, for a total transaction of $13,966,000.00. Following the completion of the sale, the vice president owned 2,495,165 shares of the company’s stock, valued at $174,237,371.95. This trade represents a 7.42% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Bor-Zen Tien bought 2,000 shares of the business’s stock in a transaction on Tuesday, May 19th. The shares were acquired at an average cost of $69.91 per share, with a total value of $139,820.00. Following the purchase, the vice president owned 11,051 shares of the company’s stock, valued at $772,575.41. The trade was a 22.10% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last three months, insiders have acquired 3,496 shares of company stock valued at $229,407. 1.11% of the stock is owned by insiders.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Several hedge funds and other institutional investors have recently added to or reduced their stakes in TSM. Shannon River Fund Management LLC purchased a new position in shares of Taiwan Semiconductor Manufacturing during the 3rd quarter worth $2,430,000. Capital Research Global Investors lifted its stake in shares of Taiwan Semiconductor Manufacturing by 66.3% during the 4th quarter. Capital Research Global Investors now owns 3,215,353 shares of the semiconductor company’s stock worth $976,821,000 after purchasing an additional 1,281,648 shares during the period. Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. purchased a new position in shares of Taiwan Semiconductor Manufacturing during the 4th quarter worth $961,000. Meridian Wealth Management LLC lifted its stake in shares of Taiwan Semiconductor Manufacturing by 27.9% during the 4th quarter. Meridian Wealth Management LLC now owns 65,974 shares of the semiconductor company’s stock worth $20,049,000 after purchasing an additional 14,406 shares during the period. Finally, Boyer Financial Services Inc. purchased a new position in shares of Taiwan Semiconductor Manufacturing during the 4th quarter worth $648,000. Institutional investors and hedge funds own 16.51% of the company’s stock.

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company (TSMC) is a leading pure-play semiconductor foundry that provides wafer fabrication and related services to the global semiconductor industry. Founded in 1987 by Morris Chang and headquartered in Hsinchu, Taiwan, TSMC manufactures integrated circuits on behalf of fabless and integrated device manufacturers, offering contract chip production across a broad set of technologies and products.

TSMC’s service offering covers logic and mixed-signal process technologies, specialty processes for radio-frequency, power management and embedded memory, and advanced nodes used in mobile, high-performance computing and AI applications.