Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) stock fell -0.30% on Friday to $86.05 against a previous-day closing price of $86.31. With 15.51 million shares changed hands, the volume of the stock remained heavier than its average volume of 10.43 million shares. During the session, the Semiconductors company that operates in wider Technology sector, reached to the highest price of $87.51 whereas the lowest price it dropped to was $84.17. The 52-week range on TSM shows that it touched its highest point at $145.00 and its lowest point at $73.74 during that stretch. It currently has a 1-year price target of $129.98. With its current market cap of 422.68 billion, TSM has annualized dividend of $1.90 while the current yield stands at 2.21%. Beta for the stock currently stands at 0.99.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of TSM was up-trending over the past week, with a rise of 1.93%, but this was up by 11.75% over a month. Three-month performance dropped to -8.22% while six-month performance fell -29.83%. The stock lost -26.36% in the past year, while it has lost -28.48% so far this year. A look at the trailing 12-month EPS for TSM yields 4.92 with Next year EPS estimates of 6.29. For the next quarter, that number is 1.72. This implies an EPS growth rate of 15.20% for this year and -1.19% for next year. EPS is expected to grow by 24.20% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 12.30%.
Float and Shares Shorts:
At present, 5.19 billion TSM shares are outstanding with a float of 4.86 billion shares on hand for trading. On Jul 14, 2022, short shares totaled 21.4 million, which was 0.41% higher than short shares on Jun 14, 2022. In addition to Dr. C. C. Wei as the firm’s Vice Chairman & CEO, Mr. Jen-Chau Huang serves as its VP & CFO.
Through their ownership of 17.34% of TSM’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 7.33% of TSM, in contrast to 10.50% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in TSM with 0.80% of the stake, Sanders Capital LLC holds 41,631,855 shares worth 41,631,855. A second-largest stockholder of TSM, Capital Research & Management Co, holds 36,083,127 shares, controlling over 0.70% of the firm’s shares. Capital Research & Management Co is the third largest shareholder in TSM, holding 29,492,324 shares or 0.57% stake. With a 0.52% stake in TSM, the American Balanced Fund is the largest stakeholder. A total of 26,797,395 shares are owned by the mutual fund manager. The Vanguard Emerging Markets Stock I, which owns about 0.24% of TSM stock, is the second-largest Mutual Fund holder. It holds 12,228,753 shares valued at 999.7 million. VanEck Vectors Semiconductor ETF holds 0.16% of the stake in TSM, owning 8,389,103 shares worth 685.81 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2022, TSM reported revenue of $491.08B and operating income of $223.79B. Over the past year, revenue came in at $1.72T while operating income stood at $723.23B. It generated $202.73B net income for the quarter, which came to $655.40B over the last twelve months. The EBITDA in the recently reported quarter was $338.86B and diluted EPS was $39.10. EBITDA for the full year was $1.17T.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TSM since 37 analysts follow the stock currently. There are 28 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 3 believe that the stock is worth HOLDING, 6 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With TSM analysts setting a high price target of $146.00 and a low target of $88.00, the average target price over the next 12 months is $115.36. Based on these targets, TSM could surge 69.67% to reach the target high and rise by 2.27% to reach the target low. Reaching the average price target will result in a growth of 34.06% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. TSM will report FY 2022 earnings on 01/12/2023. Analysts have provided yearly estimates in a range of $6.35 being high and $5.47 being low. For TSM, this leads to a yearly average estimate of $6.14. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Taiwan Semiconductor Manufacturing Company Limited surprised analysts by $0.09 when it reported $1.53 EPS against a consensus estimate of $1.44. The surprise factor in the prior quarter was $0.08. Based on analyst estimates, the high estimate for the next quarter is $1.75 and the low estimate is $1.46. The average estimate for the next quarter is thus $1.67.