Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 0.1% - Here's What Happened

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) experienced a slight decline in its share price, falling 0.1% during mid-day trading on Tuesday. The stock dipped to an intraday low of $183.87 before last trading at $184.86. Approximately 2,949,424 shares changed hands, representing a substantial decrease of 81% from the average session volume of 15,285,150 shares. The previous closing price stood at $185.08.

Wall Street Analysts Forecast Growth

Many analysts have recently commented on TSM's stock performance. On November 17th, StockNews.com downgraded Taiwan Semiconductor Manufacturing from a "buy" rating to a "hold" rating. However, Susquehanna maintained its "buy" rating in an October 18th note. Meanwhile, Needham & Company LLC reiterated a "buy" rating, setting a target price of $210.00 on October 17th. Additionally, Barclays increased its price target from $215.00 to $240.00, giving the stock an "overweight" rating as of November 18th. Currently, two analysts hold a "hold" rating, while four have assigned a "buy" rating, resulting in an average rating of "Moderate Buy" and a target price of $214.00, according to data from MarketBeat.com.

Taiwan Semiconductor Manufacturing Stock Down 1.3%

The company's financial health appears stable with a debt-to-equity ratio of 0.24, a quick ratio of 2.30, and a current ratio of 2.57. The market capitalization is approximately $947.56 billion, and it has a price-to-earnings ratio of 29.63, with a price-to-earnings-growth ratio of 0.88. Over the past few months, the stock's simple moving averages have also shown positive trends, with the 50-day average at $188.24, and the 200-day average at $174.42.

Taiwan Semiconductor Manufacturing recently released its earnings results on October 17th, revealing an earnings per share (EPS) of $1.94 for the quarter, surpassing the analysts' expectations of $1.74 by $0.20. The firm generated revenue of $23.50 billion during the quarter, significantly outpacing the consensus estimate of $22.72 billion. The company also reported a return on equity of 27.44% and a net margin of 39.10%. Analysts predict that Taiwan Semiconductor Manufacturing will post 6.95 EPS for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

In addition to its stock performance, the firm has announced an increase in its quarterly dividend. Shareholders on record as of March 18th will receive a dividend of $0.5484, scheduled for payout on April 10th. This marks an increase from the previous quarterly dividend of $0.49, bringing the annualized dividend to $2.19, which translates to a yield of 1.20%. The company's payout ratio stands at a reasonable 31.57%.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Institutional investors continue to show interest in the company, with several hedge funds either acquiring new stakes or increasing existing ones. For instance, Atlantic Edge Private Wealth Management LLC purchased shares during the second quarter worth $25,000, and Reston Wealth Management LLC followed suit in the third quarter, also investing $25,000. Other firms, like Valley Wealth Managers Inc. and Olistico Wealth LLC, also added positions in TSM, with stakes valued around $27,000. Currently, around 16.51% of the stock is held by institutional investors and hedge funds.

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company Limited operates alongside its subsidiaries to manufacture, package, test, and sell integrated circuits and semiconductor devices globally. The company is well-regarded for a broad range of wafer fabrication processes, including those for complementary metal-oxide-semiconductor (CMOS) logic, mixed-signal, and radio frequency applications.

Should You Invest in Taiwan Semiconductor Manufacturing?

As an investor, before making a decision regarding TSM, it's vital to analyze the stock's performance and market forecasts carefully. While TSM carries a "Moderate Buy" rating among analysts, it's also essential to explore other potential investment opportunities that may align better with your finance strategies.

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