Cibc World Market Inc. Makes New $31.80 Million Investment in TransAlta Corporation $TAC

Key Points

• CIBC World Markets purchased 2.3 million TransAlta shares worth approximately $31.8 million, giving it a 0.73% stake. Institutional investors and hedge funds collectively own 59% of the company.
• TransAlta reported quarterly EPS of $0.13, beating estimates of $0.11, but revenue of $342.85 million fell short of the $379.54 million consensus estimate. Shares opened at $12.22, near the lower end of their 12-month range.
• The company declared a quarterly dividend of $0.07 per share, representing an annualized payout of $0.28 and a 2.3% yield. Analysts maintain a generally positive view, with a consensus “Moderate Buy” rating and a $24.50 price target.

Cibc World Market Inc. purchased a new stake in TransAlta Corporation (NYSE:TAC - Free Report) TSE: TA during the second quarter, according to the company in its most recent disclosure with the SEC. The firm purchased 2,300,636 shares of the utilities provider's stock, valued at approximately $31,799,000. Cibc World Market Inc. owned approximately 0.73% of TransAlta at the end of the most recent reporting period.

Other hedge funds also recently bought and sold shares of the company. EverSource Wealth Advisors LLC grew its position in shares of TransAlta by 37.1% during the fourth quarter. EverSource Wealth Advisors LLC now owns 3,000 shares of the utilities provider's stock worth $38,000 after buying an additional 812 shares in the last quarter. Sage Rhino Capital LLC increased its stake in shares of TransAlta by 8.7% during the first quarter. Sage Rhino Capital LLC now owns 11,078 shares of the utilities provider's stock worth $145,000 after buying an additional 882 shares during the period. Pictet Asset Management Holding SA raised its holdings in TransAlta by 1.9% in the fourth quarter. Pictet Asset Management Holding SA now owns 48,926 shares of the utilities provider's stock valued at $620,000 after acquiring an additional 893 shares in the last quarter. Creative Planning raised its holdings in TransAlta by 2.0% in the third quarter. Creative Planning now owns 52,339 shares of the utilities provider's stock valued at $715,000 after acquiring an additional 1,003 shares in the last quarter. Finally, Savant Capital LLC lifted its stake in TransAlta by 10.4% in the fourth quarter. Savant Capital LLC now owns 16,568 shares of the utilities provider's stock worth $209,000 after acquiring an additional 1,566 shares during the last quarter. Institutional investors and hedge funds own 59.00% of the company's stock.

TransAlta Stock Up 0.1%

Shares of NYSE:TAC opened at $12.22 on Monday. The firm has a 50 day simple moving average of $13.30 and a 200-day simple moving average of $13.15. TransAlta Corporation has a twelve month low of $11.38 and a twelve month high of $17.88. The company has a current ratio of 0.84, a quick ratio of 0.77 and a debt-to-equity ratio of 3.64. The company has a market capitalization of $3.86 billion, a PE ratio of -67.89 and a beta of 0.70.

TransAlta (NYSE:TAC - Get Free Report) TSE: TA last posted its earnings results on Friday, July 31st. The utilities provider reported $0.13 EPS 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 for the quarter, compared to the consensus estimate of $379.54 million. On average, equities analysts predict that TransAlta Corporation will post 0.21 EPS for the current fiscal year.

TransAlta Dividend Announcement

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

Wall Street Analyst Weigh In

Several research analysts have commented on TAC shares. BMO Capital Markets reiterated an "outperform" rating on shares of TransAlta in a report on Monday, August 3rd. TD Cowen began coverage on shares of TransAlta in a report on Wednesday, June 10th. They issued a "buy" rating on the stock. TD Securities reaffirmed a "buy" rating on shares of TransAlta in a research report on Thursday, May 7th. Canadian Imperial Bank of Commerce reiterated an "outperform" rating on shares of TransAlta in a research note on Friday, July 17th. Finally, Scotiabank raised TransAlta to a "strong-buy" rating in a report on Wednesday, June 10th. One 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 issued a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $24.50.

About TransAlta

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.

Want to see what other hedge funds are holding TAC? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for TransAlta Corporation (NYSE:TAC - Free Report) TSE: TA.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source