TransAlta Co. (TSE:TA) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• "Moderate Buy" consensus from eight analysts (seven buy, one hold) with an average 1-year price target of C$24.25.
• Significant insider selling: insiders disposed of 70,953 shares worth about US$1.26 million over the past three months, leaving insiders with roughly 0.21% ownership.
• Mixed fundamentals: TransAlta reported a quarterly loss of C($0.06) EPS and has a very high debt-to-equity ratio (320.51), suggesting leverage and profitability concerns despite analyst optimism.

Shares of TransAlta Co. (TSE:TA - Get Free Report) NYSE: TAC have earned a consensus recommendation of "Moderate Buy" from the eight research firms that are covering the firm, MarketBeat Ratings reports. One equities research analyst has rated the stock with a hold rating and seven have assigned a buy rating to the company. The average 1-year price objective among brokers that have updated their coverage on the stock in the last year is C$24.25.

Several equities research analysts have recently issued reports on TA shares. Canadian Imperial Bank of Commerce raised their price target on TransAlta from C$25.00 to C$26.00 in a research report on Wednesday, December 17th. Jefferies Financial Group reduced their target price on shares of TransAlta from C$27.00 to C$22.00 in a research note on Wednesday, January 21st. Desjardins decreased their price objective on TransAlta from C$19.00 to C$18.00 and set a "hold" rating on the stock in a report on Tuesday, February 10th. TD Securities lifted their target price on shares of TransAlta from C$26.00 to C$27.00 and gave the company a "buy" rating in a research note on Wednesday, December 10th. Finally, ATB Cormark Capital Markets lifted 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 note on Tuesday, March 24th.

Insider Buying and Selling

In related news, insider Jane Nyla Fedoretz sold 7,000 shares of the firm's stock in a transaction that occurred on Tuesday, March 31st. The shares were sold at an average price of C$18.15, for a total value of C$127,050.00. Following the completion of the sale, the insider owned 84,453 shares of the company's stock, valued at C$1,532,821.95. This trade represents a 7.65% decrease in their ownership of the stock. Also, insider Christopher Douglas Fralick sold 36,453 shares of TransAlta stock in a transaction on Thursday, March 26th. The stock was sold at an average price of C$17.90, for a total transaction of C$652,508.70. Following the sale, the insider directly owned 46,939 shares of the company's stock, valued at C$840,208.10. This represents a 43.71% decrease in their position. In the last three months, insiders sold 70,953 shares of company stock valued at $1,262,409. 0.21% of the stock is currently owned by company insiders.

TransAlta Trading Up 1.3%

TransAlta stock opened at C$19.12 on Thursday. The company has a debt-to-equity ratio of 320.51, a current ratio of 0.73 and a quick ratio of 0.62. The company has a market capitalization of C$5.67 billion, a price-to-earnings ratio of -29.88, a PEG ratio of -0.07 and a beta of 0.53. TransAlta has a one year low of C$11.27 and a one year high of C$25.03. The company's fifty day moving average price is C$17.91 and its two-hundred day moving average price is C$19.20.

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

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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