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

Key Points

• TransAlta shares fell below their 200-day moving average, trading as low as C$16.29 and last changing hands at C$16.39, below the C$18.10 long-term average.
• Analysts remain broadly bullish, with a consensus “Buy” rating and an average price target of C$25.00; recent targets ranged from C$19.00 to C$27.00.
• The company reported quarterly EPS of C$0.18 on C$507 million in revenue, while insider Michael Politeski bought 10,000 shares worth C$177,700 at an average price of C$17.77.

Shares of TransAlta Co. (TSE:TA - Get Free Report) NYSE: TAC crossed below its two hundred day moving average during trading on Monday . The stock has a two hundred day moving average of C$18.10 and traded as low as C$16.29. TransAlta shares last traded at C$16.39, with a volume of 2,233,577 shares traded.

Analyst Upgrades and Downgrades

Several equities analysts have commented on TA shares. Scotiabank upgraded shares of TransAlta to a "strong-buy" rating in a report on Wednesday, June 10th. Scotia set a C$27.00 target price on shares of TransAlta and gave the stock a "sector outperform" rating in a research note on Wednesday, June 10th. National Bank Financial lifted their target price on shares of TransAlta from C$22.00 to C$24.00 and gave the stock an "outperform" rating in a report on Monday, June 1st. Royal Bank Of Canada set a C$24.00 price target on shares of TransAlta and gave the company an "outperform" rating in a research note on Wednesday, June 10th. Finally, Desjardins upped their price target on shares of TransAlta from C$18.50 to C$19.00 and gave the company a "hold" rating in a research note on Friday, July 3rd. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Buy" and an average price target of C$25.00.

TransAlta Price Performance

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 50 day moving average of C$17.90 and a 200-day moving average of C$18.10. The firm has a market capitalization of C$5.18 billion, a P/E ratio of -52.87, 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. The firm had revenue of C$507.00 million for the quarter. TransAlta had a negative return on equity of 1.50% and a negative net margin of 1.02%.

Insiders Place Their Bets

In other TransAlta news, insider Michael Politeski acquired 10,000 shares of the business's stock in a transaction on Tuesday, August 4th. The stock was purchased at an average price of C$17.77 per share, with a total value of C$177,700.00. Following the acquisition, the insider directly owned 85,000 shares of the company's stock, valued at approximately C$1,510,450. This trade represents a 13.33% increase in their position. 0.21% of the stock is owned by company 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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