Stocks

Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Up 0.2% - Here's What Happened

Published November 9, 2024

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) experienced a slight increase in its stock price, trading up by 0.2% during midday on Friday. The stock reached a peak of $206.61 and was last traded at $201.50. Over 6.3 million shares were traded during this session, which is a 59% decrease from its average daily volume of approximately 15.5 million shares. The stock had closed at $201.19 the previous day.

Wall Street Analysts Forecast Growth

Recent assessments from several financial analysts reflect a positive outlook for TSM. TD Cowen has raised its price target for the company from $130.00 to $170.00, maintaining a "hold" rating. Furthermore, Needham & Company LLC upheld a "buy" rating and set a target price of $210.00 in a research report dated October 17. Barclays also revised its forecast, increasing the target price from $200.00 to $215.00 and assigning an "overweight" rating as of October 23. In addition, Susquehanna reiterated its "buy" rating on October 18. However, StockNews.com downgraded its recommendation from "buy" to "hold" on November 1. Presently, two analysts recommend holding the stock while four others recommend buying it. MarketBeat data indicates a consensus rating of "Moderate Buy" for TSM, with a consensus target price of $209.00.

Taiwan Semiconductor Manufacturing Stock Performance

The company's financial health appears strong, with a current ratio of 2.57, a quick ratio of 2.30, and a low debt-to-equity ratio of 0.23. TSM boasts a market capitalization of $1.05 trillion and a price-to-earnings ratio of 32.29, while the price-to-earnings-growth ratio stands at 0.93. The stock has a beta value of 1.12, indicating it may be somewhat more volatile than the broader market. Currently, the 50-day moving average is $181.89, and the 200-day moving average is $169.35.

Taiwan Semiconductor Manufacturing Increases Dividend

In a positive move for investors, TSM recently announced a quarterly dividend, scheduled to be paid on January 9th. Shareholders on record as of December 12th will receive a dividend of $0.4871 per share, slightly reduced from the previous quarterly amount of $0.49. This translates to an annualized dividend of $1.95, yielding approximately 0.97%. The ex-dividend date for this payment is also set for December 12th. The company's current dividend payout ratio is approximately 31.57%.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Recent activities by institutional investors suggest a robust interest in TSM's stock. Capital World Investors raised its stake by 1.7% in the first quarter, now owning over 42 million shares valued at around $5.7 billion after purchasing an additional 704,804 shares. Capital International Investors recorded a significant increase in its holdings by 40.2%, now owning approximately 19.7 million shares worth about $2.68 billion after an acquisition of over 5.6 million shares during the last quarter. Other firms like Van ECK Associates Corp and WCM Investment Management LLC have also increased their stakes, indicating overall confidence in TSM's performance. Currently, institutional and hedge fund ownership stands at around 16.51% of the company's stock.

About Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Company Limited, along with its subsidiaries, is engaged in the fabrication, packaging, testing, and selling of integrated circuits and other semiconductor devices globally, spanning regions such as Taiwan, China, Europe, the Middle East, Africa, Japan, and the United States. The company specializes in various wafer fabrication processes, including complementary metal-oxide-semiconductor (CMOS) logic, mixed-signal, and embedded memory production.