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

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $151.67, but opened at $156.05. Taiwan Semiconductor Manufacturing shares last traded at $153.21, with a volume of 8,189,700 shares changing hands.

The semiconductor company reported $2.12 earnings per share for the quarter, topping the consensus estimate of $2.03 by $0.09. Taiwan Semiconductor Manufacturing had a net margin of 40.51% and a return on equity of 30.47%. The firm had revenue of $25.82 billion during the quarter, compared to the consensus estimate of $834.10 billion.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, July 10th. Shareholders of record on Thursday, June 12th will be paid a dividend of $0.6855 per share. This represents a $2.74 annualized dividend and a yield of 1.81%. The ex-dividend date of this dividend is Thursday, June 12th. This is a boost from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.55. Taiwan Semiconductor Manufacturing’s payout ratio is 30.68%.

Wall Street Analyst Weigh In

TSM has been the subject of a number of recent research reports. Needham & Company LLC reiterated a “buy” rating and issued a $225.00 price objective on shares of Taiwan Semiconductor Manufacturing in a report on Thursday. StockNews.com lowered Taiwan Semiconductor Manufacturing from a “buy” rating to a “hold” rating in a research note on Tuesday, January 28th. Barclays lifted their price target on Taiwan Semiconductor Manufacturing from $240.00 to $255.00 and gave the stock an “overweight” rating in a report on Friday, January 17th. Finally, Susquehanna reduced their target price on shares of Taiwan Semiconductor Manufacturing from $265.00 to $250.00 and set a “positive” rating on the stock in a research note on Thursday. Two analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. Based on data from MarketBeat, Taiwan Semiconductor Manufacturing has a consensus rating of “Moderate Buy” and an average price target of $220.00.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Large investors have recently made changes to their positions in the stock. Mount Yale Investment Advisors LLC lifted its stake in Taiwan Semiconductor Manufacturing by 4.3% during the fourth quarter. Mount Yale Investment Advisors LLC now owns 35,709 shares of the semiconductor company’s stock worth $7,052,000 after purchasing an additional 1,476 shares in the last quarter. McHugh Group LLC purchased a new position in Taiwan Semiconductor Manufacturing during the 4th quarter valued at about $605,000. OLD National Bancorp IN increased its stake in Taiwan Semiconductor Manufacturing by 2.1% during the fourth quarter. OLD National Bancorp IN now owns 113,205 shares of the semiconductor company’s stock worth $22,357,000 after purchasing an additional 2,368 shares during the period. Guardian Partners Inc. acquired a new stake in shares of Taiwan Semiconductor Manufacturing during the fourth quarter worth about $9,222,000. Finally, Hardman Johnston Global Advisors LLC grew its holdings in shares of Taiwan Semiconductor Manufacturing by 7.6% in the fourth quarter. Hardman Johnston Global Advisors LLC now owns 381,432 shares of the semiconductor company’s stock valued at $75,329,000 after purchasing an additional 26,847 shares in the last quarter. 16.51% of the stock is currently owned by institutional investors and hedge funds.

Taiwan Semiconductor Manufacturing Stock Performance

The stock’s fifty day simple moving average is $173.73 and its 200-day simple moving average is $189.98. The company has a market capitalization of $787.61 billion, a price-to-earnings ratio of 21.57, a price-to-earnings-growth ratio of 0.66 and a beta of 1.16. The company has a current ratio of 2.57, a quick ratio of 2.30 and a debt-to-equity ratio of 0.24.

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.