Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 0.9% - Here's Why

Shares of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) dropped 0.9% in mid-day trading on Tuesday. The stock hit a low of $200.52 before settling at $201.96. During the trading session, 6,271,476 shares changed hands, representing a significant decline of 64% compared to the average volume of 17,352,859 shares. The stock had closed at $203.90 the previous day.

Analysts Set New Price Targets

Recent analysis from various research firms offers new insights into TSM's stock performance. Barclays recently raised its price target on the company from $240.00 to $255.00 and issued an "overweight" rating in a report dated January 17th. Conversely, StockNews.com downgraded TSM from a "buy" rating to a "hold" rating in a more recent notice on January 28th. In addition, Needham & Company reiterated a "buy" rating while setting a price target of $225.00. Overall, two analysts have recommended a hold, while four have pegged it as a buy, leading to a consensus rating of "Moderate Buy" from MarketBeat.com, with an average target price of $220.00.

Current Financial Metrics

Taiwan Semiconductor Manufacturing maintains a strong financial profile, with a debt-to-equity ratio of 0.24 and a quick ratio of 2.30. The current ratio stands at 2.57. Its 50-day and 200-day moving averages are at $205.68 and $190.15, respectively. TSM boasts a market capitalization of $1.04 trillion, a P/E ratio of 28.40, a price-to-earnings-growth ratio of 0.67, and a beta of 1.06.

Quarterly Earnings Results

The company reported its latest quarterly earnings on January 16th, where it announced earnings per share (EPS) of $2.24, which surpassed analysts' expectations of $2.16 by $0.08. Taiwan Semiconductor Manufacturing achieved a return on equity of 30.47% and maintained a net margin of 40.51%. Analysts forecast that the company will report an EPS of 9.2 for the current fiscal year.

Dividend Announcement

TSM has declared a quarterly dividend of $0.6855 per share, set to be distributed on July 10th, with a record date of June 12th. This marks an increase from its previous dividend of $0.55, leading to an annualized dividend of $2.74 and a yield of 1.37%. The ex-dividend date is also June 12th, and the company currently operates with a dividend payout ratio of 31.11%.

Institutional Investment Trends

Recent trading activity shows shifts in institutional investor positions regarding TSM stock. For instance, Price T Rowe Associates Inc. MD increased its stake by 67% in the fourth quarter, now holding 10,365,404 shares valued at approximately $2.047 billion. FMR LLC also raised its holdings by 7.2% in the third quarter and now owns nearly 56 million shares worth around $9.721 billion. Similarly, other institutional investors like Jennison Associates LLC and Franklin Resources Inc. have boosted their stakes, showing positive sentiment towards the stock. Overall, institutional investors collectively own about 16.51% of TSM shares.

About Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Company Limited, along with its subsidiaries, produces, packages, tests, and sells integrated circuits and various semiconductor devices globally. Its operations span across Taiwan, China, Europe, the Middle East, Africa, Japan, and the United States. The company specializes in several wafer fabrication processes, including those for complementary metal-oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, and bipolar CMOS mixed-signal technologies.

Conclusion

As the market assesses TSM's latest movements and outlook, investors may be left wondering whether it is time to sell or hold onto their shares. The stock showed declines recently, but expert analysts remain mixed on its future performance, making it essential for shareholders to stay informed about upcoming earnings, dividend announcements, and further market analysis.

TSM, Stock, Investment