Canadian Imperial Bank of Commerce Issues Pessimistic Forecast for TransAlta (TSE:TA) Stock Price

Key Points

• Canadian Imperial Bank of Commerce lowered TransAlta’s price target from C$26.00 to C$24.50, although the revised target still implies approximately 45.9% upside from the previous close.
• Analyst sentiment remains positive overall, with TransAlta carrying a consensus “Buy” rating and an average price target of C$24.85; other targets range from C$19.00 to C$28.00.
• TransAlta shares recently traded at C$16.79, while the company reported C$0.18 in quarterly EPS on C$507 million in revenue. Insider Michael Politeski also purchased 5,000 shares for approximately C$80,100.

TransAlta (TSE:TA - Get Free Report) NYSE: TAC had its price objective decreased by stock analysts at Canadian Imperial Bank of Commerce from C$26.00 to C$24.50 in a report issued on Tuesday, BayStreet reports. Canadian Imperial Bank of Commerce's target price suggests a potential upside of 45.92% from the company's previous close.

A number of other equities analysts have also recently issued reports on the company. National Bank Financial lifted their target price on TransAlta from C$22.00 to C$24.00 and gave the stock an "outperform" rating in a report on Monday, June 1st. Royal Bank Of Canada set a C$24.00 target price on TransAlta and gave the company an "outperform" rating in a report on Wednesday, June 10th. TD set a C$26.00 price target on TransAlta and gave the company a "buy" rating in a research report on Wednesday, June 10th. Desjardins lifted their price target on TransAlta from C$18.50 to C$19.00 and gave the stock a "hold" rating in a research note on Friday, July 3rd. Finally, ATB Cormark Capital Markets set a C$28.00 price objective on TransAlta and gave the stock an "outperform" rating in a report on Wednesday, June 10th. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Buy" and a consensus target price of C$24.85.

TransAlta Stock Performance

Shares of TA traded down C$0.50 during trading hours on Tuesday, reaching C$16.79. 434,151 shares of the company's stock traded hands, compared to its average volume of 1,666,436. TransAlta has a twelve month low of C$15.62 and a twelve month high of C$25.03. The business's fifty day simple moving average is C$17.57 and its two-hundred day simple moving average is C$18.05. The company has a debt-to-equity ratio of 238.01, a current ratio of 0.84 and a quick ratio of 0.61. The firm has a market capitalization of C$5.31 billion, a price-to-earnings ratio of -54.16, a P/E/G ratio of -0.07 and a beta of 0.69.

TransAlta (TSE:TA - Get Free Report) NYSE: TAC last released its earnings results on Friday, July 31st. The company reported C$0.18 earnings per share for the quarter. TransAlta had a negative return on equity of 1.50% and a negative net margin of 1.02%.The firm had revenue of C$507.00 million during the quarter.

Insiders Place Their Bets

In other news, insider Michael Politeski acquired 5,000 shares of TransAlta stock in a transaction dated Tuesday, September 15th. The stock was acquired at an average cost of C$16.02 per share, for a total transaction of C$80,100.00. Following the completion of the purchase, the insider owned 90,000 shares of the company's stock, valued at C$1,441,800. This represents a 5.88% increase in their ownership of the stock. Company insiders own 0.21% of the company's stock.

TransAlta Company Profile

TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States and Australia with a focus on long-term shareholder value. TransAlta provides municipalities, medium and large industries, businesses and utility customers with affordable, energy efficient and reliable power. Today, TransAlta is one of Canada's largest producers of wind power and Alberta's largest producer of thermal generation and hydro-electric power. For over 114 years, TransAlta has been a responsible operator and a proud member of the communities where we operate and where our employees work and live.

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