Chilton Investment Co. Inc. significantly expanded its holdings in Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM) during the third quarter of 2023, increasing its position by an impressive 195.1%. According to a recent filing with the Securities and Exchange Commission (SEC), Chilton now owns 3,285 shares of the semiconductor giant, valued at approximately $917,000 following the acquisition of an additional 2,172 shares during the quarter.
Several other institutional investors also made notable adjustments to their positions in TSMC. Fisher Asset Management LLC increased its stake by 1.0%, now holding 17,833,127 shares worth about $4.98 billion after acquiring an additional 168,171 shares. Meanwhile, Massachusetts Financial Services Co. MA raised its position by 3.6%, bringing its total to 15,759,419 shares valued at $4.4 billion, following the acquisition of 541,047 shares.
Additionally, Bank of America Corp DE and Jennison Associates LLC also lifted their stakes in TSMC by 0.9% and 4.5%, respectively, with holdings now at 14,935,893 shares worth approximately $4.17 billion and 12,591,542 shares valued at $3.52 billion. Lastly, AllianceBernstein L.P. boosted its position by 2.2%, now owning 10,687,037 shares worth $2.98 billion. Overall, institutional investors collectively hold 16.51% of TSMC’s stock.
Analysts React to TSMC Developments
The investment community is closely monitoring TSMC, with several research reports recently published. Freedom Capital upgraded TSMC to a “strong-buy” rating on January 15, 2024. Following this, Barclays raised its target price from $380.00 to $450.00, assigning an “overweight” rating on January 16, 2024. Conversely, on March 5, 2024, Weiss Ratings downgraded the stock from a “buy” to a “hold” rating.
The stock has garnered attention, with four analysts rating it as a strong buy, nine issuing a buy rating, and two assigning a hold rating. Analysts at MarketBeat report an average rating of “buy” and a target price of $391.43.
Recent news also highlights TSMC’s commanding position in the global foundry market, which now stands at about 70%. This dominance supports its pricing power and strategic importance to chip customers, contributing to revenue and margin stability.
Financial Performance and Market Position
On February 26, 2024, TSMC announced its latest earnings results, revealing earnings per share of $3.11 for the quarter, alongside a net margin of 45.13% and a return on equity of 34.89%. The company reported revenue of $30.65 billion for the same period. Looking ahead, analysts forecast an average of $9.20 earnings per share for the current fiscal year.
As for the stock’s performance, TSM opened at $338.22 on the latest trading day. Over the past year, the stock has ranged from a low of $134.25 to a high of $390.20, reflecting the volatility often seen in the semiconductor sector. TSMC’s market capitalization currently stands at $1.75 trillion, with a P/E ratio of 31.76 and a P/E/G ratio of 0.93.
TSMC’s strong financial health is further illustrated by its liquidity metrics, including a current ratio of 2.62 and a quick ratio of 2.42. The company also maintains a low debt-to-equity ratio of 0.17, indicating a solid balance sheet.
In terms of shareholder returns, TSMC announced a quarterly dividend of $0.9503 per share, payable on July 9, 2024, to shareholders of record on June 11, 2024. This represents an annualized dividend of $3.80, yielding approximately 1.1%.
Founded in 1987 by Morris Chang and headquartered in Hsinchu, Taiwan, TSMC has established itself as a leading pure-play semiconductor foundry. The company manufactures integrated circuits for fabless and integrated device manufacturers, offering an extensive range of technologies and products to meet the evolving demands of the global semiconductor industry.
