The stock of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is now priced at $79.25 and the shares are -1.19 points down or -1.48% lower compared to its previous closing price of $80.44. The stock had 9.653 million contracts set over the past session. TSM shares’ daily volume is compared to its average trading volume at 10.607 million shares. However, it has a float of 4860 million and although its performance was 0.44% over the week, it’s one to watch. Analysts have given the TSM stock a yearly average price target of $70 per share. It means the stock’s downside potential is -11.67% with the TSM share price recently placing at $78.69 to $79.76. However, some brokerage firms have priced the stock below the average, including one that has called $18.2.
The shorts are running away from the Taiwan Semiconductor Manufacturing Company Limited stock, with the latest data on short interest released on July 31, 2020, showing that short interest numbers in the TSM shares have declined. Short interest in the stock represents just 0.41% of its float, but the volume has dropped by 0.
In the last trading session, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) raised by $0.35 over the week and gained $0.3 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $84. The stock recorded its established 52-week high on 08/05/20.
Since 09/03/19, the stock has traded to a low of $41.58 at 90.62%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge. The stock has a beta allocation of 0.95. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.
Looking at current readings, Taiwan Semiconductor Manufacturing Company Limited’s two-week RSI is 56.91. This suggests that the stock is neutral at the moment and that TSM shares’ price movement remains stable. The stochastic readings are equally revealing at 65.03% meaning the TSM share price is currently in neutral territory.
The technical chart shows that the TSM stock will likely settle at between $79.78 and $80.3 per share. However, if the stock dips below $78.71, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $78.16.
Currently, the stock is trading in the green of MACD, with a reading of 0.69. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at Maxim Group assigned TSM a rating of Buy in their intiating review released on August 28. Credit Suisse analysts upgraded their recommendation of the stock from Neutral to Outperform in a flash note released to investors on July 27. Macquarie seeing the improvements upgraded the stock from Neutral to Outperform on July 24.
The average rating for the TSM equity is 2.4 and is currently gathering a bullish momentum. Of 5 analysts tracking Taiwan Semiconductor Manufacturing Company Limited polled by Reuters, 1 rated TSM as a hold. The remaining 4 analysts were split evenly. However, the split wasn’t equal as a majority (3) rated it as a buy or strong buy. 1 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the TSM stock price is 26.29X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands at 26 below the group’s average of 29.2. Taiwan Semiconductor Manufacturing Company Limited has its P/E ratio at 7, which means that the stock is currently trading at a premium relative to the 6 industry average.
Zacks Consensus Estimate forecasts that the current-quarter revenues for Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) will decrease by about -96.27%, which will see them reach $11600 million. The company’s full-year revenues are, however, expected to increase by about 27.52%, up from $34600 million to $44200 million. TSM’s expected adjusted earnings should surge almost 24.19% to end up at $0.77 per share, while for the fiscal year, analysts project the company’s earnings to grow by about 33.95% to record $2.88/share.