Banque Pictet & Cie SA has trimmed its holdings in Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM) by 0.5%, now owning shares valued at approximately $154.78 million. According to a recent filing with the Securities and Exchange Commission (SEC), the firm held 554,944 shares after selling 3,006 shares in the third quarter of 2023. This reduction positions Taiwan Semiconductor as the 13th largest holding within Banque Pictet’s portfolio, accounting for 0.9% of its total investments.
Other institutional investors have also adjusted their positions in Taiwan Semiconductor. For instance, Bank of America Corp increased its stake by 0.8% during the second quarter, acquiring an additional 115,158 shares. This brings their total to 14,805,720 shares, valued at $3.35 billion. Similarly, Jennison Associates LLC boosted its holdings by 26.7%, totaling 12,046,792 shares worth $2.73 billion.
Further notable increases include AllianceBernstein L.P., which raised its position by 18.0% with 10,457,800 shares valued at $2.37 billion, and WCM Investment Management LLC, which increased its holdings by 3.3% to 10,058,659 shares. Sands Capital Management LLC also reported a 6.5% increase, bringing its total to 8,552,278 shares worth $1.94 billion. Overall, institutional investors now control 16.51% of Taiwan Semiconductor’s stock.
Stock Performance and Recent Developments
On November 14, 2023, Taiwan Semiconductor’s stock opened at $303.77. The company boasts a debt-to-equity ratio of 0.19, with a quick ratio of 2.47 and a current ratio of 2.69. Over the past year, shares have fluctuated between a low of $134.25 and a high of $313.98. With a market capitalization of $1.57 trillion, the company has a P/E ratio of 31.16 and a price-to-earnings-growth ratio of 1.04.
Taiwan Semiconductor recently reported earnings of $14.32 per share for the quarter. The firm has demonstrated a return on equity of 34.34% and a net margin of 43.72%. Analysts forecast an average earnings per share of $9.20 for the current fiscal year.
In addition to its financial performance, Taiwan Semiconductor announced a quarterly dividend of $0.9678 per share, set to be paid on April 9, 2024, to investors of record as of March 17, 2024. This dividend marks an increase from the previous amount of $0.83, representing an annualized dividend of $3.87 and a yield of 1.3%. The company’s payout ratio currently stands at 25.85%.
Analyst Ratings and Market Sentiment
Recent reports from equity research analysts indicate a positive outlook for Taiwan Semiconductor. UBS Group has set a price target of $330.00, while Needham & Company LLC maintains a “buy” rating with a price objective of $360.00. Barclays raised its target from $330.00 to $355.00, endorsing an “overweight” rating.
Overall, Taiwan Semiconductor has received a consensus rating of “buy” from seven analysts, with an average price target of $355.00, according to data from MarketBeat.com.
Recent developments have also contributed to a positive sentiment surrounding the company. The U.S. government granted Taiwan Semiconductor an annual license to import chipmaking equipment into its Nanjing facility in China, reinforcing local production capabilities. Additionally, strong demand for artificial intelligence products, particularly from Nvidia, has prompted requests for increased production of AI chips, positively impacting Taiwan Semiconductor’s near-term revenue prospects.
As Taiwan Semiconductor continues to progress with its 2nm chip production, the company’s technical leadership is expected to enhance its competitive edge and pricing power in the semiconductor industry. With a solid foundation and positive market sentiment, Taiwan Semiconductor remains a key player in the global semiconductor landscape.
