Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 2% – Time to Sell?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price fell 2% during trading on Wednesday. The stock traded as low as $471.30 and last traded at $472.6380. 7,128,988 shares changed hands during mid-day trading, a decline of 45% from the average session volume of 13,079,472 shares. The stock had previously closed at $482.30.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Analysts remain constructive: Barclays raised its price target from $650 to $665 while maintaining an “overweight” rating, and Goldman Sachs lifted its target to TWD 3,300. Taiwan Semiconductor Manufacturing Stock Gets Price Target Bump from Barclays
• Positive Sentiment: Underlying AI-related demand remains a major support for TSMC. Analysts expect strong third-quarter results, continued growth in advanced-node manufacturing, and progress in the 2-nanometer production ramp. The company’s October 15 earnings report will be closely watched for revenue growth and margin guidance. TSMC Q3 Earnings: Strong AI Demand Sets the Bar High for Growth
• Positive Sentiment: Recent investment coverage continues to identify TSMC as a core beneficiary of the AI semiconductor cycle, citing its foundry leadership, roughly 45% net margin, and dependable earnings growth. 4 Top Chip Stocks With Dependable Earnings to Ride the AI Boom
• Neutral Sentiment: Intel CEO Lip-Bu Tan confirmed Intel will remain involved in Terafab. This reduces the possibility that TSMC would displace Intel, but it also suggests TSMC’s potential involvement could be limited to a leasing or supply-related role. Intel Stays in Musk’s Terafab Chip Venture Despite TSMC Talks
• Negative Sentiment: Musk’s clarification removed the prospect of TSMC operating Terafab, weakening expectations for a potentially significant new customer, strategic partnership, or U.S. manufacturing opportunity. That disappointment is the primary near-term pressure on TSM stock. Elon Musk Rules Out Potential TSMC Role in Terafab Operations

Analyst Ratings Changes

Several analysts recently issued reports on the stock. Barclays boosted their price objective on shares of Taiwan Semiconductor Manufacturing from $650.00 to $665.00 and gave the company an “overweight” rating in a report on Tuesday. Needham & Company LLC lifted their target price on Taiwan Semiconductor Manufacturing from $480.00 to $530.00 and gave the company a “buy” rating in a research report on Monday, July 27th. Susquehanna increased their price target on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the stock a “positive” rating in a research report on Thursday, July 16th. TD Cowen upped their target price on shares of Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the stock a “hold” rating in a research note on Friday, July 17th. Finally, Wall Street Zen cut shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 8th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, Taiwan Semiconductor Manufacturing has a consensus rating of “Buy” and a consensus target price of $524.89.

Taiwan Semiconductor Manufacturing Trading Down 2.0%

The company’s fifty day moving average is $429.10 and its two-hundred day moving average is $411.68. The stock has a market cap of $2.45 trillion, a price-to-earnings ratio of 34.10, a PEG ratio of 1.08 and a beta of 1.37. The company has a quick ratio of 2.25, a current ratio of 2.46 and a debt-to-equity ratio of 0.14.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its quarterly earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 EPS for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 39.25%. The company had revenue of $39.89 billion during the quarter. On average, research analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.56 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, January 7th. Investors of record on Thursday, December 10th will be issued a $1.0854 dividend. This represents a $4.34 annualized dividend and a yield of 0.9%. This is a drop from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. The ex-dividend date of this dividend is Thursday, December 10th. Taiwan Semiconductor Manufacturing’s dividend payout ratio is currently 24.96%.

Insider Buying and Selling

In related news, VP Lipen Yuan acquired 350 shares of the firm’s stock in a transaction on Tuesday, August 18th. The stock was bought at an average price of $73.58 per share, for a total transaction of $25,753.00. Following the completion of the purchase, the vice president directly owned 2,000 shares of the company’s stock, valued at approximately $147,160. The trade was a 21.21% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, VP Shyue-Shyh Lin bought 1,000 shares of the firm’s stock in a transaction that occurred on Tuesday, July 21st. The stock was purchased at an average cost of $74.13 per share, with a total value of $74,130.00. Following the completion of the transaction, the vice president owned 30,269 shares in the company, valued at approximately $2,243,840.97. This trade represents a 3.42% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders acquired a total of 14,559 shares of company stock worth $1,067,931 over the last 90 days. 1.11% of the stock is owned by insiders.

Institutional Trading of Taiwan Semiconductor Manufacturing

Several institutional investors and hedge funds have recently bought and sold shares of the business. Hilton Head Capital Partners LLC acquired a new position in Taiwan Semiconductor Manufacturing in the 4th quarter valued at about $27,000. Strategic Advocates LLC raised its position in Taiwan Semiconductor Manufacturing by 62.1% in the fourth quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company’s stock worth $28,000 after acquiring an additional 36 shares in the last quarter. Evolution Wealth Management Inc. raised its position in Taiwan Semiconductor Manufacturing by 257.7% in the first quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company’s stock worth $31,000 after acquiring an additional 67 shares in the last quarter. Cedar Mountain Advisors LLC lifted its holdings in Taiwan Semiconductor Manufacturing by 88.2% in the second quarter. Cedar Mountain Advisors LLC now owns 64 shares of the semiconductor company’s stock valued at $31,000 after acquiring an additional 30 shares during the period. Finally, Financial Freedom LLC acquired a new stake in Taiwan Semiconductor Manufacturing in the first quarter valued at $32,000. Hedge funds and other institutional investors own 16.51% of the company’s stock.

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), commonly known as TSMC, is a Taiwan-based semiconductor manufacturer and the world’s largest dedicated semiconductor foundry. Founded in 1987 by Morris Chang, the company pioneered the pure-play foundry model, producing chips designed by other companies rather than selling products under its own semiconductor brand.

TSMC manufactures a broad range of integrated circuits, including advanced logic chips used in high-performance computing, smartphones, automotive systems, communications equipment, and consumer electronics.