Insiders Could Be Selling Taiwan Semiconductor Manufacturing Company Limited (TSM) For Good

The 12-month median price target for Taiwan Semiconductor Manufacturing Company Limited (TSM) assigned by the analysts stands at $43.5, which represents a return potential of 18.82 percent when compared to the closing price of the stock of $36.61 on Friday, January 11. The lowest price target for the stock is $32 — slightly more than -12.59 percent from TSM’s current share price. The stock will probably climb 20.6 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $50-month high price target. This represents a whopping 36.57 percent increase from where shares are trading today.

On momentum oscillators front, ‘RSI’ has touched 51.61 on daily chart, which may remain a cause for concern. If the price breaks below $36 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $36.84 mark may result into a pull-back move towards $37.07 level. The stock is currently hovering around the first support level of $36.31. Below this, the next support is placed in the zone of $36. Till the time, the TSM stock trades above this level, bulls have nothing to fear.

Shares of Taiwan Semiconductor Manufacturing Company Limited (TSM) are trading at a P/E ratio of 17.26 times earnings reported for the past 12 months. The industry TSM operates in has an average P/E of 14.37. Its P/E ratio went as low as 12.63X and as high as 16.27 over the 5-year span. Further, it is sporting a 5.5 on the Price-to-Sales ratio. Compare this with the industry average P/S of 11.59. 48.9 percent is the gross profit margin for Taiwan Semiconductor Manufacturing Company Limited and operating margin sits at 37.8 percent. Along with this, the net profit margin is 34.4 percent.

On 11th of January, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) shares ended higher after a volatile session. The shares accumulated 0.19 points or 0.52 percent at $36.61 with a light trade volume of 7.209 million shares. After opening the session at $36.45, the shares went as high as $36.77 and as low as $36.235, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $182 billion and now has 4.97 billion shares outstanding. Taiwan Semiconductor Manufacturing Company Limited (TSM) stock has lost -0.25 percent of market value in 21 trading days.

TSM stock has a trailing 3-year beta of 1.06, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $2.2 a share in the trailing twelve months. The stock’s value has fallen -0.81 percent year to date (YTD) against a decline of -11.36 percent in 12 month’s time. The company’s shares still trade -21.39 percent away from its 1-year high of $46.57 and 7 percent up from 52-week low of $34.21. The average consensus rating on the company is 2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.