Invesco Ltd. Acquires 832,000 Shares of TransAlta Corporation $TAC

Key Points

• Invesco Ltd. significantly increased its stake in TransAlta Corporation by 1,150.1% in the first quarter, accumulating 904,342 shares worth approximately $8.5 million.
• TransAlta's stock has received several upgrades from analysts, with a consensus rating of "Buy" and a target price increase to around $19.88.
• The company has announced an increase in its quarterly dividend to $0.065 per share, reflecting a 2.1% yield and a boost from the previous amount of $0.05.

Invesco Ltd. boosted its holdings in TransAlta Corporation (NYSE:TAC - Free Report) TSE: TA by 1,150.1% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 904,342 shares of the utilities provider's stock after purchasing an additional 832,000 shares during the period. Invesco Ltd. owned about 0.31% of TransAlta worth $8,456,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also bought and sold shares of the company. NBC Securities Inc. boosted its position in TransAlta by 145,600.0% in the first quarter. NBC Securities Inc. now owns 2,914 shares of the utilities provider's stock worth $27,000 after purchasing an additional 2,912 shares during the last quarter. Tobam boosted its position in TransAlta by 239.2% in the first quarter. Tobam now owns 10,943 shares of the utilities provider's stock worth $102,000 after purchasing an additional 7,717 shares during the last quarter. Private Advisor Group LLC boosted its position in TransAlta by 64.9% in the first quarter. Private Advisor Group LLC now owns 17,525 shares of the utilities provider's stock worth $164,000 after purchasing an additional 6,900 shares during the last quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main purchased a new position in TransAlta in the fourth quarter worth $167,000. Finally, Two Sigma Investments LP purchased a new position in TransAlta in the fourth quarter worth $195,000. Hedge funds and other institutional investors own 59.00% of the company's stock.

TransAlta Stock Performance

Shares of NYSE:TAC traded down $0.32 during midday trading on Friday, reaching $12.30. 2,151,968 shares of the company traded hands, compared to its average volume of 1,214,774. The company has a quick ratio of 0.72, a current ratio of 0.79 and a debt-to-equity ratio of 4.98. TransAlta Corporation has a 12 month low of $7.82 and a 12 month high of $14.64. The firm has a market capitalization of $3.64 billion, a price-to-earnings ratio of -29.27 and a beta of 0.78. The firm's fifty day moving average price is $11.80 and its two-hundred day moving average price is $10.34.

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

TransAlta Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Monday, September 1st will be paid a dividend of $0.065 per share. This represents a $0.26 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date is Friday, August 29th. This is a positive change from TransAlta's previous quarterly dividend of $0.05. TransAlta's dividend payout ratio is presently -45.24%.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on TAC shares. Scotiabank upgraded TransAlta from a "sector perform" rating to a "sector outperform" rating and boosted their target price for the company from $16.00 to $20.00 in a research note on Friday, July 18th. Wall Street Zen upgraded TransAlta from a "sell" rating to a "hold" rating in a research note on Saturday, June 14th. Jefferies Financial Group upgraded TransAlta from a "hold" rating to a "buy" rating in a research note on Thursday, June 12th. TD Securities restated a "buy" rating and issued a $20.00 target price (up from $19.00) on shares of TransAlta in a research note on Tuesday, August 5th. Finally, National Bankshares restated an "outperform" rating on shares of TransAlta in a research note on Tuesday, August 5th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "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.