Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Gap Up on Strong Earnings

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s share price gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $206.80, but opened at $218.89. Taiwan Semiconductor Manufacturing shares last traded at $216.13, with a volume of 12,944,739 shares.

The semiconductor company reported $2.24 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.16 by $0.08. Taiwan Semiconductor Manufacturing had a net margin of 39.10% and a return on equity of 27.44%.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, April 10th. Shareholders of record on Tuesday, March 18th will be given a dividend of $0.5484 per share. This represents a $2.19 dividend on an annualized basis and a yield of 1.01%. This is a boost from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.49. The ex-dividend date is Tuesday, March 18th. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is presently 30.77%.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on the company. Barclays increased their price target on Taiwan Semiconductor Manufacturing from $215.00 to $240.00 and gave the stock an “overweight” rating in a report on Monday, November 18th. StockNews.com cut shares of Taiwan Semiconductor Manufacturing from a “buy” rating to a “hold” rating in a research note on Sunday, November 17th. Needham & Company LLC reiterated a “buy” rating and set a $225.00 price target on shares of Taiwan Semiconductor Manufacturing in a research note on Thursday. Finally, Susquehanna restated 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 given a buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $217.00.

Institutional Trading of Taiwan Semiconductor Manufacturing

Institutional investors have recently added to or reduced their stakes in the stock. WealthPLAN Partners LLC acquired a new stake in shares of Taiwan Semiconductor Manufacturing in the 2nd quarter worth approximately $250,000. Axxcess Wealth Management LLC grew its holdings in Taiwan Semiconductor Manufacturing by 55.6% in the second quarter. Axxcess Wealth Management LLC now owns 11,164 shares of the semiconductor company’s stock valued at $1,940,000 after purchasing an additional 3,991 shares during the last quarter. Wealth Alliance grew its holdings in Taiwan Semiconductor Manufacturing by 31.6% in the second quarter. Wealth Alliance now owns 16,976 shares of the semiconductor company’s stock valued at $2,951,000 after purchasing an additional 4,080 shares during the last quarter. Central Asset Investments & Management Holdings HK Ltd increased its position in shares of Taiwan Semiconductor Manufacturing by 318.6% in the second quarter. Central Asset Investments & Management Holdings HK Ltd now owns 120,768 shares of the semiconductor company’s stock valued at $20,991,000 after buying an additional 91,918 shares in the last quarter. Finally, Lingotto Investment Management LLP raised its stake in shares of Taiwan Semiconductor Manufacturing by 37.0% during the 2nd quarter. Lingotto Investment Management LLP now owns 185,000 shares of the semiconductor company’s stock worth $32,155,000 after buying an additional 50,000 shares during the last quarter. Hedge funds and other institutional investors own 16.51% of the company’s stock.

Taiwan Semiconductor Manufacturing Stock Up 5.3 %

The company has a debt-to-equity ratio of 0.24, a quick ratio of 2.30 and a current ratio of 2.57. The firm’s 50-day moving average is $197.26 and its 200 day moving average is $183.79. The firm has a market capitalization of $1.13 trillion, a PE ratio of 34.91, a price-to-earnings-growth ratio of 0.76 and a beta of 1.07.

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.