Value Aligned Research Advisors LLC Sells 456,366 Shares of TransAlta Corporation $TAC

Key Points

• Value Aligned Research Advisors LLC reduced its TransAlta position by 17.6%, selling 456,366 shares in the second quarter but retaining 2.14 million shares valued at approximately $29.6 million. Institutional investors collectively own 59% of the company.
• TransAlta reported quarterly earnings of $0.13 per share, exceeding estimates of $0.11, while revenue of $342.85 million fell short of the $379.54 million consensus estimate.
• The company declared a quarterly dividend of $0.07 per share, or $0.28 annualized, representing a 2.3% yield. Analysts maintain a consensus “Moderate Buy” rating with a $24.50 target price, despite the stock recently trading near $11.98.

Value Aligned Research Advisors LLC lowered its position in TransAlta Corporation (NYSE:TAC - Free Report) TSE: TA by 17.6% during the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 2,139,907 shares of the utilities provider's stock after selling 456,366 shares during the period. Value Aligned Research Advisors LLC owned 0.68% of TransAlta worth $29,595,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently modified their holdings of TAC. Tacita Capital Inc purchased a new stake in shares of TransAlta during the 2nd quarter worth approximately $3,073,000. Dimensional Fund Advisors LP lifted its stake in TransAlta by 6.0% in the first quarter. Dimensional Fund Advisors LP now owns 1,629,540 shares of the utilities provider's stock valued at $21,343,000 after purchasing an additional 91,665 shares during the last quarter. The Manufacturers Life Insurance Company bought a new position in TransAlta during the second quarter valued at $4,015,000. Arrowstreet Capital Limited Partnership bought a new position in TransAlta during the first quarter valued at $5,448,000. Finally, Polar Asset Management Partners Inc. purchased a new stake in TransAlta in the second quarter worth $3,453,000. Institutional investors own 59.00% of the company's stock.

TransAlta Stock Performance

TransAlta stock opened at $11.98 on Friday. TransAlta Corporation has a fifty-two week low of $11.38 and a fifty-two week high of $17.88. The company has a debt-to-equity ratio of 3.64, a quick ratio of 0.77 and a current ratio of 0.84. The stock has a market cap of $3.79 billion, a P/E ratio of -66.55 and a beta of 0.70. The firm's fifty day moving average price is $12.98 and its 200-day moving average price is $13.08.

TransAlta (NYSE:TAC - Get Free Report) TSE: TA last released its earnings results on Friday, July 31st. The utilities provider reported $0.13 earnings per share for the quarter, topping analysts' consensus estimates of $0.11 by $0.02. TransAlta had a positive return on equity of 8.85% and a negative net margin of 2.76%.The company had revenue of $342.85 million during the quarter, compared to the consensus estimate of $379.54 million. On average, equities research analysts expect that TransAlta Corporation will post 0.21 earnings per share for the current fiscal year.

TransAlta Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Tuesday, September 1st will be given a $0.07 dividend. This represents a $0.28 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date is Tuesday, September 1st. TransAlta's dividend payout ratio (DPR) is currently -111.11%.

Analyst Ratings Changes

TAC has been the subject of several recent research reports. Zacks Research raised TransAlta from a "strong sell" rating to a "hold" rating in a report on Monday, August 17th. Canadian Imperial Bank of Commerce reiterated an "outperform" rating on shares of TransAlta in a research report on Friday, July 17th. Weiss Ratings downgraded shares of TransAlta from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, August 18th. TD Cowen initiated coverage on shares of TransAlta in a research report on Wednesday, June 10th. They issued a "buy" rating on the stock. Finally, BMO Capital Markets restated an "outperform" rating on shares of TransAlta in a research note on Monday, August 3rd. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has a consensus 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.

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