Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Up 2.1% - What's Next?

Shares of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) experienced a 2.1% increase on Tuesday, bringing the stock to a price as high as $205.75 before settling at $203.90. During the trading session, around 5,510,743 shares changed hands, which is significantly lower than the average daily volume of 19,455,125 shares. The stock had previously closed at $199.80.

Wall Street Analysts Forecast Growth

The outlook for TSM remains positive, even amid rising geopolitical risks. Several analysts have provided insights into the stock's performance. On October 18th, Susquehanna affirmed a "buy" rating for Taiwan Semiconductor Manufacturing. Similarly, Needham & Company LLC also holds a "buy" rating and set a price target of $225.00 on October 16th. On January 17th, Barclays increased their price target for the company from $240.00 to $255.00, assigning it an "overweight" rating. Conversely, StockNews.com downgraded its rating from "buy" to "hold" on January 28th. Currently, two analysts recommend holding the stock, while four suggest buying it, resulting in an overall consensus rating of "Moderate Buy" with an average target price of $220.00.

Taiwan Semiconductor Manufacturing Stock Performance

Currently, the market capitalization of Taiwan Semiconductor Manufacturing is estimated at $1.06 trillion. The stock has a price-to-earnings (PE) ratio of 29.04 and a price-to-earnings-growth (PEG) ratio of 0.69, with a beta value of 1.06. The company's current ratio stands at 2.57, indicating its ability to cover short-term liabilities, while the quick ratio is 2.30. The debt-to-equity ratio of the company is 0.24, showing a low level of debt compared to equity. Furthermore, TSM's 50-day moving average is at $202.74, and its 200-day moving average is $186.63.

Recent Earnings Announcement

Taiwan Semiconductor Manufacturing reported its latest quarterly earnings on January 16th. The company posted an earnings-per-share (EPS) of $2.24, which was above the consensus estimate of $2.16 by $0.08. The company achieved a remarkable net margin of 40.51% and a return on equity of 30.47%. Analysts predict that the company will have an EPS of 9.12 for the current fiscal year.

Increased Dividend Announced

The firm has also recently announced an increase in its quarterly dividend, set to be paid on April 10th. Shareholders who are on record by March 18th will receive a dividend of $0.5484 per share, an increase from the prior dividend of $0.49. The ex-dividend date is also March 18th. This translates to an annualized dividend of $2.19, resulting in a dividend yield of 1.07%. The company maintains a dividend payout ratio (DPR) of 27.27%.

Institutional Investor Activity

Several institutional investors have made adjustments to their stakes in TSM recently. Reston Wealth Management LLC initiated a new position in the third quarter valued at $25,000. Similarly, Stonebridge Financial Group LLC also acquired a new stake valued at $25,000 in the fourth quarter. Roxbury Financial LLC invested $29,000 in TSM shares during the same quarter. Additionally, Sugarloaf Wealth Management LLC raised its holdings in the company by 77.1% during the third quarter, bringing their total shares to 186, worth around $32,000. Finally, Archer Investment Corp increased its holdings by 48.1% in the third quarter, owning 191 shares valued at $33,000. In total, institutional investors hold approximately 16.51% of TSM's shares.

Company Overview

Founded in Taiwan, the Taiwan Semiconductor Manufacturing Company Limited engages in the manufacture, packaging, testing, and sale of integrated circuits and other semiconductor devices globally, including regions like China, Europe, the Middle East, Africa, Japan, and the United States. The company utilizes a variety of wafer fabrication processes, including those for complementary metal-oxide-semiconductor (CMOS), mixed-signal, radio frequency, and memory devices.

Conclusion

The latest performance of TSM shares, the company's solid earnings report, and the strategic decisions made regarding dividends and the stock outlook suggest a positive trajectory. Investors should continue to monitor the company’s developments as it navigates the complexities of the semiconductor market.

TSM, stocks, dividend