Bank of Nova Scotia Has $13.65 Million Stock Holdings in TransAlta Corporation (NYSE:TAC)

Key Points

• The Bank of Nova Scotia has reduced its holdings in TransAlta Corporation by 31.9%, owning 1,462,506 shares worth approximately $13.65 million after selling 686,167 shares in the first quarter.
• TransAlta announced a quarterly dividend increase to $0.065 per share, payable on October 1st, reflecting a positive change from the previous dividend of $0.05.
• Analysts have shown a positive outlook on TransAlta's stock, with several upgrades and a consensus price target of $19.83, indicating a "Moderate Buy" rating.

Bank of Nova Scotia lowered its stake in shares of TransAlta Corporation (NYSE:TAC - Free Report) TSE: TA by 31.9% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 1,462,506 shares of the utilities provider's stock after selling 686,167 shares during the quarter. Bank of Nova Scotia owned about 0.49% of TransAlta worth $13,651,000 at the end of the most recent quarter.

A number of other institutional investors also recently added to or reduced their stakes in TAC. NBC Securities Inc. boosted its stake in shares of TransAlta by 145,600.0% in the first quarter. NBC Securities Inc. now owns 2,914 shares of the utilities provider's stock valued at $27,000 after purchasing an additional 2,912 shares during the period. Vident Advisory LLC boosted its holdings in shares of TransAlta by 5.3% in the 4th quarter. Vident Advisory LLC now owns 69,004 shares of the utilities provider's stock worth $976,000 after acquiring an additional 3,499 shares in the last quarter. Geode Capital Management LLC increased its position in shares of TransAlta by 3.4% in the 4th quarter. Geode Capital Management LLC now owns 126,761 shares of the utilities provider's stock valued at $1,811,000 after buying an additional 4,140 shares in the last quarter. Barclays PLC boosted its stake in shares of TransAlta by 3.2% during the 4th quarter. Barclays PLC now owns 147,703 shares of the utilities provider's stock worth $2,090,000 after buying an additional 4,641 shares during the last quarter. Finally, CANADA LIFE ASSURANCE Co lifted its position in TransAlta by 7.5% during the fourth quarter. CANADA LIFE ASSURANCE Co now owns 73,942 shares of the utilities provider's stock worth $1,041,000 after acquiring an additional 5,168 shares during the last quarter. Hedge funds and other institutional investors own 59.00% of the company's stock.

TransAlta Stock Performance

Shares of NYSE:TAC traded down $0.16 during midday trading on Thursday, hitting $12.02. The stock had a trading volume of 780,101 shares, compared to its average volume of 1,585,516. TransAlta Corporation has a 1 year low of $7.82 and a 1 year high of $14.64. The company has a current ratio of 0.79, a quick ratio of 0.78 and a debt-to-equity ratio of 4.98. The stock has a 50 day moving average price of $11.25 and a two-hundred day moving average price of $10.29. The company has a market capitalization of $3.56 billion, a PE ratio of -28.61 and a beta of 0.75.

TransAlta (NYSE:TAC - Get Free Report) TSE: TA last posted its quarterly earnings results on Friday, August 1st. The utilities provider reported $0.13 EPS for the quarter, beating the consensus estimate of $0.07 by $0.06. The firm had revenue of $451.20 million for the quarter, compared to analyst estimates of $473.94 million. TransAlta had a negative net margin of 6.79% and a negative return on equity of 2.06%. As a group, equities analysts predict that TransAlta Corporation will post 0.41 earnings per share for the current fiscal year.

TransAlta Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Monday, September 1st will be issued a $0.065 dividend. The ex-dividend date is Friday, August 29th. This is a positive change from TransAlta's previous quarterly dividend of $0.05. This represents a $0.26 annualized dividend and a dividend yield of 2.2%. TransAlta's dividend payout ratio is -45.24%.

Wall Street Analysts Forecast Growth

A number of analysts have commented on TAC shares. TD Securities reaffirmed a "buy" rating and set a $20.00 price target (up previously from $19.00) on shares of TransAlta in a research report on Tuesday. Jefferies Financial Group raised shares of TransAlta from a "hold" rating to a "buy" rating in a research note on Thursday, June 12th. Wall Street Zen raised shares of TransAlta from a "sell" rating to a "hold" rating in a research note on Saturday, June 14th. Scotiabank raised shares of TransAlta from a "sector perform" rating to a "sector outperform" rating and lifted their price target for the stock from $16.00 to $20.00 in a research note on Friday, July 18th. Finally, National Bankshares reiterated an "outperform" rating on shares of TransAlta in a research note on Tuesday. Two analysts have rated the stock with a hold rating, five have given a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, TransAlta currently has a consensus rating of "Moderate Buy" and a consensus price target of $19.88.

TransAlta 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.