TransAlta (TSE:TA) Share Price Breaks Above 200 Day Moving Average - What's Next?

Key Points

• TransAlta shares broke above their 200-day moving average, reaching C$18.12 and closing at C$18.06 on trading volume of about 1.56 million shares. The stock was up 4.9%, with its 50-day moving average at C$17.33.
• Analyst sentiment remains positive, with a consensus “Buy” rating and a C$24.61 price target. Recent targets included Desjardins raising its target to C$19.00 while CIBC lowered its target to C$24.50.
• TransAlta reported quarterly EPS of C$0.18 on revenue of C$507 million, but continued to post a negative net margin and return on equity. Insider Michael Politeski bought 10,000 shares, increasing his holdings by 13.33%.

TransAlta Co. (TSE:TA - Get Free Report) NYSE: TAC passed above its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of C$17.95 and traded as high as C$18.12. TransAlta shares last traded at C$18.06, with a volume of 1,559,120 shares trading hands.

Analysts Set New Price Targets

A number of analysts have weighed in on the stock. Desjardins increased their target price on shares of TransAlta from C$18.50 to C$19.00 and gave the company a "hold" rating in a research report on Friday, July 3rd. Canadian Imperial Bank of Commerce decreased their target price on TransAlta from C$26.00 to C$24.50 in a research report on Tuesday, September 22nd. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Buy" and a consensus price target of C$24.61.

TransAlta Stock Up 4.9%

The company has a current ratio of 0.84, a quick ratio of 0.61 and a debt-to-equity ratio of 238.01. The company has a market capitalization of C$5.71 billion, a PE ratio of -58.26, a P/E/G ratio of -0.07 and a beta of 0.54. The stock's fifty day moving average is C$17.33 and its two-hundred day moving average is C$17.95.

TransAlta (TSE:TA - Get Free Report) NYSE: TAC last issued its quarterly earnings results on Friday, July 31st. The company reported C$0.18 earnings per share (EPS) for the quarter. The company had revenue of C$507.00 million during the quarter. TransAlta had a negative net margin of 1.02% and a negative return on equity of 1.50%.

Insider Buying and Selling

In other TransAlta news, insider Michael Politeski acquired 10,000 shares of TransAlta stock in a transaction that occurred on Tuesday, August 4th. The stock was acquired at an average cost of C$17.77 per share, for a total transaction of C$177,700.00. Following the purchase, the insider owned 85,000 shares of the company's stock, valued at approximately C$1,510,450. This represents a 13.33% increase in their ownership of the stock. Company insiders own 0.21% of the company's stock.

About TransAlta

TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States and Australia with a focus on long-term shareholder value. TransAlta provides municipalities, medium and large industries, businesses and utility customers with affordable, energy efficient and reliable power. Today, TransAlta is one of Canada's largest producers of wind power and Alberta's largest producer of thermal generation and hydro-electric power. For over 114 years, TransAlta has been a responsible operator and a proud member of the communities where we operate and where our employees work and live.

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