TransAlta Corporation (NYSE:TAC) Short Interest Update

Key Points

• TransAlta Corporation's short interest dropped by 41.8% in July, with 5,140,000 shares short sold, indicating a decreased bearish sentiment from earlier in the month.
• Institutional investors now hold 59% of TransAlta's stock, with substantial increases in holdings by several firms, notably NBC Securities and Caitong International Asset Management, showing rising confidence in the company.
• The company has announced an increased quarterly dividend of $0.065 per share, representing a 2.1% yield, reflecting a positive approach towards shareholder returns despite a negative earnings report.

TransAlta Corporation (NYSE:TAC - Get Free Report) TSE: TA saw a large drop in short interest in the month of July. As of July 31st, there was short interest totaling 5,140,000 shares, adropof41.8% from the July 15th total of 8,830,000 shares. Currently,1.7% of the company's shares are short sold. Based on an average daily volume of 1,410,000 shares, the days-to-cover ratio is presently 3.6 days. Based on an average daily volume of 1,410,000 shares, the days-to-cover ratio is presently 3.6 days. Currently,1.7% of the company's shares are short sold.

Institutional Investors Weigh In On TransAlta

Several large investors have recently added to or reduced their stakes in TAC. NBC Securities Inc. increased its position in TransAlta by 145,600.0% in the first quarter. NBC Securities Inc. now owns 2,914 shares of the utilities provider's stock worth $27,000 after buying an additional 2,912 shares during the period. Caitong International Asset Management Co. Ltd increased its position in TransAlta by 48,666.7% in the first quarter. Caitong International Asset Management Co. Ltd now owns 4,389 shares of the utilities provider's stock worth $41,000 after buying an additional 4,380 shares during the period. Tobam increased its holdings in shares of TransAlta by 239.2% during the first quarter. Tobam now owns 10,943 shares of the utilities provider's stock valued at $102,000 after purchasing an additional 7,717 shares during the period. Entropy Technologies LP acquired a new position in shares of TransAlta during the first quarter valued at $119,000. Finally, Savant Capital LLC acquired a new position in shares of TransAlta during the second quarter valued at $127,000. 59.00% of the stock is owned by institutional investors and hedge funds.

TransAlta Stock Performance

Shares of TAC opened at $12.36 on Monday. The business's 50 day moving average is $11.55 and its two-hundred day moving average is $10.24. TransAlta has a 52-week low of $7.82 and a 52-week high of $14.64. The firm has a market cap of $3.66 billion, a price-to-earnings ratio of -29.43 and a beta of 0.75. The company has a quick ratio of 0.72, a current ratio of 0.79 and a debt-to-equity ratio of 4.98.

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

TransAlta Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Monday, September 1st will be paid a dividend of $0.065 per share. This represents a $0.26 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date is Friday, August 29th. This is an increase from TransAlta's previous quarterly dividend of $0.05. TransAlta's dividend payout ratio (DPR) is currently -42.86%.

Analyst Upgrades and Downgrades

TAC has been the topic of a number of research reports. Jefferies Financial Group upgraded TransAlta from a "hold" rating to a "buy" rating in a report on Thursday, June 12th. Scotiabank raised TransAlta from a "sector perform" rating to a "sector outperform" rating and boosted their price target for the stock from $16.00 to $20.00 in a research report on Friday, July 18th. Royal Bank Of Canada reduced their price target on TransAlta from $23.00 to $20.00 and set an "outperform" rating on the stock in a research report on Thursday, May 8th. National Bankshares reissued an "outperform" rating on shares of TransAlta in a research report on Tuesday, August 5th. Finally, Wall Street Zen raised TransAlta from a "sell" rating to a "hold" rating in a research report on Saturday, June 14th. Two investment analysts have rated the stock with a hold rating, five have assigned a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $19.88.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.