TSM stock: buy or sell?
August 22nd, 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. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.
None of our preferred buy setups matches with Taiwan Semiconductor Manufacturing stock situation right now, therefore this is not a suitable entry point.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is Taiwan Semiconductor Manufacturing stock a buy?
Financial institutions and banks publish stock ratings everyday.At Stocks2.com, we detected 3 ratings published for TSM stock in the last month.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-5-7||Goldman Sachs Group||n/a||Buy|
TSM stock analysis
After climbing for 4 days, Thursday Taiwan Semiconductor Manufacturing decreased a bad -1.06%, closing at $42.13.
After climbing for 4 days, Thursday Taiwan Semiconductor Manufacturing decreased a bad -1.06%, closing at $42.13. On Jul/22, TSM hit new all time highs, pushing higher previous ATH of $44.20 recorded on April. New ATHs are usual entry points for many trading setups as there aren't higher resistences. Since price and SMA200d lines crossed up on June, TSM climbed $3.97 (10.40%). On May, SMA100d and SMA200d crossed up triggering a rise of 14.27%. From a daily perspective, TSM is in a short term uptrend after plotting its last bottom ($40.25, on Aug/14) higher than the previous bottom, and its last top ($42.64, yesterday) 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 $42.64 or down under $40.25.
Shares of Taiwan Semiconductor Manufacturing closed this week at $42.13 and inched a good 1.42%. By mid July TSM boosted an outstanding 5.93% in just one week.
Price pattern shows an uptrend with two rising tops and bottoms, and now trading upwards to the $44.88 resistance. Not so far away is the last price record Taiwan Semiconductor Manufacturing marked late July. Since price and SMA40w lines crossed up by mid June, TSM climbed $5.48 (14.95%). Since early May when SMA20w and SMA40w crossed up, TSM price slipped $-1.17 per share (-2.70%).
TSM stock price history
TSM IPO was on October 9th, 1997 at $3.27 per share1. Since then, TSM stock surged a 1,188.40%, with an average of 56.60% per year. If you had invested $1,000 in TSM stock in 1997, it would worth $11,884.00 today.
1: Adjusted price after possible price splits or reverse-splits.
TSM stock historical price chart
TSM stock reached all-time highs on Jul 22nd with a price of $44.88.
TSM stock price target is $50.00Nobody can reliably foresee how stock prices may evolve in the future. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. Currently, only 1 price forecast for Taiwan Semiconductor Manufacturing stock was posted in the last month:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|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 published a $0.63 Earnings per Share. As soon as we get its actual EPS from the earnings report, we will update this review.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 2018, Taiwan Semiconductor Manufacturing annual sales jumped a good 5.52% to $1,031,360.00 million dollars from $977,443.00 marked in 2017. When comparing 2018 vs 2017, on the other hand, profit margin (that is, the net income divided by revenues) stayed stable a -0.09% to 35.20%.
|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 reported $289,847.00 million in sales for 2018-Q4, a 11.34% improvement compared to previous quarter. Reported quarter income marked $111,906.00 million 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 sales to same quarter last year, Taiwan Semiconductor Manufacturing sales marked a fine gain and raised a 4.41%. Looking back to recent quarterly results, Taiwan Semiconductor Manufacturing posted 2 positive 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 invest in a stock, it's worth to check 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.
The following table compares ownership indicators for other stocks related to Taiwan Semiconductor Manufacturing:
|Market cap||$218.7 B||$40.2 B||$43.8 B||$210.5 B||$104.3 B|
|Total shares||5,190.0 M||369.8 M||936.1 M||4,500.0 M||609.0 M|
|Float shares||4,500.0 M||368.3 M||926.0 M||4,430.0 M||584.5 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%|
|Thursday, August 22nd, 2019|
|Day range||$41.72 - $42.49|
|Average true range||$0.99|
|50d mov avg||$41.06|
|100d mov avg||$40.68|
|200d mov avg||$38.63|
Taiwan Semiconductor Manufacturing performanceTo better understand Taiwan Semiconductor Manufacturing performance you must becnhmark its gains with other related stocks in same sector or industry. For Taiwan Semiconductor Manufacturing, the benchmark is made against Analog Devices, Applied Materials, Intel, NVIDIA, STMicroelectronics, Tower Semiconductor, Texas Instruments and Xilinx.
Taiwan Semiconductor Manufacturing competitorsWe chose a few stocks to conform a list of Taiwan Semiconductor Manufacturing competitors to review 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