UBS Group AG Sells 1,649,337 Shares of TransAlta Corporation $TAC

Key Points

• UBS Group AG sold 1,649,337 shares of TransAlta, trimming its stake by 35% to 3,057,715 shares (about 1.03% of the company), valued at roughly $38.65 million at the end of the quarter.
• Equity analysts hold a consensus rating of Moderate Buy (7 Buys, 1 Hold, 1 Sell) with a consensus price target of $21.33, and several banks have reaffirmed "outperform" views.
• TransAlta reported quarterly EPS of $0.04 (beating the $0.01 estimate) while revenue missed estimates, and announced a quarterly dividend of $0.07 (annualized $0.28, ~2.2% yield).

UBS Group AG lessened its position in shares of TransAlta Corporation (NYSE:TAC - Free Report) TSE: TA by 35.0% in the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 3,057,715 shares of the utilities provider's stock after selling 1,649,337 shares during the period. UBS Group AG owned 1.03% of TransAlta worth $38,650,000 at the end of the most recent reporting period.

A number of other hedge funds have also bought and sold shares of the company. Rubric Capital Management LP raised its stake in TransAlta by 32.9% during the second quarter. Rubric Capital Management LP now owns 15,948,451 shares of the utilities provider's stock worth $172,084,000 after buying an additional 3,948,451 shares during the last quarter. Vanguard Group Inc. raised its stake in TransAlta by 1.6% during the fourth quarter. Vanguard Group Inc. now owns 11,123,833 shares of the utilities provider's stock worth $140,694,000 after buying an additional 174,449 shares during the last quarter. Bank of Montreal Can raised its stake in TransAlta by 15.1% during 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 during the last quarter. Oaktree Capital Management LP raised its stake in TransAlta by 5.4% during the third quarter. Oaktree Capital Management LP now owns 6,415,253 shares of the utilities provider's stock worth $87,648,000 after buying an additional 330,000 shares during the last quarter. Finally, Aventail Capital Group LP bought a new stake in TransAlta in the third quarter valued at $38,633,000. Institutional investors own 59.00% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the stock. BMO Capital Markets reaffirmed an "outperform" rating on shares of TransAlta in a research note on Thursday. National Bank Financial raised shares of TransAlta from a "sector perform" rating to an "outperform" rating in a research note on Tuesday, March 24th. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of TransAlta in a research note on Monday, April 20th. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $24.00 price target on shares of TransAlta in a research note on Tuesday, March 24th. Finally, Canadian Imperial Bank of Commerce reaffirmed an "outperform" rating on shares of TransAlta in a research note on Thursday, April 16th. Seven equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $21.33.

TransAlta Trading Down 0.1%

NYSE:TAC opened at $12.78 on Friday. The company has a debt-to-equity ratio of 6.54, a current ratio of 0.73 and a quick ratio of 0.67. The firm has a 50-day moving average of $12.93 and a 200-day moving average of $13.59. The company has a market cap of $3.81 billion, a PE ratio of -23.67 and a beta of 0.66. TransAlta Corporation has a one year low of $8.34 and a one year high of $17.88.

TransAlta (NYSE:TAC - Get Free Report) TSE: TA last posted its earnings results on Wednesday, May 6th. The utilities provider reported $0.04 EPS for the quarter, topping the consensus estimate of $0.01 by $0.03. The company had revenue of $406.19 million during the quarter, compared to the consensus estimate of $436.36 million. TransAlta had a negative net margin of 9.46% and a positive return on equity of 9.15%. As a group, equities research analysts expect that TransAlta Corporation will post 0.22 EPS for the current fiscal year.

TransAlta Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Monday, June 1st will be given a dividend of $0.07 per share. The ex-dividend date of this dividend is Monday, June 1st. This is a boost from TransAlta's previous quarterly dividend of $0.07. This represents a $0.28 annualized dividend and a dividend yield of 2.2%. TransAlta's payout ratio is presently -40.43%.

TransAlta 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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