BlackRock Inc. Purchases Shares of 206,397 TransAlta Corporation $TAC

Key Points

• BlackRock acquired 206,397 TransAlta shares worth approximately $2.85 million during the second quarter, giving it a 0.07% stake. Institutional investors collectively own 59% of the company.
• TransAlta’s latest quarterly earnings came in at $0.13 per share, beating estimates of $0.11, although revenue of $342.85 million missed expectations of $379.54 million.
• The company declared a quarterly dividend of $0.07 per share, equivalent to an annualized $0.28 payout and a 2.3% yield. Analysts maintain a “Moderate Buy” consensus with a $24.50 price target.

BlackRock Inc. purchased a new position in TransAlta Corporation (NYSE:TAC - Free Report) TSE: TA in the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 206,397 shares of the utilities provider's stock, valued at approximately $2,854,000. BlackRock Inc. owned 0.07% of TransAlta at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in TransAlta by 27.8% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 208,969 shares of the utilities provider's stock worth $1,954,000 after buying an additional 45,478 shares during the period. Geode Capital Management LLC raised its holdings in TransAlta by 3.5% during the second quarter. Geode Capital Management LLC now owns 152,816 shares of the utilities provider's stock valued at $1,660,000 after acquiring an additional 5,214 shares during the period. Invesco Ltd. lifted its position in shares of TransAlta by 18.9% in the second quarter. Invesco Ltd. now owns 1,075,171 shares of the utilities provider's stock valued at $11,601,000 after acquiring an additional 170,829 shares in the last quarter. Westerly Capital Management LLC purchased a new position in shares of TransAlta in the second quarter valued at about $8,281,000. Finally, Balyasny Asset Management L.P. boosted its stake in shares of TransAlta by 418.8% in the second quarter. Balyasny Asset Management L.P. now owns 295,347 shares of the utilities provider's stock worth $3,186,000 after acquiring an additional 238,422 shares during the period. 59.00% of the stock is owned by hedge funds and other institutional investors.

TransAlta Stock Up 1.4%

Shares of TAC opened at $11.98 on Friday. The company has a debt-to-equity ratio of 3.64, a current ratio of 0.84 and a quick ratio of 0.77. The stock has a market capitalization of $3.79 billion, a price-to-earnings ratio of -66.55 and a beta of 0.70. TransAlta Corporation has a 1 year low of $11.38 and a 1 year high of $17.88. The business's 50 day simple moving average is $12.98 and its 200-day simple moving average is $13.08.

TransAlta (NYSE:TAC - Get Free Report) TSE: TA last posted its earnings results on Friday, July 31st. The utilities provider reported $0.13 earnings per share for the quarter, beating analysts' consensus estimates of $0.11 by $0.02. TransAlta had a negative net margin of 2.76% and a positive return on equity of 8.85%. The firm had revenue of $342.85 million during the quarter, compared to analyst estimates of $379.54 million. As a group, equities analysts expect that TransAlta Corporation will post 0.21 earnings per share for the current fiscal year.

TransAlta Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 1st will be paid a $0.07 dividend. This represents a $0.28 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date of this dividend is Tuesday, September 1st. TransAlta's dividend payout ratio (DPR) is presently -111.11%.

Analysts Set New Price Targets

A number of research analysts recently commented on the company. Canadian Imperial Bank of Commerce reissued an "outperform" rating on shares of TransAlta in a report on Friday, July 17th. BMO Capital Markets reaffirmed an "outperform" rating on shares of TransAlta in a report on Monday, August 3rd. Zacks Research upgraded shares of TransAlta from a "strong sell" rating to a "hold" rating in a research report on Monday, August 17th. Scotiabank raised shares of TransAlta to a "strong-buy" rating in a report on Wednesday, June 10th. Finally, Weiss Ratings lowered shares of TransAlta from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Tuesday, August 18th. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, TransAlta presently has an average rating of "Moderate Buy" and a consensus price target of $24.50.

TransAlta Company Profile

TransAlta Corporation, originally founded in 1909 as Calgary Power Company Ltd., is a publicly traded energy company specializing in the development, ownership and operation of power generation and transmission assets. Headquartered in Calgary, Alberta, TransAlta has grown from its early hydroelectric roots into a diversified energy provider with a multi-fuel generating fleet.

The company's core business activities encompass power generation, asset management and energy trading services.

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