Taiwan Semiconductor Manufacturing Company Experiences Significant Options Trading Activity

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM - Get Free Report) attracted attention on Tuesday due to notable options trading. Investors engaged in the purchase of 218,872 call options for the company, marking an increase of approximately 65% compared to the average daily volume of 133,014 call options.

Wall Street Analysts Forecast Growth

Equities analysts have recently issued various reports regarding TSM shares. Susquehanna reiterated a "buy" rating for Taiwan Semiconductor Manufacturing in a report on October 18th. Similarly, Needham & Company LLC echoed a "buy" stance and set a target price of $210.00 on October 17th. Barclays raised their price target on the stock from $215.00 to $240.00, assigning an "overweight" rating in a report from November 18th. However, StockNews.com downgraded Taiwan Semiconductor Manufacturing from a "buy" rating to a "hold" rating on November 17th. Presently, two analysts recommend holding the stock, while four analysts advocate for a buy. According to data from MarketBeat.com, TSM has a consensus rating of "Moderate Buy" along with an average price target of $214.00.

Taiwan Semiconductor Manufacturing Price Performance

On Tuesday during midday trading, NYSE:TSM saw its price rise by $4.49, reaching $198.89. The company's stock had a trading volume of 10,751,002 shares, relative to an average volume of 15,250,080 shares. The 50-day simple moving average stands at $189.16 while the 200-day simple moving average is $175.32. Taiwan Semiconductor Manufacturing also has impressive financial metrics, with a debt-to-equity ratio of 0.24, a quick ratio of 2.30, and a current ratio of 2.57. Over the past year, the stock has had a low of $95.25 and a high of $212.60, boasting a market capitalization of $1.03 trillion. The company also has a price-to-earnings (PE) ratio of 31.86 and a price-to-earnings-growth (PEG) ratio of 0.90.

In its latest earnings announcement on October 17th, Taiwan Semiconductor Manufacturing reported an earnings per share (EPS) of $1.94, surpassing the analyst consensus estimate of $1.74 by $0.20. The company's revenue during the quarter totaled $23.50 billion, exceeding analyst expectations of $22.72 billion. Taiwan Semiconductor also reported a net margin of 39.10% and a return on equity of 27.44%. Analysts predict that the firm will achieve an EPS of 6.95 for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

Recently, Taiwan Semiconductor Manufacturing announced a quarterly dividend that will be paid on April 10th, 2025. Shareholders who are on record by March 18th will receive a dividend of $0.5484, an increase from the previous quarterly dividend of $0.49. This represents an annualized dividend of $2.19, yielding about 1.10%, with the ex-dividend date also set for March 18th. The company maintains a dividend payout ratio (DPR) of 31.57%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently adjusted their holdings in Taiwan Semiconductor Manufacturing. Notably, PineStone Asset Management Inc. increased its stake by 116.3% in the second quarter, now owning 7,784,316 shares valued at approximately $1.35 billion after adding 4,186,133 shares in the past quarter. In the third quarter, FMR LLC grew its position by 7.2%, acquiring 55,974,769 shares worth around $9.72 billion after buying an additional 3,783,802 shares. Clearbridge Investments LLC also made a substantial increase of 669.7% in the second quarter, owning 3,721,489 shares valued at $646.83 million after acquiring 3,237,998 shares. Additionally, 1832 Asset Management L.P. expanded its holdings by 1,226.7% during the same quarter, accumulating 1,983,830 shares valued at $344.81 million. Lastly, a distinct business unit of UBS Asset Management Americas LLC increased its stake by 799.2% in the third quarter, now owning 1,899,088 shares valued at roughly $329.82 million. In total, 16.51% of the stock is held by institutional investors.

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company Limited operates alongside its subsidiaries to manufacture, package, test, and sell integrated circuits and other semiconductor devices globally, including operations in Taiwan, China, Europe, the Middle East, Africa, Japan, and the United States. It provides an array of wafer fabrication processes, including those for complementary metal-oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, and bipolar CMOS mixed-signal technologies.

Trading, Options, Growth