Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Up 1.4% - Should You Buy?

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) experienced a 1.4% increase in share price during mid-day trading on Tuesday. The stock reached a peak of $180.72 and was last seen trading at $175.46. During this trading session, approximately 13,448,345 shares changed hands, marking a 25% decline from its average daily volume of 17,949,230 shares. The stock had previously closed at $172.97.

Analyst Ratings Changes

Several analysts have shared their opinions on the performance of TSM shares. StockNews.com downgraded Taiwan Semiconductor Manufacturing from a "buy" rating to a "hold" rating on January 28th. Conversely, Barclays raised their price target for the company from $240.00 to $255.00 while giving it an "overweight" rating on January 17th. Additionally, Needham & Company LLC reiterated a "buy" rating, setting a price target of $225.00 on February 18th. Currently, two analysts have rated the stock as a hold, while four others have given it a buy rating. According to MarketBeat.com, the average rating for Taiwan Semiconductor Manufacturing is a "Moderate Buy" with an average target price of $220.00.

Get Our Latest Report on Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Stock Performance

The company maintains a debt-to-equity ratio of 0.24, a quick ratio of 2.30, and a current ratio of 2.57. The stock's 50-day simple moving average stands at $204.06, while its two-hundred-day simple moving average is $191.73. Taiwan Semiconductor Manufacturing has a market capitalization of $934.41 billion, a price-to-earnings ratio of 25.59, a price-to-earnings-growth ratio of 0.66, and a beta of 1.06.

The company recently reported its quarterly earnings on January 16th, revealing earnings per share of $2.24 for the quarter, which exceeded the consensus estimate of $2.16 by $0.08. Taiwan Semiconductor Manufacturing achieved a return on equity of 30.47% and a net margin of 40.51%. Analysts predict that the company will report earnings per share of 9.2 for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also announced an increase in its quarterly dividend, which is scheduled to be paid on July 10th. Shareholders on record by June 12th will receive a dividend of $0.6855, equating to an annualized dividend of $2.74 and a dividend yield of 1.52%. This is an increase from the previous quarterly dividend of $0.55. The ex-dividend date is also on June 12th, and the current dividend payout ratio for Taiwan Semiconductor Manufacturing is 31.11%.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Several institutional investors have been active in trading shares of TSM recently. Dogwood Wealth Management LLC boosted its holdings in Taiwan Semiconductor Manufacturing by 4.9% during the fourth quarter, now owning 3,747 shares valued at $740,000 after acquiring 176 additional shares. In a more significant move, Cim LLC increased its stake by 393.4% during the same period, now holding 8,146 shares worth around $1,609,000 after purchasing an extra 6,495 shares. Other firms, including BridgePort Financial Solutions LLC and Park Square Financial Group LLC, also acquired new positions in TSM, demonstrating a growing interest among institutional investors. Currently, approximately 16.51% of the stock is owned by institutional investors and hedge funds.

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company Limited, along with its subsidiaries, specializes in the manufacturing, packaging, testing, and sale of integrated circuits and other semiconductor devices across various global regions, including Taiwan, China, Europe, the Middle East, Africa, Japan, and the United States. The company offers a diverse range of wafer fabrication processes, including those used to manufacture complementary metal-oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, bipolar CMOS mixed-signal, and more.

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

Before making any investment decisions regarding Taiwan Semiconductor Manufacturing, it's important to consider other options. MarketBeat monitors top research analysts, revealing that some do not recommend TSM as a high-potential stock at this time. While analysts currently rate Taiwan Semiconductor Manufacturing as a "Moderate Buy," there are at least five other stocks that analysts believe present better investment opportunities.

In summary, while TSM shares have shown a positive movement recently and have received mixed reviews from analysts and institutional investors alike, it may be beneficial for potential investors to review other available stocks before deciding where to invest their money.

TSM, Investment, Stocks