Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Climb 3.6% on Insider Buying Activity

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price was up 3.6% during trading on Monday following insider buying activity. The company traded as high as $394.39 and last traded at $388.9520. 15,543,937 shares changed hands during mid-day trading, an increase of 17% from the average daily volume of 13,232,762 shares. The stock had previously closed at $375.44.

Specifically, Director Michael R. Splinter acquired 840 shares of the firm’s stock in a transaction on Thursday, November 5th. The stock was acquired at an average cost of $357.00 per share, for a total transaction of $299,880.00. Following the purchase, the director owned 8,405 shares in the company, valued at approximately $3,000,585. The trade was a 11.10% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Lipen Yuan acquired 1,000 shares of the company’s stock in a transaction dated Sunday, November 1st. The stock was acquired at an average cost of $71.49 per share, for a total transaction of $71,490.00. Following the completion of the acquisition, the vice president directly owned 8,000 shares in the company, valued at approximately $571,920. The trade was a 14.29% increase in their ownership of the stock. The SEC filing for this purchase provides additional information.

Wall Street Analysts Forecast Growth

TSM has been the subject of several recent research reports. Zacks Research raised shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a report on Thursday, July 16th. Citigroup reaffirmed a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a report on Wednesday, October 7th. DA Davidson reaffirmed a “buy” rating and issued a $500.00 price target on shares of Taiwan Semiconductor Manufacturing in a report on Friday, October 16th. Sanford C. Bernstein increased their price target on Taiwan Semiconductor Manufacturing from $554.00 to $600.00 and gave the stock an “outperform” rating in a research report on Wednesday, November 4th. Finally, Weiss Ratings lowered Taiwan Semiconductor Manufacturing from a “buy (b)” rating to a “hold (c+)” rating in a research note on Wednesday. Three analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat, the company has an average rating of “Buy” and a consensus target price of $533.89.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Taiwan tightened short-selling limits and authorized a NT$500 billion market-stabilization fund. The measures helped lift local equities and chip stocks, supporting TSM shares after the market’s recent selloff. TSMC Stocks Rise as Taiwan Curbs Short Selling, Deploys Stabilization Fund
• Positive Sentiment: A company director bought 840 TSM shares for about $300,000, increasing his personal stake by 11.1%. Insider buying can be read as a vote of confidence, though one transaction is not conclusive. SEC insider transaction filing
• Positive Sentiment: Reports that 11 ETFs added TSM shares on Thursday point to investment demand, though the article provides no details on the scale of those purchases. 11 ETFs Add to Taiwan Semiconductor
• Neutral Sentiment: Coverage is mixed on whether TSM might eventually make advanced memory for Nvidia: one report suggests a possible move, while another says the company remains focused on logic chips. The speculation could create interest, but no confirmed change in strategy is provided. Report on possible advanced memory production
• Neutral Sentiment: Asian chip shares rebounded despite controversy surrounding Nvidia CEO Jensen Huang, suggesting the sector’s recovery may be supporting TSM while uncertainty in the AI-chip group remains a potential source of volatility. Asian chip stocks rise amid Nvidia CEO controversy

Taiwan Semiconductor Manufacturing Stock Performance

The company has a current ratio of 2.46, a quick ratio of 2.25 and a debt-to-equity ratio of 0.14. The stock has a market capitalization of $2.02 trillion, a PE ratio of 25.03, a price-to-earnings-growth ratio of 0.76 and a beta of 1.44. The firm’s fifty day moving average price is $431.68 and its two-hundred day moving average price is $400.77.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its earnings results on Thursday, October 15th. The semiconductor company reported $4.60 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.45 by $0.15. Taiwan Semiconductor Manufacturing had a net margin of 51.51% and a return on equity of 42.84%. The firm had revenue of $46.72 billion during the quarter, compared to analysts’ expectations of $45.67 billion. During the same period in the previous year, the business posted $2.92 EPS. The business’s revenue was up 41.2% compared to the same quarter last year. As a group, equities research analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 17.07 EPS for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, January 7th. Shareholders of record on Thursday, December 10th will be issued a $1.0854 dividend. The ex-dividend date of this dividend is Thursday, December 10th. This is a negative change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. This represents a $4.34 dividend on an annualized basis and a yield of 1.1%. Taiwan Semiconductor Manufacturing’s dividend payout ratio is presently 22.27%.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of TSM. North of South Capital LLP lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 3.9% during the 3rd quarter. North of South Capital LLP now owns 343,728 shares of the semiconductor company’s stock worth $156,805,000 after acquiring an additional 12,771 shares during the period. Virtus Advisers LLC boosted its position in shares of Taiwan Semiconductor Manufacturing by 112.3% during the 3rd quarter. Virtus Advisers LLC now owns 3,110 shares of the semiconductor company’s stock worth $1,419,000 after acquiring an additional 1,645 shares in the last quarter. Pensioenfonds Rail & OV bought a new position in Taiwan Semiconductor Manufacturing in the third quarter valued at approximately $5,794,000. IFG Advisory LLC increased its stake in Taiwan Semiconductor Manufacturing by 9.8% in the third quarter. IFG Advisory LLC now owns 12,591 shares of the semiconductor company’s stock valued at $5,744,000 after acquiring an additional 1,122 shares during the last quarter. Finally, Trillium Asset Management LLC increased its stake in Taiwan Semiconductor Manufacturing by 0.7% in the third quarter. Trillium Asset Management LLC now owns 153,537 shares of the semiconductor company’s stock valued at $70,043,000 after acquiring an additional 1,038 shares during the last quarter. Institutional investors and hedge funds own 16.51% of the company’s stock.

About Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Company (TSMC) is a semiconductor foundry that manufactures chips designed by other companies. It provides wafer fabrication and related services, including advanced packaging, serving customers across industries such as computing, communications, automotive and consumer electronics.

Founded in 1987 and headquartered in Hsinchu, Taiwan, TSMC helped establish the dedicated foundry model, in which a manufacturer focuses on producing semiconductors for customers rather than selling its own chip designs.