Fernbridge Capital Management LP has decreased its stake in Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM) by 38.5% during the third quarter of 2023, according to the firm’s latest filing with the U.S. Securities and Exchange Commission (SEC). Following the sale of 89,242 shares, Fernbridge now holds 142,260 shares, which represent approximately 1.9% of its overall investment portfolio. The current value of its holdings in Taiwan Semiconductor amounts to $39.73 million.
This adjustment positions Taiwan Semiconductor as Fernbridge’s 18th largest holding. Other institutional investors have also made notable changes to their positions in TSM, reflecting a broader trend among large stakeholders in the semiconductor industry.
Institutional Investment Trends
Westfuller Advisors LLC increased its holdings in Taiwan Semiconductor by 2.2% during the same quarter, acquiring an additional 34 shares to bring its total to 1,551 shares valued at $434,000. Similarly, BankPlus Wealth Management LLC raised its stake by 1.6%, now owning 2,291 shares worth $640,000 after adding 35 shares.
Bank of Jackson Hole Trust saw a more significant increase, boosting its holdings by 7.5% and now possessing 500 shares valued at $140,000. New Millennium Group LLC expanded its stake by 2.9%, acquiring 1,248 shares valued at $349,000. Lastly, Empirical Asset Management LLC increased its holdings by 1.8%, now owning 2,008 shares worth $561,000. Overall, institutional investors hold about 16.51% of Taiwan Semiconductor’s stock.
Recent Financial Performance and Analyst Ratings
Taiwan Semiconductor announced its quarterly earnings on February 26, 2024, reporting $3.11 in earnings per share (EPS) for the quarter. The company achieved a net margin of 45.13% and a return on equity of 34.89%, with total revenue reaching $30.65 billion. Analysts forecast that TSM will post an EPS of 9.2 for the current year.
In recent dividend news, Taiwan Semiconductor declared a quarterly dividend of $0.9503, scheduled for payout on July 9, 2024. Shareholders of record on June 11, 2024, will receive this dividend, which reflects an annualized yield of 1.1% and a payout ratio of 23.57%.
Analysts have varied opinions on TSM shares. On January 15, 2024, Needham & Company LLC raised its target price from $360.00 to $410.00 with a “buy” rating. Conversely, Weiss Ratings downgraded the stock from a “buy (b-)” to a “hold (c+)” on March 5, 2024. Citigroup and The Goldman Sachs Group both reiterated their “buy” ratings, while Dbs Bank upgraded TSM to a “moderate buy” on January 23, 2024. Currently, TSM holds an average rating of “buy” with a consensus target price of $391.43.
Taiwan Semiconductor Manufacturing Company, established in 1987 by Morris Chang and headquartered in Hsinchu, Taiwan, is a leading player in the semiconductor foundry industry. It specializes in wafer fabrication and provides a wide range of services to global semiconductor manufacturers, focusing on advanced technologies critical for applications in mobile, high-performance computing, and artificial intelligence.
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