Atb Cap Markets Decreases Earnings Estimates for TransAlta

Key Points

• Atb Cap Markets has reduced its FY2025 earnings estimate for TransAlta to $0.34 per share, down from the previous estimate of $0.41, while the consensus estimate remains at $0.41 per share.
• TransAlta reported a quarterly earnings per share of $0.13, exceeding analyst expectations of $0.07, though it faced a negative net margin of 6.79%.
• The company recently declared a quarterly dividend of $0.065, up from $0.05, representing an annual yield of 1.6% as part of its ongoing effort to increase shareholder value.

TransAlta Corporation (NYSE:TAC - Free Report) TSE: TA - Atb Cap Markets reduced their FY2025 earnings estimates for shares of TransAlta in a research note issued on Sunday, October 19th. Atb Cap Markets analyst N. Heywood now anticipates that the utilities provider will earn $0.34 per share for the year, down from their prior forecast of $0.41. The consensus estimate for TransAlta's current full-year earnings is $0.41 per share.

TransAlta (NYSE:TAC - Get Free Report) TSE: TA last posted its quarterly earnings data on Friday, August 1st. The utilities provider reported $0.13 EPS for the quarter, beating analysts' consensus estimates of $0.07 by $0.06. TransAlta had a negative net margin of 6.79% and a negative return on equity of 2.06%. The company had revenue of $451.20 million during the quarter, compared to the consensus estimate of $473.94 million.

TAC has been the subject of a number of other research reports. Zacks Research cut TransAlta from a "strong-buy" rating to a "hold" rating in a report on Friday, October 3rd. TD Securities reiterated a "buy" rating and set a $20.00 target price (up previously from $19.00) on shares of TransAlta in a report on Tuesday, August 5th. National Bankshares reiterated an "outperform" rating on shares of TransAlta in a report on Tuesday, August 5th. Weiss Ratings reiterated a "sell (d+)" rating on shares of TransAlta in a report on Wednesday, October 8th. Finally, CIBC reiterated an "outperform" rating on shares of TransAlta in a report on Monday. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $19.88.

TransAlta Stock Down 0.9%

Shares of NYSE:TAC opened at $16.71 on Wednesday. The company has a debt-to-equity ratio of 4.98, a quick ratio of 0.72 and a current ratio of 0.79. TransAlta has a 1 year low of $7.82 and a 1 year high of $17.69. The stock has a market capitalization of $4.96 billion, a P/E ratio of -39.77 and a beta of 0.79. The stock has a 50-day simple moving average of $13.64 and a 200-day simple moving average of $11.43.

Hedge Funds Weigh In On TransAlta

A number of institutional investors and hedge funds have recently bought and sold shares of TAC. Caitong International Asset Management Co. Ltd boosted its holdings in TransAlta by 48,666.7% in the 1st quarter. Caitong International Asset Management Co. Ltd now owns 4,389 shares of the utilities provider's stock worth $41,000 after acquiring an additional 4,380 shares during the period. Entropy Technologies LP acquired a new position in shares of TransAlta in the 1st quarter valued at approximately $119,000. Savant Capital LLC acquired a new position in shares of TransAlta in the 2nd quarter valued at approximately $127,000. Ballentine Partners LLC acquired a new position in shares of TransAlta in the 2nd quarter valued at approximately $134,000. Finally, Fox Run Management L.L.C. acquired a new position in shares of TransAlta in the 2nd quarter valued at approximately $140,000. Hedge funds and other institutional investors own 59.00% of the company's stock.

TransAlta Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, October 1st. Shareholders of record on Monday, September 1st were issued a $0.065 dividend. The ex-dividend date was Friday, August 29th. This represents a $0.26 dividend on an annualized basis and a yield of 1.6%. This is a boost from TransAlta's previous quarterly dividend of $0.05. TransAlta's dividend payout ratio (DPR) is currently -45.24%.

About TransAlta

TransAlta Corporation engages in the development, production, and sale of electric energy. It operates through Hydro, Wind and Solar, Gas, Energy Transition, and Energy Marketing segments. The Hydro segment holds interest of approximately 922 megawatts (MW) of owned hydroelectric generating capacity located in Alberta, British Columbia, and Ontario.

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