Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM): What Do Wall Street Experts Say?

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) price is hovering lower on Tuesday, August 16, dropping -3.19% below its previous close.

A look at today’s price movement shows that the recent level at last check reads $91.57, with intraday deals fluctuating between $90.00 and $91.94. The company’s 5Y monthly beta was ticking 1.12 while its P/E ratio in the trailing 12-month period read 18.69. Taking into account the 52-week price action we note that the stock hit a 52-week high of $145.00 and 52-week low of $73.74. The stock added 6.94% on its value in the past month.

Taiwan Semiconductor Manufacturing Company Limited, which has a market valuation of $447.78 billion. The company stock has a Forward Dividend ratio of 1.90, while the dividend yield is 2.08%. It is understandable that investor optimism is growing ahead of the company’s current quarter results. Analysts tracking TSM have forecast the quarterly EPS to shrink by 0 per share this quarter, while the same analysts predict the annual EPS to hit $0 for the year 2022 and up to $0 for 2023.

On average, analysts have forecast the company’s revenue for the quarter will hit $20.24 billion, with the likely lows of $19.92 billion and highs of $20.56 billion. The average estimate suggests sales growth for the quarter will likely rise by 36.00% when compared to those recorded in the same quarter in the last financial year. Staying with the analyst view, there is a consensus estimate of $75.15 billion for the company’s annual revenue in 2022. Per this projection, the revenue is forecast to grow 32.30% above that which the company brought in 2022.

Revisions to the company’s EPS highlights a short term direction of a stock’s price movement, which in the last 7 days came up with 2 upward and no downward reviews. On the technical perspective front, indicators give TSM a short term outlook of Hold on average. Looking at the stock’s medium term indicators we note that it is averaging as a 50% Sell, while an average of long term indicators are currently assigning the stock as 100% Sell.

Here is a look at the average analyst rating for the stock as represented on a scale of 1.00 to 5.00, with the extremes of 1.00 and 5.00 suggesting the stock is strong buy or strong sell respectively. Specifically, 37 analysts have assigned TSM a recommendation rating as follows: 3 rate it as a Hold; 28 advise Buy while 6 analyst(s) assign an Overweight rating. 0 analyst(s) have tagged the Taiwan Semiconductor Manufacturing Company Limited (TSM) stock as Underweight, with 0 recommending Sell. In general, analysts have rated the stock Buy, a scenario likely to bolster investors out for an opportunity to add to their holdings of the company’s shares.

If we dive deeper into the stock’s performance we see the positive picture represented by the PEG ratio, currently standing at 0.77. The overview shows that TSM’s price is at present 1.14% off the SMA20 and 3.11% from the SMA50. The Relative Strength Index (RSI) metric on the 14-day timeframe is pointing at 53.04, with weekly volatility standing at 2.38%. The indicator jumps to 2.42% when calculated based on the past 30 days. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s beta value is holding at 0.98, while the average true range (ATR) indicator is currently reading 2.54. Considering analysts have assigned the stock a price target range of $80.00-$146.00 as the low and high respectively, we find the trailing 12-month average consensus price target to be $113.76. Based on this estimate, we see that today’s price at last check is roughly 9.76% off the estimated low and -64.69% off the forecast high. Investors will no doubt be excited to see the share price fall to $120.00, which is the median consensus price, and at that level TSM would be -35.36% from recent price.

Turning out attention to how the Taiwan Semiconductor Manufacturing Company Limited stock has performed in comparison to its peers in the industry, here’s what we find: TSM’s stock is -3.19% on the day and -20.72% in the past 12 months, while NVIDIA Corporation (NVDA) traded -1.76% in the latest session and is positioned -5.73% down on its price 12 months ago. Another comparison is with Analog Devices Inc. (ADI) whose stock price is down -1.33% in the current trading session, and has flourished 5.77% over the past year. Also, Texas Instruments Incorporated (TXN) is currently showing down trend of -1.15% while its price kept floating at -1.75% over the past year. As for Taiwan Semiconductor Manufacturing Company Limited, the P/E ratio stands at 18.69 lower than that of NVIDIA Corporation’s at 51.07 and Analog Devices Inc.’s 51.03. Elsewhere in the market, the S&P 500 Index has stumbled -0.39% in today’s early trading, with the Dow Jones Industrial also seeing a positive session on the day with 0.09%.

An analysis of the Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stock in terms of its daily trading volume indicates that the 3-month average is 10.98 million. However, this figure increases on the past 10-day timeline to an average of 13.82 million.

Current records show that the company has 5.19B in outstanding shares. The insiders’ percentage holdings are 0.04% of outstanding shares while the percentage share held by institutions stands at 17.40%. The stats also highlight that short interest as of Jul 28, 2022, stood at 25.79 million shares, which puts the short ratio at the time at 2.13. From this we can glean that short interest is 0.50% of company’s current outstanding shares. Notably, we see that shares short in July rose slightly given the previous month’s figure stood at 14.77 million. But the -23.89% downside, the stock’s price has registered year-to-date as of today’s value, will likely reignite investor interest given the prospect of it rallying even higher.

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