Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading 3.3% Higher - Should You Buy?

Shares of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM - Get Free Report) rose 3.3% during trading on Monday . The stock traded as high as $204.28 and last traded at $203.69. Approximately 4,387,517 shares traded hands during trading, a decline of 71% from the average daily volume of 15,067,510 shares. The stock had previously closed at $197.21.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on TSM. Needham & Company LLC reiterated a "buy" rating and issued a $210.00 price target on shares of Taiwan Semiconductor Manufacturing in a report on Thursday, October 17th. StockNews.com lowered shares of Taiwan Semiconductor Manufacturing from a "buy" rating to a "hold" rating in a research note on Sunday, November 17th. Barclays lifted their price target on Taiwan Semiconductor Manufacturing from $215.00 to $240.00 and gave the company an "overweight" rating in a research note on Monday, November 18th. Finally, Susquehanna reaffirmed a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research report on Friday, October 18th. Two investment analysts have rated the stock with a hold rating and four have issued a buy rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $214.00.

Taiwan Semiconductor Manufacturing Stock Up 5.1 %

The firm's 50 day simple moving average is $194.16 and its 200-day simple moving average is $179.81. The company has a current ratio of 2.57, a quick ratio of 2.30 and a debt-to-equity ratio of 0.24. The stock has a market capitalization of $1.08 trillion, a price-to-earnings ratio of 33.23, a price-to-earnings-growth ratio of 0.93 and a beta of 1.09.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last released its earnings results on Thursday, October 17th. The semiconductor company reported $1.94 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.74 by $0.20. Taiwan Semiconductor Manufacturing had a return on equity of 27.44% and a net margin of 39.10%. The business had revenue of $23.50 billion for the quarter, compared to analyst estimates of $22.72 billion. Equities analysts expect that Taiwan Semiconductor Manufacturing Company Limited will post 6.95 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, April 10th. Investors of record on Tuesday, March 18th will be paid a $0.5484 dividend. The ex-dividend date of this dividend is Tuesday, March 18th. This is a boost from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.49. This represents a $2.19 annualized dividend and a dividend yield of 1.06%. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is currently 35.10%.

Institutional Trading of Taiwan Semiconductor Manufacturing

Several institutional investors and hedge funds have recently added to or reduced their stakes in TSM. Reston Wealth Management LLC acquired a new stake in Taiwan Semiconductor Manufacturing in the 3rd quarter valued at about $25,000. Valley Wealth Managers Inc. acquired a new stake in shares of Taiwan Semiconductor Manufacturing in the second quarter valued at approximately $27,000. Fairscale Capital LLC bought a new position in shares of Taiwan Semiconductor Manufacturing during the 2nd quarter worth approximately $32,000. Sugarloaf Wealth Management LLC increased its holdings in shares of Taiwan Semiconductor Manufacturing by 77.1% during the 3rd quarter. Sugarloaf Wealth Management LLC now owns 186 shares of the semiconductor company's stock worth $32,000 after acquiring an additional 81 shares during the last quarter. Finally, Archer Investment Corp raised its stake in Taiwan Semiconductor Manufacturing by 48.1% in the 3rd quarter. Archer Investment Corp now owns 191 shares of the semiconductor company's stock valued at $33,000 after acquiring an additional 62 shares during the period. 16.51% of the stock is owned by institutional investors.

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It provides a range of wafer fabrication processes, including processes to manufacture complementary metal- oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, bipolar CMOS mixed-signal, and others.