TransAlta Co. (TSE:TA) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analysts give TransAlta a consensus "Moderate Buy" (7 buys, 1 hold) with an average 12‑month target of C$24.25, versus the recent open around C$16.94, implying notable upside potential.
• Fundamentals show risks: the company reported negative EPS (C($0.06)), negative ROE and net margin, and a very high debt‑to‑equity ratio of 320.51, indicating leverage and profitability concerns.
• Insiders have been net sellers recently—70,953 shares (~US$1.26M) sold in the last 90 days—and insiders now own only 0.21% of the stock.

Shares of TransAlta Co. (TSE:TA - Get Free Report) NYSE: TAC have been given a consensus recommendation of "Moderate Buy" by the eight brokerages that are presently covering the stock, MarketBeat Ratings reports. One equities research analyst has rated the stock with a hold recommendation and seven have given a buy recommendation to the company. The average 12 month target price among brokerages that have covered the stock in the last year is C$24.25.

Several equities analysts have recently commented on the stock. Desjardins dropped their target price on shares of TransAlta from C$19.00 to C$18.00 and set a "hold" rating for the company in a research report on Tuesday, February 10th. ATB Cormark Capital Markets boosted their target price on shares of TransAlta from C$27.00 to C$28.00 and gave the company an "outperform" rating in a research report on Tuesday, March 24th. National Bank Financial upgraded shares of TransAlta from a "hold" rating to an "outperform" rating and set a C$22.00 target price for the company in a research report on Tuesday, March 24th. Finally, Jefferies Financial Group dropped their target price on shares of TransAlta from C$27.00 to C$22.00 in a research report on Wednesday, January 21st.

TransAlta Price Performance

Shares of TransAlta stock opened at C$16.94 on Monday. TransAlta has a twelve month low of C$11.56 and a twelve month high of C$25.03. The company has a quick ratio of 0.62, a current ratio of 0.73 and a debt-to-equity ratio of 320.51. The company has a 50-day simple moving average of C$17.79 and a two-hundred day simple moving average of C$18.91. The stock has a market capitalization of C$5.03 billion, a price-to-earnings ratio of -26.47, a price-to-earnings-growth ratio of -0.07 and a beta of 0.54.

TransAlta (TSE:TA - Get Free Report) NYSE: TAC last issued its quarterly earnings data on Friday, February 27th. The company reported C($0.06) earnings per share for the quarter. TransAlta had a negative return on equity of 8.84% and a negative net margin of 5.74%.The business had revenue of C$712.00 million during the quarter.

Insider Activity at TransAlta

In other news, insider Christopher Douglas Fralick sold 36,453 shares of the business's stock in a transaction that occurred on Thursday, March 26th. The shares were sold at an average price of C$17.90, for a total value of C$652,508.70. Following the completion of the transaction, the insider directly owned 46,939 shares in the company, valued at approximately C$840,208.10. The trade was a 43.71% decrease in their position. Also, insider Jane Nyla Fedoretz sold 10,000 shares of the company's stock in a transaction that occurred on Tuesday, March 24th. The stock was sold at an average price of C$17.45, for a total transaction of C$174,500.00. Following the transaction, the insider owned 103,953 shares of the company's stock, valued at approximately C$1,813,979.85. This represents a 8.78% decrease in their ownership of the stock. Insiders sold a total of 70,953 shares of company stock valued at $1,262,409 over the last 90 days. Corporate insiders own 0.21% of the company's stock.

TransAlta Company Profile

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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