TransAlta (TSE:TA) Shares Break Above 200 Day Moving Average - Should You Sell?

Key Points

• TransAlta shares rose above their 200-day moving average, reaching C$18.44 before closing at C$18.25, compared with a 200-day average of C$18.09.
• Analysts maintain a generally positive outlook: MarketBeat reports a consensus “Buy” rating and an average price target of C$24.85, despite mixed recent target revisions.
• The company reported quarterly EPS of C$0.18 on C$507 million in revenue, but posted a negative net margin and return on equity; an insider separately purchased 10,000 shares at C$17.77 each.

TransAlta Co. (TSE:TA - Get Free Report) NYSE: TAC shares passed above its 200-day moving average during trading on Friday. The stock has a 200-day moving average of C$18.09 and traded as high as C$18.44. TransAlta shares last traded at C$18.25, with a volume of 2,230,694 shares.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on TA shares. Desjardins boosted their target price on TransAlta from C$18.50 to C$19.00 and gave the company a "hold" rating in a research note on Friday, July 3rd. Canadian Imperial Bank of Commerce dropped their target price on TransAlta from C$26.00 to C$24.50 in a report on Tuesday, September 22nd. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, TransAlta presently has a consensus rating of "Buy" and a consensus target price of C$24.85.

TransAlta Price Performance

The business's 50-day simple moving average is C$17.25 and its 200-day simple moving average is C$18.09. The stock has a market cap of C$5.77 billion, a PE ratio of -58.87, a PEG ratio of -0.07 and a beta of 0.54. The company has a quick ratio of 0.61, a current ratio of 0.84 and a debt-to-equity ratio of 238.01.

TransAlta (TSE:TA - Get Free Report) NYSE: TAC last issued its quarterly earnings data on Friday, July 31st. The company reported C$0.18 EPS for the quarter. The firm 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 Transactions at TransAlta

In other TransAlta news, insider Michael Politeski purchased 10,000 shares of TransAlta stock in a transaction that occurred on Tuesday, August 4th. The shares were bought at an average price of C$17.77 per share, for a total transaction of C$177,700.00. Following the acquisition, the insider directly owned 85,000 shares in the company, valued at approximately C$1,510,450. This trade represents a 13.33% increase in their ownership of the stock. 0.21% of the stock is currently owned by corporate insiders.

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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