TSM Stock Sees Institutional Adjustments Amid Robust Earnings and Analyst Optimism

Headwater Capital Co Ltd lowered its stake in Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM), reducing its holdings by 12.0% in the first quarter. The institutional investor now owns 220,000 shares after selling 30,000 shares. As of the end of the reporting period, these holdings were valued at $36,520,000, and Taiwan Semiconductor Manufacturing represents 16.4% of Headwater’s portfolio, making it the firm's second largest position.

Similarly, Scotia Capital Inc. sold 21,590 shares, trimming its holdings by 6.3%. As a result, Scotia Capital now owns 323,728 shares, valued at approximately $53,739,000. Other institutional investors have adjusted their positions in the company as well. For example, First Heartland Consultants Inc. increased its holdings by 4.2% and Formidable Asset Management LLC by 3.2% in the fourth quarter. Connecticut Wealth Management LLC raised its position by 0.7%, while WealthCollab LLC posted a 6.7% increase. Gilder Gagnon Howe & Co. LLC expanded its holdings by 1.1%. Overall, hedge funds and other institutional investors own 16.51% of the company's stock.

In terms of shareholder movements, CCLA Investment Management decreased its position by 33.7% and Fiera Capital Corp cut its shares by 22.0%. Westwood Holdings Group Inc. reduced its holdings by 24.9%, while Malaga Cove Capital LLC also lowered its stake by 11.8%. US Bancorp DE and Jupiter Asset Management Ltd. further decreased their positions by 8.9% and 10.3%, respectively. Westfield Capital Management Co. LP decreased its stake by 18.5%, while Ruffer LLP reduced its holdings by 17.3%.

Despite the sell-offs from some institutional investors, Wall Street analysts maintain a positive outlook for TSM. Several analysts have reiterated their buy ratings with target prices ranging from $240 to $270. Barclays lifted its target price from $215 to $240, Needham & Company set theirs at $270, Susquehanna increased it from $255 to $265, and Citigroup affirmed their buy rating without specifying a price target. According to MarketBeat, the stock currently holds an average rating of "Moderate Buy" with a consensus target price of $258.33.

Financially, Taiwan Semiconductor Manufacturing recently announced a robust quarterly performance. For the quarter ending July 17, the company reported earnings per share (EPS) of $2.47, surpassing the consensus estimate of $2.13 by $0.34. The semiconductor giant also reported revenue of $30.07 billion, exceeding analyst expectations of $28.50 billion, and marking an impressive 44.4% year-over-year increase. Last year, during the same period, the company posted EPS of $1.48. Analysts anticipate that Taiwan Semiconductor Manufacturing will post an EPS of 9.2 for the current year.

Reflecting on its dividend strategy, the company recently declared a quarterly dividend of $0.6499 per share, translating to an annualized yield of 1.1% and a payout ratio of 28.16%. Shareholders of record as of September 16th will receive the dividend payment on October 9th, with the ex-dividend date falling on September 16th.

Taiwan Semiconductor Manufacturing Company Ltd., together with its subsidiaries, operates globally in the manufacturing, packaging, testing, and selling of integrated circuits and other semiconductor devices. Its reach spans Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. The company provides a range of wafer fabrication processes, including those for manufacturing complementary metal-oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, bipolar CMOS mixed-signal, and others.

Numerous institutional investors have added or adjusted their stakes in TSM. Notably, Price T Rowe Associates Inc. MD increased its holdings by 67.0%, adding 4,158,772 shares during the last quarter to hold a total of 10,365,404 shares, valued at $2,047,065,000. Likewise, FMR LLC increased its holdings by 4.6%, owning 58,547,257 shares worth $11,562,498,000 after acquiring an additional 2,572,488 shares. Other notable movements include Sanders Capital LLC, Capital World Investors, and Capital International Investors, which collectively adjusted their stakes in the company.

As analysts and investors continue to track Taiwan Semiconductor Manufacturing’s performance, the company’s robust financial results and strategic dividend policies offer insights into its current market positioning and investor sentiment. Institutional investors’ adjustments to their holdings reflect the dynamic nature of portfolio management in the semiconductor industry.