Hyperion Capital Advisors LP has decreased its investment in Taiwan Semiconductor Manufacturing Company Ltd. (TSM) by 51.8% during the second quarter of 2023. Following this adjustment, the institutional investor now holds 5,423 shares of the semiconductor firm, having sold 5,835 shares in the recent quarter. This reduction means that Taiwan Semiconductor represents approximately 0.8% of Hyperion’s overall investment portfolio, making it the company’s 19th largest investment, valued at around $1.23 million as per the latest filings with the U.S. Securities and Exchange Commission.
The semiconductor sector has seen a flurry of activity from institutional investors in recent months. For instance, Powers Advisory Group LLC entered the market with a new stake in Taiwan Semiconductor valued at about $240,000 during the same quarter. Additionally, Hudson Edge Investment Partners Inc. increased its holdings by 10.1%, bringing its total to 236,503 shares worth approximately $53.57 million after acquiring an additional 21,648 shares.
Another significant player, Quantbot Technologies LP, ramped up its investment dramatically, with a 452.2% increase in shares during the first quarter, ultimately owning 47,425 shares valued at $7.87 million. Furthermore, RFG Holdings Inc. expanded its stake by 66.1%, owning 3,898 shares valued at $883,000 after buying 1,551 more shares. In a notable move, Duquesne Family Office LLC increased its holdings by an astonishing 456.9% in the first quarter, now controlling 598,780 shares valued at around $99.4 million. Overall, institutional investors hold approximately 16.51% of Taiwan Semiconductor’s stock.
Analyst Ratings and Stock Performance
Several analysts have recently provided updates on Taiwan Semiconductor’s stock. Barclays revised its price target from $330.00 to $355.00 and assigned an “overweight” rating on October 17, 2023. Similarly, Weiss Ratings reaffirmed their “buy” rating, while Citigroup maintained a “buy” rating on the same day. Itau BBA Securities initiated coverage, giving the company an “outperform” rating. Additionally, Susquehanna increased its target price from $300.00 to $400.00, reflecting a positive outlook.
As of October 16, 2023, shares of Taiwan Semiconductor opened at $291.87, experiencing a 4.3% decline. The company boasts a market capitalization of $1.51 trillion, a price-to-earnings ratio of 29.94, and a debt-to-equity ratio of 0.19. The stock has fluctuated between a 52-week low of $134.25 and a high of $313.98.
In its latest earnings report, Taiwan Semiconductor posted earnings per share (EPS) of $2.92 for the quarter, surpassing analysts’ consensus estimate of $2.59 by $0.33. The firm’s revenue reached $32.36 billion, significantly exceeding expectations of $951.89 billion, marking a year-over-year revenue growth of 40.1%.
Dividend Increase and Future Outlook
In addition to its stock performance, Taiwan Semiconductor recently announced an increase in its quarterly dividend, set to be distributed on April 9, 2024. Shareholders on record as of March 17, 2024, will receive a dividend of $0.9678, up from the previous $0.83. This raises the annualized dividend to $3.87, yielding approximately 1.3%. The company’s payout ratio currently stands at 25.85%.
Taiwan Semiconductor Manufacturing Company, along with its subsidiaries, is a leader in manufacturing, packaging, testing, and selling integrated circuits and other semiconductor devices globally, including markets in Taiwan, China, Europe, and the United States. With a comprehensive range of wafer fabrication processes, the company is well-positioned in the tech industry, serving various sectors, including logic, mixed-signal, and embedded memory applications.
As the semiconductor market continues to evolve, investors and analysts will be closely monitoring Taiwan Semiconductor’s performance and strategic developments.
