Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Up 4.9% on Strong Earnings

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s share price shot up 4.9% during mid-day trading on Thursday following a stronger than expected earnings report. The stock traded as high as $221.95 and last traded at $216.87. 23,181,844 shares changed hands during mid-day trading, an increase of 41% from the average session volume of 16,389,395 shares. The stock had previously closed at $206.80.

The semiconductor company reported $2.24 earnings per share 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 company also recently declared a quarterly dividend, which will be paid on Thursday, April 10th. Investors of record on Tuesday, March 18th will be given a $0.5484 dividend. This represents a $2.19 annualized dividend and a dividend yield of 1.02%. The ex-dividend date is Tuesday, March 18th. This is an increase from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.49. Taiwan Semiconductor Manufacturing’s dividend payout ratio is 35.10%.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on TSM shares. Needham & Company LLC reiterated a “buy” rating and issued a $225.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research note on Thursday. Susquehanna reaffirmed a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a report on Friday, October 18th. Barclays upped their price objective on shares of Taiwan Semiconductor Manufacturing from $215.00 to $240.00 and gave the stock an “overweight” rating in a report on Monday, November 18th. Finally, StockNews.com downgraded shares of Taiwan Semiconductor Manufacturing from a “buy” rating to a “hold” rating in a report on Sunday, November 17th. Two equities research analysts have rated the stock with a hold rating and four have given a buy rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $217.00.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the stock. FWG Holdings LLC raised its position in shares of Taiwan Semiconductor Manufacturing by 1.6% during the third quarter. FWG Holdings LLC now owns 3,106 shares of the semiconductor company’s stock worth $539,000 after acquiring an additional 50 shares during the last quarter. Elmwood Wealth Management Inc. grew its holdings in Taiwan Semiconductor Manufacturing by 3.7% during the fourth quarter. Elmwood Wealth Management Inc. now owns 1,405 shares of the semiconductor company’s stock valued at $277,000 after purchasing an additional 50 shares during the period. Gilman Hill Asset Management LLC raised its holdings in Taiwan Semiconductor Manufacturing by 3.3% in the fourth quarter. Gilman Hill Asset Management LLC now owns 1,614 shares of the semiconductor company’s stock worth $319,000 after purchasing an additional 52 shares during the period. Mitchell Mcleod Pugh & Williams Inc. grew its holdings in shares of Taiwan Semiconductor Manufacturing by 2.3% in the 4th quarter. Mitchell Mcleod Pugh & Williams Inc. now owns 2,469 shares of the semiconductor company’s stock valued at $488,000 after buying an additional 55 shares during the period. Finally, Defender Capital LLC. raised its position in shares of Taiwan Semiconductor Manufacturing by 3.7% during the third quarter. Defender Capital LLC. now owns 1,565 shares of the semiconductor company’s stock worth $272,000 after purchasing an additional 56 shares during the period. Institutional investors own 16.51% of the company’s stock.

Taiwan Semiconductor Manufacturing Price Performance

The company has a 50-day moving average of $197.53 and a 200-day moving average of $183.96. 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 has a market capitalization of $1.12 trillion, a price-to-earnings ratio of 34.46, a price-to-earnings-growth ratio of 0.76 and a beta of 1.07.

About Taiwan Semiconductor Manufacturing

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.