Mackenzie Financial Corp Sells 542,393 Shares of TransAlta Corporation $TAC

Key Points

• Mackenzie Financial Corp reduced its stake in TransAlta by 10.8%, selling 542,393 shares and holding 4,462,328 shares (about 1.5%) valued at roughly $60.94 million after the sale.
• TransAlta missed quarterly expectations, reporting EPS of ($0.04) versus a $0.05 estimate and revenue of $436.1M versus $493.39M; the company shows a negative net margin and negative PE, though analysts' consensus is a Moderate Buy with a $20 price target.
• The company announced a quarterly dividend of $0.07 (annualized $0.28) with an ex-dividend date of June 1, implying about a 2.2% yield.

Mackenzie Financial Corp lessened its holdings in TransAlta Corporation (NYSE:TAC - Free Report) TSE: TA by 10.8% during the 3rd quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 4,462,328 shares of the utilities provider's stock after selling 542,393 shares during the period. Mackenzie Financial Corp owned about 1.50% of TransAlta worth $60,940,000 at the end of the most recent reporting period.

Several other large investors also recently added to or reduced their stakes in TAC. Rubric Capital Management LP boosted its stake in shares of TransAlta by 32.9% during the 2nd quarter. Rubric Capital Management LP now owns 15,948,451 shares of the utilities provider's stock worth $172,084,000 after acquiring an additional 3,948,451 shares during the last quarter. Vanguard Group Inc. lifted its position in TransAlta by 2.3% during the third quarter. Vanguard Group Inc. now owns 10,949,384 shares of the utilities provider's stock valued at $149,569,000 after purchasing an additional 248,027 shares in the last quarter. Bank of Montreal Can increased its position in TransAlta by 15.1% in the third quarter. Bank of Montreal Can now owns 10,425,309 shares of the utilities provider's stock worth $142,373,000 after buying an additional 1,369,830 shares in the last quarter. Oaktree Capital Management LP raised its stake in shares of TransAlta by 9.0% in the second quarter. Oaktree Capital Management LP now owns 6,085,253 shares of the utilities provider's stock worth $65,513,000 after buying an additional 500,000 shares during the period. Finally, AustralianSuper Pty Ltd bought a new position in shares of TransAlta during the 3rd quarter valued at approximately $36,395,000. 59.00% of the stock is currently owned by institutional investors.

TransAlta Stock Down 0.8%

TAC opened at $12.76 on Friday. The firm has a 50-day simple moving average of $12.97 and a two-hundred day simple moving average of $13.82. TransAlta Corporation has a 52 week low of $7.82 and a 52 week high of $17.88. The company has a market capitalization of $3.79 billion, a PE ratio of -27.15 and a beta of 0.77. The company has a quick ratio of 0.67, a current ratio of 0.73 and a debt-to-equity ratio of 6.54.

TransAlta (NYSE:TAC - Get Free Report) TSE: TA last issued its earnings results on Friday, February 27th. The utilities provider reported ($0.04) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.05 by ($0.09). The firm had revenue of $436.10 million during the quarter, compared to the consensus estimate of $493.39 million. TransAlta had a positive return on equity of 10.00% and a negative net margin of 7.51%. Analysts forecast that TransAlta Corporation will post 0.41 earnings per share for the current fiscal year.

TransAlta Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Monday, June 1st will be paid a $0.07 dividend. This represents a $0.28 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date of this dividend is Monday, June 1st. This is a positive change from TransAlta's previous quarterly dividend of $0.07. TransAlta's dividend payout ratio is presently -40.43%.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on the stock. National Bank Financial cut shares of TransAlta from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, December 3rd. Weiss Ratings reissued a "sell (d+)" rating on shares of TransAlta in a research note on Wednesday, January 21st. Zacks Research upgraded shares of TransAlta from a "strong sell" rating to a "hold" rating in a research report on Friday, December 5th. Finally, TD Securities restated a "buy" rating on shares of TransAlta in a research note on Wednesday, December 10th. Five research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $20.00.

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.

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