Insider Buying: Taiwan Semiconductor Manufacturing (NYSE:TSM) CEO Purchases $11,432.16 in Stock

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) CEO Che-Chia Wei acquired 144 shares of the firm’s stock in a transaction on Wednesday, October 7th. The shares were bought at an average cost of $79.39 per share, for a total transaction of $11,432.16. Following the completion of the acquisition, the chief executive officer directly owned 18,280 shares of the company’s stock, valued at approximately $1,451,249.20. This represents a 0.79% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website.

Che-Chia Wei also recently made the following trade(s):

• On Monday, September 7th, Che-Chia Wei acquired 149 shares of Taiwan Semiconductor Manufacturing stock. The stock was bought at an average price of $76.20 per share, for a total transaction of $11,353.80.
• On Friday, August 7th, Che-Chia Wei bought 152 shares of Taiwan Semiconductor Manufacturing stock. The stock was bought at an average cost of $73.31 per share, with a total value of $11,143.12.

Taiwan Semiconductor Manufacturing Price Performance

Taiwan Semiconductor Manufacturing stock opened at $452.87 on Friday. The company has a debt-to-equity ratio of 0.14, a current ratio of 2.46 and a quick ratio of 2.25. The company has a market capitalization of $2.35 trillion, a PE ratio of 32.67, a price-to-earnings-growth ratio of 1.00 and a beta of 1.37. Taiwan Semiconductor Manufacturing Company Ltd. has a one year low of $266.82 and a one year high of $487.47. The business has a 50 day simple moving average of $433.13 and a 200 day simple moving average of $413.81.

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

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, January 7th. Stockholders of record on Thursday, December 10th will be issued a $1.0854 dividend. This represents a $4.34 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend is Thursday, December 10th. This is a negative change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. Taiwan Semiconductor Manufacturing’s payout ratio is currently 24.96%.

Analysts Set New Price Targets

TSM has been the subject of a number of recent analyst reports. Susquehanna increased their target price 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. Barclays boosted their price target on shares of Taiwan Semiconductor Manufacturing from $650.00 to $665.00 and gave the company an “overweight” rating in a research report on Tuesday, October 6th. Stifel Nicolaus assumed coverage on shares of Taiwan Semiconductor Manufacturing in a research note on Tuesday, September 1st. They set a “buy” rating and a $515.00 price objective on the stock. Zacks Research upgraded Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a research note on Thursday, July 16th. Finally, Wall Street Zen cut Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 8th. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Buy” and an average target price of $524.89.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Record AI demand: TSMC reported third-quarter revenue of NT$1.49 trillion, or approximately $46.7 billion, up 50% year over year and ahead of analyst expectations. September sales increased 54.6% year over year, reinforcing strong demand for advanced chips used in artificial intelligence and high-performance computing. TSMC’s third-quarter revenue surges to record, beating market forecast
• Positive Sentiment: More advanced-packaging capacity: TSMC agreed to a multiyear, $2 billion manufacturing arrangement with GlobalFoundries to produce U.S.-made silicon interposers for TSMC’s CoWoS advanced-packaging ecosystem. The deal supports future AI capacity, although volume production is not expected to ramp until 2028. GlobalFoundries Lands $2 Billion TSMC Deal to Expand US AI Chip Packaging
• Positive Sentiment: Supportive industry outlook: Analysts and market commentators continue to identify semiconductors as a leading October sector, while strong results from TSMC and Samsung suggest AI infrastructure spending remains intact. TSMC’s earnings report next week could provide additional guidance on demand, margins and capital expenditures. Record Profits at Samsung and TSMC Say the AI Trade is Intact
• Neutral Sentiment: TSMC CEO Che-Chia Wei and other executives reported modest open-market purchases. The buying may indicate management confidence, but the transactions are small relative to the company’s market capitalization. TSMC Insider Buying and Selling
• Negative Sentiment: Valuation and profit-taking: Despite record revenue and approximately 77% year-over-year profit growth in the latest reported quarter, investors are questioning whether the AI gains are already reflected in TSM’s premium valuation. The stock is trading near its 52-week high, increasing sensitivity to earnings expectations.
• Negative Sentiment: Macro and geopolitical risks: Rising Treasury yields and oil prices have pressured technology stocks broadly. Taiwan-related geopolitical concerns and uncertainty surrounding a potential Musk-linked Terafab project are additional risks, particularly because TSMC’s exact role remains unclear.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

A number of institutional investors and hedge funds have recently made changes to their positions in TSM. Tiger Global Management LLC increased its position in Taiwan Semiconductor Manufacturing by 49.4% in the first quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company’s stock worth $1,880,717,000 after purchasing an additional 1,839,600 shares during the period. T. Rowe Price Investment Management Inc. lifted its position in Taiwan Semiconductor Manufacturing by 168.6% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 2,093,115 shares of the semiconductor company’s stock valued at $636,077,000 after purchasing an additional 1,313,917 shares during the period. Corient Private Wealth LLC lifted its position in Taiwan Semiconductor Manufacturing by 330.0% during the 4th quarter. Corient Private Wealth LLC now owns 1,583,175 shares of the semiconductor company’s stock valued at $481,111,000 after purchasing an additional 1,215,035 shares during the period. Fundsmith LLP bought a new position in shares of Taiwan Semiconductor Manufacturing in the 2nd quarter valued at about $548,465,000. Finally, Deutsche Bank AG boosted its stake in shares of Taiwan Semiconductor Manufacturing by 94.3% in the 4th quarter. Deutsche Bank AG now owns 2,264,367 shares of the semiconductor company’s stock valued at $688,118,000 after purchasing an additional 1,098,727 shares during the last quarter. Institutional investors own 16.51% of the company’s stock.

About Taiwan Semiconductor Manufacturing

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.