TSM stock: buy or sell?
October 18th, 2019
Taiwan Semiconductor Manufacturing Company Limited., together with its subsidiaries, engages in the computer-aided design, manufacture, packaging, testing, sale, and marketing of integrated circuits, color filters, and other semiconductor devices primarily in Taiwan.
Should I buy TSM stock?Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Following a trading plan helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.
Currently, 2 buy setups are elegible for Taiwan Semiconductor Manufacturing stock now:
|New all-time high||Yes|
|New 52 week high||Yes|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is Taiwan Semiconductor Manufacturing stock a buy?
Banks and financial institutions post stock ratings everyday.At Stocks2.com, we detected 5 ratings published for TSM stock in the last 30 days.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-9-4||Morgan Stanley||Equal Weight||Overweight|
|2019-9-30||Goldman Sachs Group||Buy||Conviction-Buy|
|2019-5-7||Goldman Sachs Group||n/a||Buy|
TSM stock analysis
Taiwan Semiconductor Manufacturing depreciated -0.94% to $49.28 after yesterday all time highs.
After topping to all time highs on Thursday, Taiwan Semiconductor Manufacturing depreciated -0.94% on October 18th to $49.28. From a daily perspective, TSM is in a short term uptrend after plotting its last bottom ($46.24, on October/3) higher than the previous bottom, and its last top ($51.21, on Thursday) also over the previous top. Now trading in between its last bottom and last top TSM might consolidate in a plain range, waiting to break out over $51.21 or down under $46.24. Since June when TSM stock price broke up the SMA200d line, it gained $11.39 (30.06%). On August, SMA50d and SMA100d crossed up triggering a rise of 21.17%. On Thursday, TSM hit new all time highs, pushing higher previous ATH of $51.13 recorded on Wednesday. New ATHs are usual entry points for many trading setups as there aren't higher resistences.
Shares of Taiwan Semiconductor Manufacturing closed this week at $49.28 after topping to a new all time high ($51.21) even it couldn't close with gains and remained stable an ugly -0.28%.
Price pattern shows an uptrend with two rising tops and bottoms, and now finally trading above the $44.56 resistance. Since mid June when TSM stock price broke up the SMA40w line, it gained $12.89 (35.42%). Since SMA20d and SMA40w crossed up early May, TSM price climbed $6.29 per share (14.63%).
TSM stock price history
TSM stock went public on October 9th, 1997 with a price of $3.151. Since then, TSM stock surged a 1,464.40%, with a yearly average of 66.60%. If you had invested right after TSM's IPO a $1,000 in TSM stock in 1997, it would worth $14,644.00 today.
1: Adjusted price after possible price splits or reverse-splits.
TSM stock historical price chart
TSM stock reached all-time highs on Thursday with a price of $51.21.
TSM stock price target is $52.50Nobody can reliably foresee how stock prices may evolve in the future. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. We found 2 price forecasts for Taiwan Semiconductor Manufacturing stock published in the last 30 days:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-9-30||Goldman Sachs Group||Upgrades||n/a||$55.00||-|
|2019-5-7||Goldman Sachs Group||Initiates||n/a||$50.00||-|
Financials and fundamental analysis
Earnings date and Earnings per ShareOn January, Taiwan Semiconductor Manufacturing presented its financial report, close to analysts' consensus and posted a $0.63 Earnings per Share. Unfortunately, reported EPS is not yet available in our database.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared to 2017, last anual revenues report draw a fine increase of 5.52% to $1,031,360.00 M dollars. By contrast, its earnings margin (compared to sales) stayed stable to 35.20%, that is $363,053.00 million.
|2013||$597,000 M||-||$188,150 M31.5%||-|
|2014||$762,835 M||27.78%||$254,301 M33.3%||35.16%|
|2015||$843,512 M||10.58%||$302,851 M35.9%||19.09%|
|2016||$947,909 M||12.38%||$331,714 M35.0%||9.53%|
|2017||$977,443 M||3.12%||$344,998 M35.3%||4.00%|
|2018||$1,031,360 M||5.52%||$363,053 M35.2%||5.23%|
Quarterly financial resultsTaiwan Semiconductor Manufacturing posted $289,847.00 M in sales for 2018-Q4, a 11.34% up compared to previous quarter. Reported quarter earnings marked $111,906.00 M with a profit margin of 38.61%. Profit margin stepped up a 4.39% compared to previous quarter when profit margin was 34.21%. When comparing turnover to same quarter last year, Taiwan Semiconductor Manufacturing sales marked a good increase and gained a 4.41%. Looking back to recent quarterly results, Taiwan Semiconductor Manufacturing posted 2 negative quarters in a row.
|2017-Q1||$233,920 M||-||$87,630 M37.5%||-|
|2017-Q2||$213,810 M||-8.60%||$66,270 M31.0%||-24.38%|
|2017-Q3||$8,313 M||-96.11%||$2,965 M35.7%||-95.53%|
|2017-Q4||$277,603 M||3,239.29%||$101,173 M36.4%||3,311.91%|
|2018-Q1||$247,962 M||-10.68%||$89,785 M36.2%||-11.26%|
|2018-Q2||$233,220 M||-5.95%||$72,291 M31.0%||-19.48%|
|2018-Q3||$260,334 M||11.63%||$89,072 M34.2%||23.21%|
|2018-Q4||$289,847 M||11.34%||$111,906 M38.6%||25.64%|
Taiwan Semiconductor Manufacturing ownershipWhen you are planning to buy shares of a company, it's always worth to overview its ownership structure.
Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Taiwan Semiconductor Manufacturing, 0.04% of all outstanding shares are owned by its staff.
In case of Taiwan Semiconductor Manufacturing stock, 19.92% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for TSM stock account 0.00%, no big difference from last month.
For a better understanding, the next table shows ownership data compared to other related companies:
|Market cap||$255.8 B||$40.4 B||$47.7 B||$227.5 B||$116.0 B|
|Total shares||5,190.0 M||369.4 M||923.8 M||4,430.0 M||609.0 M|
|Float shares||4,500.0 M||367.9 M||920.3 M||4,430.0 M||584.2 M|
|- Institutional holdings (%)||19.9%||92.5%||81.5%||68.8%||72.8%|
|- Insider holdings (%)||0.0%||0.3%||0.3%||0.1%||4.3%|
|Shares in short selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Friday, October 18th, 2019|
|Day range||$49.13 - $50.09|
|Average true range||$0.99|
|50d mov avg||$44.53|
|100d mov avg||$42.26|
|200d mov avg||$40.31|
Taiwan Semiconductor Manufacturing performanceTo measure stock performance is always good to compare with competitors or related stocks. We chose Analog Devices, Applied Materials, Intel, NVIDIA, STMicroelectronics, Tower Semiconductor, Texas Instruments and Xilinx as the bechmarking frame for Taiwan Semiconductor Manufacturing stock.
Taiwan Semiconductor Manufacturing competitorsWe chose a few stocks to conform a list of Taiwan Semiconductor Manufacturing competitors to check if you are interested in investing in TSM:
- Analog Devices (ADI)
- Applied Materials (AMAT)
- Intel (INTC)
- NVIDIA (NVDA)
- STMicroelectronics (STM)
- Tower Semiconductor (TSEM)
- Texas Instruments (TXN)
- Xilinx (XLNX)
Latest TSM stock news
- Seeking AlphaTaiwan Semiconductor Manufacturing: Still Looking Good For The Long HaulOctober 22, 2018