TransAlta Corporation (NYSE:TAC) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Analysts broadly favor TransAlta: Nine brokerages give the stock a consensus “Moderate Buy” rating, with six buys, one strong buy, one hold and one sell. The average 12-month price target is $24.50.
• TransAlta reported quarterly EPS of $0.13, beating estimates of $0.11, though revenue of $342.85 million fell short of the $379.54 million consensus forecast. Analysts expect full-year EPS of approximately $0.21.
• The company declared a quarterly dividend of $0.07 per share, equivalent to an annualized $0.28 and a 2.3% yield; institutional investors own about 59% of TransAlta’s outstanding shares.

Shares of TransAlta Corporation (NYSE:TAC - Get Free Report) TSE: TA have received a consensus recommendation of "Moderate Buy" from the nine brokerages that are currently covering the firm, Marketbeat Ratings reports. One analyst has rated the stock with a sell rating, one has assigned a hold rating, six have given a buy rating and one has assigned a strong buy rating to the company. The average 12-month target price among analysts that have issued ratings on the stock in the last year is $24.50.

A number of equities research analysts recently commented on TAC shares. TD Securities restated a "buy" rating on shares of TransAlta in a research report on Thursday, May 7th. Weiss Ratings downgraded TransAlta from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Tuesday, August 18th. Zacks Research raised TransAlta from a "strong sell" rating to a "hold" rating in a research note on Monday, August 17th. Canadian Imperial Bank of Commerce restated an "outperform" rating on shares of TransAlta in a report on Friday, July 17th. Finally, BMO Capital Markets restated an "outperform" rating on shares of TransAlta in a research note on Monday, August 3rd.

TransAlta Price Performance

NYSE:TAC opened at $12.22 on Monday. The company has a quick ratio of 0.77, a current ratio of 0.84 and a debt-to-equity ratio of 3.64. The firm has a market cap of $3.86 billion, a PE ratio of -67.89 and a beta of 0.70. TransAlta has a 12 month low of $11.38 and a 12 month high of $17.88. The company's 50-day moving average price is $13.30 and its two-hundred day moving average price is $13.15.

TransAlta (NYSE:TAC - Get Free Report) TSE: TA last posted its quarterly earnings data on Friday, July 31st. The utilities provider reported $0.13 earnings per share for the quarter, topping the consensus estimate of $0.11 by $0.02. TransAlta had a negative net margin of 2.76% and a positive return on equity of 8.85%. The company had revenue of $342.85 million during the quarter, compared to analyst estimates of $379.54 million. On average, equities analysts anticipate that TransAlta will post 0.21 EPS for the current fiscal year.

TransAlta Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 1st will be issued a dividend of $0.07 per share. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $0.28 dividend on an annualized basis and a yield of 2.3%. TransAlta's dividend payout ratio is currently -111.11%.

Institutional Investors Weigh In On TransAlta

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Persistent Asset Partners Ltd acquired a new position in shares of TransAlta during the second quarter worth approximately $29,000. Caitong International Asset Management Co. Ltd acquired a new stake in shares of TransAlta in the fourth quarter valued at approximately $37,000. EverSource Wealth Advisors LLC raised its position in TransAlta by 37.1% in the 4th quarter. EverSource Wealth Advisors LLC now owns 3,000 shares of the utilities provider's stock worth $38,000 after purchasing an additional 812 shares during the last quarter. Ritter Alpha LP acquired a new position in TransAlta during the 4th quarter worth $131,000. Finally, Sage Rhino Capital LLC lifted its holdings in TransAlta by 8.7% during the 1st quarter. Sage Rhino Capital LLC now owns 11,078 shares of the utilities provider's stock worth $145,000 after buying an additional 882 shares in the last quarter. Institutional investors and hedge funds own 59.00% of the company's stock.

About TransAlta

TransAlta Corporation, originally founded in 1909 as Calgary Power Company Ltd., is a publicly traded energy company specializing in the development, ownership and operation of power generation and transmission assets. Headquartered in Calgary, Alberta, TransAlta has grown from its early hydroelectric roots into a diversified energy provider with a multi-fuel generating fleet.

The company's core business activities encompass power generation, asset management and energy trading services.

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