TransAlta Corporation (NYSE:TAC) Sees Significant Increase in Short Interest

Key Points

• Short interest in TransAlta Corporation increased by 39.1% in August, totaling 7,150,000 shares, which represents 2.4% of its total shares.
• Analyst consensus rating for TransAlta is currently a Buy with a target price of $19.88, following several upgrades from various financial institutions.
• The company announced a quarterly dividend increase to $0.065 per share, reflecting a yield of 2.1%, set to be paid on October 1st.

TransAlta Corporation (NYSE:TAC - Get Free Report) TSE: TA was the recipient of a significant increase in short interest in August. As of August 15th, there was short interest totaling 7,150,000 shares, an increase of 39.1% from the July 31st total of 5,140,000 shares. Based on an average trading volume of 1,430,000 shares, the days-to-cover ratio is presently 5.0 days. Approximately 2.4% of the company's stock are short sold. Approximately 2.4% of the company's stock are short sold. Based on an average trading volume of 1,430,000 shares, the days-to-cover ratio is presently 5.0 days.

TransAlta Price Performance

Shares of TAC stock remained flat at $12.65 during trading hours on Friday. The stock had a trading volume of 699,824 shares, compared to its average volume of 905,093. The company has a current ratio of 0.79, a quick ratio of 0.72 and a debt-to-equity ratio of 4.98. The company has a market capitalization of $3.75 billion, a price-to-earnings ratio of -30.12 and a beta of 0.78. The business's fifty day moving average price is $12.11 and its 200 day moving average price is $10.46. TransAlta has a twelve month low of $7.82 and a twelve month high of $14.64.

TransAlta (NYSE:TAC - Get Free Report) TSE: TA last announced its earnings results on Friday, August 1st. The utilities provider reported $0.13 earnings per share for the quarter, topping the consensus estimate of $0.07 by $0.06. TransAlta had a negative return on equity of 2.06% and a negative net margin of 6.79%.The business had revenue of $451.20 million during the quarter, compared to the consensus estimate of $473.94 million. On average, equities analysts forecast that TransAlta will post 0.41 earnings per share for the current fiscal year.

TransAlta Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Monday, September 1st will be given a dividend of $0.065 per share. The ex-dividend date is Friday, August 29th. This is a positive change from TransAlta's previous quarterly dividend of $0.05. This represents a $0.26 annualized dividend and a dividend yield of 2.1%. TransAlta's dividend payout ratio (DPR) is presently -45.24%.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on TAC. Wall Street Zen raised TransAlta from a "sell" rating to a "hold" rating in a report on Saturday, June 14th. TD Securities reissued a "buy" rating and issued a $20.00 price target (up from $19.00) on shares of TransAlta in a report on Tuesday, August 5th. Scotiabank raised TransAlta from a "sector perform" rating to a "sector outperform" rating and boosted their price target for the company from $16.00 to $20.00 in a report on Friday, July 18th. Jefferies Financial Group raised TransAlta from a "hold" rating to a "buy" rating in a research note on Thursday, June 12th. Finally, National Bankshares reaffirmed an "outperform" rating on shares of TransAlta in a research note on Tuesday, August 5th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Buy" and a consensus target price of $19.88.

Institutional Trading of TransAlta

Large investors have recently made changes to their positions in the company. NBC Securities Inc. increased its position in shares of TransAlta by 145,600.0% during the first quarter. NBC Securities Inc. now owns 2,914 shares of the utilities provider's stock worth $27,000 after purchasing an additional 2,912 shares in the last quarter. Caitong International Asset Management Co. Ltd increased its position in shares of TransAlta by 48,666.7% during the first quarter. Caitong International Asset Management Co. Ltd now owns 4,389 shares of the utilities provider's stock worth $41,000 after purchasing an additional 4,380 shares in the last quarter. Tobam increased its position in shares of TransAlta by 239.2% during the first quarter. Tobam now owns 10,943 shares of the utilities provider's stock worth $102,000 after purchasing an additional 7,717 shares in the last quarter. Entropy Technologies LP purchased a new stake in shares of TransAlta during the first quarter worth approximately $119,000. Finally, Savant Capital LLC purchased a new stake in shares of TransAlta during the second quarter worth approximately $127,000. 59.00% of the stock is currently owned by hedge funds and other institutional investors.

About TransAlta

TransAlta Corporation engages in the development, production, and sale of electric energy. It operates through Hydro, Wind and Solar, Gas, Energy Transition, and Energy Marketing segments. The Hydro segment holds interest of approximately 922 megawatts (MW) of owned hydroelectric generating capacity located in Alberta, British Columbia, and Ontario.