Diameter Capital Partners LP Reduces Stock Position in TransAlta Co. (NYSE:TAC)

Diameter Capital Partners LP lessened its holdings in shares of TransAlta Co. (NYSE:TAC - Free Report) TSE: TA by 50.0% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 1,250,000 shares of the utilities provider's stock after selling 1,250,000 shares during the quarter. TransAlta comprises 2.6% of Diameter Capital Partners LP's investment portfolio, making the stock its 12th largest position. Diameter Capital Partners LP owned about 0.42% of TransAlta worth $17,679,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also bought and sold shares of the stock. Tobam purchased a new position in TransAlta in the 4th quarter worth $46,000. Ballentine Partners LLC bought a new position in shares of TransAlta during the fourth quarter valued at about $145,000. Orion Portfolio Solutions LLC purchased a new position in shares of TransAlta in the fourth quarter worth about $147,000. Private Advisor Group LLC purchased a new stake in TransAlta during the 4th quarter valued at about $150,000. Finally, Sage Investment Counsel LLC bought a new position in TransAlta during the 4th quarter worth approximately $156,000. Hedge funds and other institutional investors own 59.00% of the company's stock.

TransAlta Trading Up 1.8%

Shares of NYSE TAC traded up $0.16 during midday trading on Monday, hitting $8.82. 198,086 shares of the company traded hands, compared to its average volume of 1,143,614. TransAlta Co. has a 12-month low of $6.78 and a 12-month high of $14.64. The firm has a market cap of $2.61 billion, a P/E ratio of 21.48 and a beta of 0.71. The stock has a 50-day moving average price of $9.06 and a 200 day moving average price of $10.89. The company has a debt-to-equity ratio of 2.94, a quick ratio of 0.67 and a current ratio of 0.74.

TransAlta (NYSE:TAC - Get Free Report) TSE: TA last posted its quarterly earnings data on Wednesday, May 7th. The utilities provider reported $0.07 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.09 by ($0.02). TransAlta had a return on equity of 18.47% and a net margin of 6.38%. The firm had revenue of $526.69 million during the quarter, compared to the consensus estimate of $509.31 million. As a group, analysts expect that TransAlta Co. will post 0.41 earnings per share for the current year.

TransAlta Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 1st. Investors of record on Sunday, June 1st will be issued a $0.0458 dividend. This represents a $0.18 annualized dividend and a yield of 2.08%. This is an increase from TransAlta's previous quarterly dividend of $0.04. The ex-dividend date is Friday, May 30th. TransAlta's dividend payout ratio (DPR) is presently -900.00%.

Analyst Upgrades and Downgrades

TAC has been the subject of several recent research reports. Cibc World Mkts upgraded TransAlta from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, February 18th. CIBC upgraded shares of TransAlta from a "neutral" rating to an "outperformer" rating and lowered their price target for the company from $23.00 to $19.50 in a report on Tuesday, February 18th. Royal Bank of Canada cut their price target on shares of TransAlta from $23.00 to $20.00 and set an "outperform" rating on the stock in a report on Thursday. StockNews.com downgraded shares of TransAlta from a "buy" rating to a "hold" rating in a research note on Friday, February 21st. Finally, Jefferies Financial Group started coverage on TransAlta in a research note on Friday, April 11th. They issued a "hold" rating on the stock. Four investment analysts have rated the stock with a hold rating, one has assigned a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $19.75.

TransAlta Company Profile

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.