TransAlta Corporation $TAC Shares Bought by Value Aligned Research Advisors LLC

Key Points

• Value Aligned Research Advisors raised its stake in TransAlta by 17.6% to 745,013 shares (about 0.25% ownership) worth $10.17 million, and institutional investors now own roughly 59% of the stock.
• TransAlta missed the quarter with EPS of ($0.04) versus estimates of $0.05 and revenue of $436.1M versus $493.4M, reflecting a negative net margin (-7.51%) and a negative PE (-26.52), signaling profitability and valuation concerns.
• The company declared a quarterly dividend of $0.07 (annualized $0.28, ~2.2% yield), while analysts hold an average rating of "Moderate Buy" with a consensus price target of $20 (5 Buy / 2 Hold / 1 Sell).

Value Aligned Research Advisors LLC raised its holdings in TransAlta Corporation (NYSE:TAC - Free Report) TSE: TA by 17.6% during the third quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 745,013 shares of the utilities provider's stock after purchasing an additional 111,426 shares during the quarter. Value Aligned Research Advisors LLC owned 0.25% of TransAlta worth $10,174,000 as of its most recent SEC filing.

Other hedge funds have also modified their holdings of the company. Sage Rhino Capital LLC purchased a new stake in TransAlta in the 3rd quarter valued at about $139,000. Savant Capital LLC acquired a new stake in shares of TransAlta during the second quarter valued at about $127,000. Swiss Life Asset Management Ltd acquired a new stake in shares of TransAlta during the third quarter valued at about $176,000. Orion Porfolio Solutions LLC purchased a new stake in shares of TransAlta in the 2nd quarter valued at approximately $159,000. Finally, Quadrature Capital Ltd purchased a new stake in shares of TransAlta in the 2nd quarter valued at approximately $173,000. 59.00% of the stock is currently owned by hedge funds and other institutional investors.

TransAlta Stock Performance

Shares of TAC stock opened at $12.47 on Thursday. The firm has a 50 day moving average of $12.95 and a two-hundred day moving average of $13.83. The stock has a market capitalization of $3.70 billion, a PE ratio of -26.52 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 Corporation has a 52 week low of $7.82 and a 52 week high of $17.88.

TransAlta (NYSE:TAC - Get Free Report) TSE: TA last posted its quarterly earnings data on Friday, February 27th. The utilities provider reported ($0.04) earnings per share for the quarter, missing analysts' consensus estimates of $0.05 by ($0.09). The company had revenue of $436.10 million for the quarter, compared to analysts' expectations of $493.39 million. TransAlta had a positive return on equity of 10.00% and a negative net margin of 7.51%. On average, research analysts predict that TransAlta Corporation will post 0.41 EPS for the current fiscal year.

TransAlta Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Monday, June 1st will be issued a dividend of $0.07 per share. This is a positive change from TransAlta's previous quarterly dividend of $0.07. The ex-dividend date is Monday, June 1st. This represents a $0.28 annualized dividend and a yield of 2.2%. TransAlta's dividend payout ratio (DPR) is currently -40.43%.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on TAC. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of TransAlta in a research report on Wednesday, January 21st. Zacks Research raised TransAlta from a "strong sell" rating to a "hold" rating in a research report on Friday, December 5th. National Bank Financial cut TransAlta from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, December 3rd. Finally, TD Securities reaffirmed a "buy" rating on shares of TransAlta in a research note on Wednesday, December 10th. Five analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average 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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