Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading 4.2% Higher – Still a Buy?

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) traded up 4.2% on Monday . The company traded as high as $449.39 and last traded at $436.0010. 17,812,223 shares changed hands during trading, an increase of 29% from the average session volume of 13,840,282 shares. The stock had previously closed at $418.45.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

Here are the key news stories impacting Taiwan Semiconductor Manufacturing this week:

• Positive Sentiment: Bernstein and BofA remained constructive on TSMC, with Bernstein raising its price target to $430 and citing the company’s leadership in advanced-node manufacturing and AI demand. Bernstein and BofA Remain Bullish on TSMC (TSM) Amid AI and Advanced Node Leadership
• Positive Sentiment: AI enthusiasm continued to lift Taiwan-related chip stocks, with reports that demand for AI chips and optical connectivity is strengthening the outlook for suppliers such as TSMC. Fresh AI Buzz Powers Taiwan Stocks Even Higher
• Positive Sentiment: TSMC also benefited from broader investor optimism around the AI buildout, including news that the company is expanding its use of Nvidia AI technologies across chip production operations. TSMC Expands Use of NVIDIA AI Technologies Across Chip Production Operations
• Neutral Sentiment: Several market pieces noted that TSMC remains a heavily owned hedge-fund stock and is trading near buy-zone territory, reinforcing investor confidence but not changing the core outlook. Taiwan Semiconductor (TSM): One of the Most Owned Stocks by Hedge Funds?
• Neutral Sentiment: One article argued TSMC may be overvalued after its recent rally, which could temper enthusiasm, but the piece did not point to a new fundamental weakness. Is Taiwan Semiconductor Manufacturing Co Ltd (TSM) Overvalued After 4.1% Rally? GF Value Says Overvalued

Analysts Set New Price Targets

A number of research analysts have recently weighed in on TSM shares. Weiss Ratings raised Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday, March 20th. Barclays increased their price objective on Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the company an “overweight” rating in a report on Wednesday, April 22nd. DA Davidson reaffirmed a “buy” rating and set a $450.00 target price on shares of Taiwan Semiconductor Manufacturing in a report on Friday, April 17th. Wall Street Zen raised Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a report on Sunday, March 22nd. Finally, Needham & Company LLC raised their target price on Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the stock a “buy” rating in a report on Thursday, April 16th. Two research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Buy” and a consensus target price of $404.29.

Taiwan Semiconductor Manufacturing Stock Performance

The stock has a market capitalization of $2.31 trillion, a price-to-earnings ratio of 37.11, a price-to-earnings-growth ratio of 1.27 and a beta of 1.38. The firm has a fifty day moving average of $380.19 and a 200 day moving average of $343.92. The company has a debt-to-equity ratio of 0.16, a current ratio of 2.49 and a quick ratio of 2.31.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 EPS for the quarter. The firm had revenue of $30.65 billion for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 36.81% and a net margin of 46.97%. On average, sell-side analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.28 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Wednesday, September 16th will be issued a $1.1136 dividend. The ex-dividend date of this dividend is Wednesday, September 16th. This is an increase from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. This represents a $4.45 annualized dividend and a yield of 1.0%. Taiwan Semiconductor Manufacturing’s dividend payout ratio is 24.71%.

Insider Activity at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Bor-Zen Tien acquired 2,000 shares of the company’s stock in a transaction on Tuesday, May 19th. The shares were bought at an average cost of $69.91 per share, with a total value of $139,820.00. Following the completion of the acquisition, the vice president owned 11,051 shares in the company, valued at approximately $772,575.41. This trade represents a 22.10% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, VP Tzu-Sou Chuang sold 200,000 shares of the firm’s stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $69.83, for a total value of $13,966,000.00. Following the completion of the sale, the vice president directly owned 2,495,165 shares in the company, valued at approximately $174,237,371.95. The trade was a 7.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders acquired 3,346 shares of company stock worth $218,005. 1.11% of the stock is owned by corporate insiders.

Institutional Trading of Taiwan Semiconductor Manufacturing

Several institutional investors have recently bought and sold shares of the business. First Nebraska Trust Co acquired a new stake in Taiwan Semiconductor Manufacturing in the first quarter valued at approximately $1,211,000. Foguth Wealth Management LLC. acquired a new stake in shares of Taiwan Semiconductor Manufacturing in the first quarter worth approximately $222,000. Asset Dedication LLC boosted its stake in shares of Taiwan Semiconductor Manufacturing by 4.7% in the first quarter. Asset Dedication LLC now owns 872 shares of the semiconductor company’s stock worth $295,000 after acquiring an additional 39 shares during the last quarter. Lavelle Capital LP acquired a new stake in shares of Taiwan Semiconductor Manufacturing in the first quarter worth approximately $1,366,000. Finally, Challenger Wealth Management boosted its stake in shares of Taiwan Semiconductor Manufacturing by 9.1% in the first quarter. Challenger Wealth Management now owns 5,107 shares of the semiconductor company’s stock worth $1,726,000 after acquiring an additional 425 shares during the last quarter. 16.51% of the stock is owned by institutional investors and hedge funds.

About Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Company (TSMC) is a leading pure-play semiconductor foundry that provides wafer fabrication and related services to the global semiconductor industry. Founded in 1987 by Morris Chang and headquartered in Hsinchu, Taiwan, TSMC manufactures integrated circuits on behalf of fabless and integrated device manufacturers, offering contract chip production across a broad set of technologies and products.

TSMC’s service offering covers logic and mixed-signal process technologies, specialty processes for radio-frequency, power management and embedded memory, and advanced nodes used in mobile, high-performance computing and AI applications.