TransAlta (TSE:TA) Stock Price Crosses Below 200 Day Moving Average - What's Next?

Key Points

• TransAlta shares fell below their 200-day moving average, trading as low as C$16.46 versus the C$18.01 average, and last changing hands at C$16.76.
• Analysts remain broadly bullish, with a consensus “Buy” rating and an average price target of C$24.85, despite CIBC lowering its target to C$24.50.
• Insider Michael Politeski purchased 5,000 shares for approximately C$80,100, while TransAlta reported C$0.18 in quarterly EPS on C$507 million in revenue and continued to show negative net margin and return on equity.

TransAlta Co. (TSE:TA - Get Free Report) NYSE: TAC's stock price passed below its two hundred day moving average during trading on Tuesday. The stock has a two hundred day moving average of C$18.01 and traded as low as C$16.46. TransAlta shares last traded at C$16.76, with a volume of 960,030 shares trading hands.

Analysts Set New Price Targets

TA has been the subject of several research reports. ATB Cormark Capital Markets set a C$28.00 price target on TransAlta and gave the company an "outperform" rating in a report on Wednesday, June 10th. Scotiabank raised TransAlta to a "strong-buy" rating in a research report on Wednesday, June 10th. Canadian Imperial Bank of Commerce cut their target price on shares of TransAlta from C$26.00 to C$24.50 in a research note on Tuesday, September 22nd. Scotia set a C$27.00 price target on TransAlta and gave the company a "sector outperform" rating in a report on Wednesday, June 10th. Finally, Royal Bank Of Canada set a C$24.00 price objective on shares of TransAlta and gave the company an "outperform" rating in a research note on Wednesday, June 10th. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Buy" and an average target price of C$24.85.

TransAlta Trading Down 0.2%

The company's 50-day moving average is C$17.27 and its 200-day moving average is C$18.01. The company has a debt-to-equity ratio of 238.01, a quick ratio of 0.61 and a current ratio of 0.84. The firm has a market cap of C$5.30 billion, a price-to-earnings ratio of -54.06, a P/E/G ratio of -0.07 and a beta of 0.69.

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

Insider Buying and Selling at TransAlta

In related news, insider Michael Politeski purchased 5,000 shares of the stock in a transaction that occurred on Tuesday, September 15th. The stock was acquired at an average price of C$16.02 per share, with a total value of C$80,100.00. Following the completion of the acquisition, the insider directly owned 90,000 shares in the company, valued at approximately C$1,441,800. This trade represents a 5.88% increase in their position. 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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