Balentine LLC has significantly boosted its investment in Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM) by acquiring an additional 2,115 shares, representing a 55.4% increase in its stake during the second quarter of 2023. This transaction raises Balentine’s total holdings in the semiconductor giant to 5,932 shares, valued at approximately $1,344,000 as of the end of the quarter, according to HoldingsChannel.com.
The surge in Balentine’s investment reflects a broader trend among institutional investors, with several firms adjusting their positions in Taiwan Semiconductor. For instance, 1248 Management LLC initiated a new position in the first quarter, investing about $28,000. Similarly, Graybill Wealth Management LTD and Vision Financial Markets LLC each acquired shares worth approximately $33,000. Mid American Wealth Advisory Group Inc. also entered the market during the second quarter with an investment of around $33,000.
Furthermore, First Command Advisory Services Inc. has increased its holdings in Taiwan Semiconductor by 174.1%, bringing their total to 159 shares worth $36,000 after acquiring an additional 101 shares last quarter. Collectively, hedge funds and institutional investors now own about 16.51% of the stock.
Analysts Weigh In on Taiwan Semiconductor
Recent analyst evaluations indicate a positive outlook for Taiwan Semiconductor. Weiss Ratings upgraded the stock from a “hold (C+)” to a “buy (B-)” rating on October 24, 2023. Citigroup reiterated a “buy” rating on October 17, while Susquehanna raised its target price from $300.00 to $400.00, reflecting a “positive” outlook. Barclays also increased its target from $330.00 to $355.00, issuing an “overweight” rating. Needham & Company maintained a “buy” rating with a target price of $360.00.
According to data from MarketBeat.com, six research analysts currently rate Taiwan Semiconductor with a “buy” designation, leading to an average consensus target price of $371.67.
Recent Trading and Financial Performance
On October 27, 2023, Taiwan Semiconductor shares opened at $300.49, down 0.9% from previous levels. The company has a market capitalization of $1.56 trillion, a P/E ratio of 30.82, and a debt-to-equity ratio of 0.20. Its performance indicators include a current ratio of 2.37 and a quick ratio of 2.15. Over the past year, the stock has fluctuated between a low of $134.25 and a high of $311.37.
Taiwan Semiconductor recently reported its quarterly earnings on October 16, 2023. The company achieved earnings per share (EPS) of $2.92, surpassing analysts’ expectations of $2.59 by $0.33. The revenue for the quarter reached $32.36 billion, significantly higher than the anticipated $951.89 billion, marking a 40.1% year-over-year increase. The firm’s net margin stands at 43.72%, with a return on equity of 36.06%.
The company also announced an increase in its quarterly dividend, set to be paid on January 8, 2024. Shareholders on record as of December 11, 2023, will receive a dividend of $0.8348 per share, up from the previous $0.65 dividend. This adjustment signifies an annualized dividend of $3.34 with a yield of 1.1%. The current dividend payout ratio is 26.97%.
Taiwan Semiconductor Manufacturing Company Ltd., headquartered in Taiwan, is a leading player in the semiconductor industry, providing a range of services including the manufacturing, packaging, testing, and sale of integrated circuits and semiconductor devices. The company operates globally, serving markets in Taiwan, China, Europe, the Middle East, Africa, Japan, and the United States.
