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

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) saw its shares increase by 1.4% in mid-day trading on Tuesday. The stock peaked at $180.72 before closing at $175.46. During this timeframe, about 13,448,345 shares exchanged hands, which represents a 25% drop from the average daily trading volume of 17,949,230 shares. The previous closing price was $172.97.

Analyst Ratings Changes

Numerous analysts have weighed in on TSM shares. StockNews.com downgraded the stock from a "buy" rating to a "hold" rating in a report released on January 28. On the other hand, Barclays increased its target price for Taiwan Semiconductor Manufacturing from $240.00 to $255.00, providing an "overweight" rating in a report dated January 17. Moreover, Needham & Company LLC reaffirmed a "buy" rating with a target price of $225.00 in a research note published on February 18. Currently, there are two analysts recommending a hold on the stock and four advocating for buy ratings. Data from MarketBeat.com shows that Taiwan Semiconductor Manufacturing holds an average rating of "Moderate Buy" with a price target averaging $220.00.

Taiwan Semiconductor Manufacturing Stock Performance

The company presents 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 moving average stands at $204.06, while its 200-day moving average is $191.73. With a market capitalization of $934.41 billion, the stock displays a price-to-earnings ratio of 25.59 and a beta of 1.06. In its most recent earnings announcement on January 16, Taiwan Semiconductor Manufacturing reported earnings per share (EPS) of $2.24, surpassing the consensus estimate of $2.16 by $0.08. The company boasts a return on equity of 30.47% and a net margin of 40.51%. Analysts predict the company will report 9.2 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm has announced an increase in its quarterly dividend, set to be paid on July 10. Shareholders recorded as of June 12 will receive a $0.6855 dividend, translating to an annualized dividend of $2.74, which reflects a yield of 1.52%. This marks an increase from its previous quarterly dividend of $0.55. The ex-dividend date is also June 12. Currently, the dividend payout ratio for Taiwan Semiconductor Manufacturing is 31.11%.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Multiple large investors have recently traded shares of TSM. For instance, Dogwood Wealth Management LLC increased its stake in Taiwan Semiconductor Manufacturing by 4.9% in the last quarter, totaling 3,747 shares valued at $740,000. Similarly, Cim LLC raised its holdings in TSM by 393.4% during the same period, owning 8,146 shares worth $1,609,000 after purchasing an additional 6,495 shares. Other firms like BridgePort Financial Solutions LLC, Park Square Financial Group LLC, and Total Wealth Planning & Management Inc. also acquired new positions in the company during the fourth quarter. Presently, 16.51% of the stock is owned by institutional investors and hedge funds.

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company Limited, alongside its subsidiaries, engages in the manufacture, packaging, testing, and sale of integrated circuits and various semiconductor devices on a global scale. Its offerings include a wide range of wafer fabrication processes aimed at producing complementary metal-oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, and other forms of semiconductor technology.

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

Before making any investment decisions regarding Taiwan Semiconductor Manufacturing, it is important to stay informed. Despite the current Moderate Buy rating from analysts, there are other stocks that analysts recommend as better opportunities at this moment.

Taiwan, Semiconductor, Investment