Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Up 1% - Should You Buy?

Shares of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) saw a rise of 1% on Monday. The stock traded as high as $206.25 and closed at $203.77. During trading, 23,189,167 shares were exchanged, which is 22% more than the average volume of 18,992,380 shares. The previous closing price was $201.83.

Analyst Opinions on TSM

Several brokerages have recently updated their ratings for TSM. Barclays raised its target price for the stock from $240.00 to $255.00 and assigned an "overweight" rating as of January 17th. Needham & Company maintained a "buy" rating and set a target price of $225.00 in their report on January 16th. Conversely, StockNews.com downgraded TSM from a "buy" to a "hold" rating on January 28th. Overall, two analysts have rated the stock as a hold while four have given it a buy rating. As per MarketBeat.com, TSM has a consensus rating of "Moderate Buy" with a target price of $220.00.

TSM Performance Metrics

The company boasts a market capitalization of $1.06 trillion, with a price-to-earnings ratio of 28.94 and a P/E/G ratio of 0.70, illustrating its earnings growth potential. The stock has a beta of 1.06, indicating its volatility relative to the market. The fifty-day simple moving average is $205.26, while the 200-day average stands at $189.38. The company's quick ratio is 2.30, with a current ratio of 2.57 and a manageable debt-to-equity ratio of 0.24.

Quarterly Earnings and Dividend Increase

Taiwan Semiconductor Manufacturing announced its latest quarterly earnings on January 16th, reporting earnings per share (EPS) of $2.24. This figure surpassed the consensus estimate of $2.16 by $0.08. The company's net margin stands at 40.51%, and it has achieved a return on equity of 30.47%. Analysts predict an EPS of 9.12 for the current year. Additionally, TSM disclosed a quarterly dividend scheduled for payment on July 10th, amounting to $0.6855 per share. This marks an increase from the previous dividend of $0.55, resulting in an annualized dividend of $2.74 and a yield of 1.35%. The current payout ratio for TSM is 27.27%.

Institutional Ownership Trends

Recently, institutional investors have made changes to their holdings in TSM. Mount Yale Investment Advisors LLC increased its stake by 4.3% in Q4, now holding 35,709 shares valued at $7,052,000. Meanwhile, McHugh Group LLC invested approximately $605,000 for a new holding in TSM. OLD National Bancorp IN boosted its position by 2.1%, currently owning 113,205 shares worth $22,357,000 after adding 2,368 shares. Private Client Services LLC made a new investment of around $201,000 in TSM, and YHB Investment Advisors Inc. increased their stake by 6.9%, owning 40,275 shares valued at approximately $7,954,000. Institutional investors now control 16.51% of the company's shares.

Overview of Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Company Limited, along with its subsidiaries, produces, packages, tests, and sells integrated circuits and other semiconductor devices globally. Their offerings include various wafer fabrication processes for technologies such as CMOS logic, mixed-signal, and embedded memory.

Investment Considerations

While TSM currently holds a "Moderate Buy" rating, it is recommended to consider other stocks that top analysts believe may offer better investment opportunities at this time. Thorough research and analysis should be undertaken before making any investment decisions.

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