New Street slashes price target on Taiwan Semiconductor Manufacturing Company Limited [TSM] – find out why.

Taiwan Semiconductor Manufacturing Company Limited [NYSE: TSM] slipped around -1.58 points on Monday, while shares priced at $86.73 at the close of the session, down -1.79%. The company report on August 25, 2020 that Marvell and TSMC Collaborate to Deliver Industry’s Most Advanced Data Infrastructure Portfolio on 5nm Technology.

Marvell (NASDAQ: MRVL), a leading provider of data infrastructure semiconductor solutions, today announced an extension of their long term partnership with TSMC (TWSE: 2330; NYSE:TSM), the world’s largest dedicated semiconductor foundry, to deliver a comprehensive silicon portfolio for the data infrastructure market leveraging the industry’s most advanced 5 nanometer (nm) process technology. Next-generation infrastructure has never been more critical to the global economy. It’s what’s keeping the world connected, businesses running and information flowing. With this collaboration, Marvell and TSMC are advancing the essential technology underpinning this infrastructure to provide the storage, bandwidth, speed, and intelligence that tomorrow’s digital economy demands – with the added customer benefit of significant energy efficiency. Built in partnership with TSMC on the most advanced process technology currently in volume production, Marvell’s new 5nm portfolio will enable leading-edge silicon innovation for the infrastructure market.

Marvell’s breakthrough 5nm portfolio will provide the essential high-performance compute, networking and security technology required to advance infrastructure development for a multitude of end-market applications. Marvell’s Ethernet connectivity solutions enable high-performance, low-power network connectivity, optimized for applications that span cloud data centers to the harsh environment of the automotive market. Marvell’s OCTEON® platform is the industry’s leading Arm-based high-performance compute architecture for embedded infrastructure applications targeting a wide variety of wired and wireless networking equipment including switches, routers, secure gateways, firewalls, and network monitoring solutions. OCTEON is the world’s most widely deployed data processing unit (DPU) for data-center scale computing and enables a multitude of acceleration and offload capabilities, including Smart NICs and security accelerators. Featuring optimized and customized 5G processing and baseband capabilities, Marvell’s OCTEON Fusion® platform is pushing the boundaries of wireless network infrastructure.

Taiwan Semiconductor Manufacturing Company Limited stock is now 49.28% up from its year-to-date (YTD) trading value. TSM Stock saw the intraday high of $87.78 and lowest of $85.77 per share. The company’s 52-week high price is 91.27, which means current price is +103.11% above from all time high which was touched on 10/12/20.

Compared to the average trading volume of 10.78M shares, TSM reached a trading volume of 5558738 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Taiwan Semiconductor Manufacturing Company Limited [TSM]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for TSM shares is $77.27 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on TSM stock is a recommendation set at 2.40. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

New Street have made an estimate for Taiwan Semiconductor Manufacturing Company Limited shares, keeping their opinion on the stock as Buy, with their previous recommendation back on August 28, 2020. The new note on the price target was released on July 27, 2020, representing the official price target for Taiwan Semiconductor Manufacturing Company Limited stock.

The Average True Range (ATR) for Taiwan Semiconductor Manufacturing Company Limited is set at 1.96, with the Price to Sales ratio for TSM stock in the period of the last 12 months amounting to 8.96. The Price to Book ratio for the last quarter was 7.51, with the Price to Cash per share for the same quarter was set at 4.60.

How has TSM stock performed recently?

Taiwan Semiconductor Manufacturing Company Limited [TSM] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.95. With this latest performance, TSM shares gained by 9.95% in over the last four-week period, additionally plugging by 64.39% over the last 6 months – not to mention a rise of 69.63% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for TSM stock in for the last two-week period is set at 53.88, with the RSI for the last a single of trading hit 50.36, and the three-weeks RSI is set at 56.14 for Taiwan Semiconductor Manufacturing Company Limited [TSM]. The present Moving Average for the last 50 days of trading for this stock 82.54, while it was recorded at 87.83 for the last single week of trading, and 63.65 for the last 200 days.

Taiwan Semiconductor Manufacturing Company Limited [TSM]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Taiwan Semiconductor Manufacturing Company Limited [TSM] shares currently have an operating margin of +34.88 and a Gross Margin at +43.50. Taiwan Semiconductor Manufacturing Company Limited’s Net Margin is presently recorded at +32.27.

Return on Total Capital for TSM is now 20.32, given the latest momentum, and Return on Invested Capital for the company is 20.34. Return on Equity for this stock inclined to 20.94, with Return on Assets sitting at 15.86. When it comes to the capital structure of this company, Taiwan Semiconductor Manufacturing Company Limited [TSM] has a Total Debt to Total Equity ratio set at 11.89. Additionally, TSM Total Debt to Total Capital is recorded at 10.62, with Total Debt to Total Assets ending up at 8.51. Long-Term Debt to Equity for the company is recorded at 2.48, with the Long-Term Debt to Total Capital now at 2.21.

Reflecting on the efficiency of the workforce at the company, Taiwan Semiconductor Manufacturing Company Limited [TSM] managed to generate an average of $6,730,680 per employee. Receivables Turnover for the company is 7.95 with a Total Asset Turnover recorded at a value of 0.49.Taiwan Semiconductor Manufacturing Company Limited’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.30 and a Current Ratio set at 1.40.

Earnings analysis for Taiwan Semiconductor Manufacturing Company Limited [TSM]

With the latest financial reports released by the company, Taiwan Semiconductor Manufacturing Company Limited posted 0.62/share EPS, while the average EPS was predicted by analysts to be reported at 0.63/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -1.60%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for TSM. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Taiwan Semiconductor Manufacturing Company Limited go to 19.70%.

Insider trade positions for Taiwan Semiconductor Manufacturing Company Limited [TSM]

Positions in Taiwan Semiconductor Manufacturing Company Limited stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 479 institutional holders increased their position in Taiwan Semiconductor Manufacturing Company Limited [NYSE:TSM] by around 63,168,704 shares. Additionally, 420 investors decreased positions by around 73,707,222 shares, while 130 investors held positions by with 823,688,509 shares. The mentioned changes placed institutional holdings at 960,564,435 shares, according to the latest SEC report filing. TSM stock had 137 new institutional investments in for a total of 6,972,645 shares, while 72 institutional investors sold positions of 5,584,883 shares during the same period.

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