Taiwan Semiconductor Manufacturing ADR (NYSE: TSM)’s stock price has gone decline by -0.47 in comparison to its previous close of 136.69, however, the company has experienced a -2.44% decrease in its stock price over the last five trading days. The Motley Fool reported 2024-03-29 that Top tech CEOs and investors are betting that generative AI will be transformative. Micron is poised to benefit from growing demand for memory chips.
Is It Worth Investing in Taiwan Semiconductor Manufacturing ADR (NYSE: TSM) Right Now?
Taiwan Semiconductor Manufacturing ADR (NYSE: TSM) has a price-to-earnings ratio of 26.25x that is above its average ratio. Additionally, the 36-month beta value for TSM is 1.15. There are mixed opinions on the stock, with 7 analysts rating it as a “buy,” 5 rating it as “overweight,” 1 rating it as “hold,” and 0 rating it as “sell.”
The public float for TSM is 5.19B and currently, short sellers hold a 0.46% ratio of that float. The average trading volume of TSM on April 01, 2024 was 15.43M shares.
TSM’s Market Performance
TSM stock saw an increase of -2.44% in the past week, with a monthly gain of 6.81% and a quarterly increase of 30.00%. The volatility ratio for the week is 1.81%, and the volatility levels for the last 30 days are 3.10% for Taiwan Semiconductor Manufacturing ADR (TSM). The simple moving average for the past 20 days is -2.09% for TSM’s stock, with a 30.49% simple moving average for the past 200 days.
Analysts’ Opinion of TSM
Many brokerage firms have already submitted their reports for TSM stocks, with Needham repeating the rating for TSM by listing it as a “Buy.” The predicted price for TSM in the upcoming period, according to Needham is $133 based on the research report published on January 19, 2024 of the current year 2024.
TD Cowen, on the other hand, stated in their research note that they expect to see TSM reach a price target of $95, previously predicting the price at $85. The rating they have provided for TSM stocks is “Market Perform” according to the report published on January 12th, 2024.
Barclays gave a rating of “Overweight” to TSM, setting the target price at $105 in the report published on October 23rd of the previous year.
TSM Trading at 5.78% from the 50-Day Moving Average
After a stumble in the market that brought TSM to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -14.11% of loss for the given period.
Volatility was left at 3.10%, however, over the last 30 days, the volatility rate increased by 1.81%, as shares surge +5.74% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +32.15% upper at present.
During the last 5 trading sessions, TSM fell by -2.44%, which changed the moving average for the period of 200-days by +27.08% in comparison to the 20-day moving average, which settled at $139.32. In addition, Taiwan Semiconductor Manufacturing ADR saw 30.82% in overturn over a single year, with a tendency to cut further gains.
Stock Fundamentals for TSM
Current profitability levels for the company are sitting at:
- 0.43 for the present operating margin
- 0.53 for the gross margin
The net margin for Taiwan Semiconductor Manufacturing ADR stands at 0.39. The total capital return value is set at 0.2. Equity return is now at value 25.78, with 15.73 for asset returns.
Based on Taiwan Semiconductor Manufacturing ADR (TSM), the company’s capital structure generated 0.21 points at debt to capital in total, while cash flow to debt ratio is standing at 1.33. The debt to equity ratio resting at 0.27. The interest coverage ratio of the stock is 50.26.
Currently, EBITDA for the company is 1.45 trillion with net debt to EBITDA at -0.35. When we switch over and look at the enterprise to sales, we see a ratio of 9.12. The receivables turnover for the company is 10.7for trailing twelve months and the total asset turnover is 0.39. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.40.
Conclusion
In conclusion, Taiwan Semiconductor Manufacturing ADR (TSM) has seen better performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
