Greenwich Wealth Management Increases Stake in Taiwan Semiconductor

Greenwich Wealth Management LLC has raised its investment in shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM) by 5.5% during the second quarter of 2023, as revealed in its latest Form 13F filing with the U.S. Securities and Exchange Commission (SEC). The firm now holds 7,362 shares of the semiconductor giant, having acquired an additional 386 shares within the reporting period. As of the conclusion of this period, Greenwich’s stake in Taiwan Semiconductor was valued at approximately $1.67 million.

Other institutional investors have also shown interest in Taiwan Semiconductor Manufacturing. Mid American Wealth Advisory Group Inc. purchased a new stake valued at around $33,000 in the second quarter. First Command Advisory Services Inc. made a significant move by increasing its holdings by 174.1%, bringing its total to 159 shares, worth approximately $36,000 after acquiring an additional 101 shares. Additionally, 1248 Management LLC and Vision Financial Markets LLC entered new positions in the first quarter, valued at $28,000 and $33,000 respectively. Furthermore, VSM Wealth Advisory LLC acquired shares during the second quarter at a value of $50,000. Collectively, institutional investors and hedge funds now own 16.51% of the company’s stock.

Analysts Respond with Varied Ratings

As the market continues to evaluate Taiwan Semiconductor Manufacturing, analysts have provided differing perspectives on its stock. On October 6, Wall Street Zen adjusted its rating from “buy” to “hold.” Conversely, Itau BBA Securities initiated coverage with an “outperform” rating on October 7. Weiss Ratings reaffirmed a “buy (b-)” rating, while Citigroup reiterated its “buy” rating on October 17. Notably, Susquehanna increased its target price for the stock from $300.00 to $400.00, assigning a “positive” outlook. According to data from MarketBeat.com, six analysts currently recommend buying the stock, with an average rating of “buy” and a consensus target price of $371.67.

Strong Financial Performance

Trading on October 16, the stock opened at $292.00. Taiwan Semiconductor Manufacturing Company has demonstrated robust financial metrics, including a current ratio of 2.37, a quick ratio of 2.15, and a low debt-to-equity ratio of 0.20. Over the past year, the stock has seen a low of $134.25 and a high of $311.37, reflecting its volatility and market interest. The company boasts a market capitalization of $1.51 trillion, a price-to-earnings (P/E) ratio of 29.95, a price-to-earnings growth (PEG) ratio of 1.02, and a beta of 1.31. Its 50-day moving average stands at $290.31, while the 200-day average is $249.51.

On October 16, Taiwan Semiconductor released its earnings report showing earnings per share (EPS) of $2.92, exceeding expectations of $2.59 by $0.33. The company’s net margin was recorded at 43.72%, with a return on equity of 36.06%. Revenue for the quarter reached $32.36 billion, significantly higher than the consensus estimate of $31.89 billion, marking a 40.1% increase compared to the same period last year. The company has provided guidance for Q4 2023, forecasting an EPS of $9.20 for the current year.

In addition to its stock performance, Taiwan Semiconductor has announced a quarterly dividend of $0.9678 per share, set to be paid on April 9, 2024, to shareholders of record by March 17, 2024. This marks an increase from the previous quarterly dividend of $0.83. The ex-dividend date is also March 17, 2024. This dividend equates to an annualized payout of $3.87 and a yield of 1.3%, with a current dividend payout ratio of 26.97%.

Taiwan Semiconductor Manufacturing Company Limited, headquartered in Taiwan, is a leading global manufacturer of integrated circuits and semiconductor devices. The company provides a wide range of wafer fabrication processes, producing various technologies including complementary metal-oxide-semiconductor (CMOS) logic and embedded memory. Its extensive operations span across regions including China, Europe, and the United States, solidifying its position as a key player in the semiconductor industry.