Brokers Set Expectations for TransAlta FY2026 Earnings

Key Points

• National Bank Financial has increased its FY2026 earnings per share (EPS) estimate for TransAlta from $0.19 to $0.28, while the current full-year earnings estimate stands at $0.41 per share.
• TransAlta has recently declared an increase in its quarterly dividend from $0.05 to $0.065, representing an annualized yield of 2.2%.
• Several analysts have rated TransAlta's stock positively, with a consensus rating of "Moderate Buy" and an average price target of $19.88.

TransAlta Corporation (NYSE:TAC - Free Report) TSE: TA - Research analysts at National Bank Financial upped their FY2026 earnings per share (EPS) estimates for TransAlta in a report issued on Monday, August 4th. National Bank Financial analyst P. Kenny now anticipates that the utilities provider will post earnings of $0.28 per share for the year, up from their prior forecast of $0.19. The consensus estimate for TransAlta's current full-year earnings is $0.41 per share.

TransAlta (NYSE:TAC - Get Free Report) TSE: TA last released its quarterly earnings data on Friday, August 1st. The utilities provider reported $0.13 earnings per share for the quarter, beating analysts' consensus estimates of $0.07 by $0.06. The business had revenue of $451.20 million during the quarter, compared to analyst estimates of $473.94 million. TransAlta had a negative net margin of 6.79% and a negative return on equity of 2.06%.

Other equities analysts have also issued research reports about the stock. Jefferies Financial Group upgraded shares of TransAlta from a "hold" rating to a "buy" rating in a research report on Thursday, June 12th. National Bankshares restated an "outperform" rating on shares of TransAlta in a research note on Tuesday, August 5th. Wall Street Zen upgraded shares of TransAlta from a "sell" rating to a "hold" rating in a research report on Saturday, June 14th. TD Securities restated a "buy" rating and set a $20.00 target price (up from $19.00) on shares of TransAlta in a research report on Tuesday, August 5th. Finally, Royal Bank Of Canada dropped their price target on TransAlta from $23.00 to $20.00 and set an "outperform" rating on the stock in a research note on Thursday, May 8th. Two equities research 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 company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $19.88.

TransAlta Trading Down 0.4%

TransAlta stock traded down $0.04 during midday trading on Thursday, reaching $12.04. The stock had a trading volume of 150,021 shares, compared to its average volume of 1,574,580. TransAlta has a 52-week low of $7.82 and a 52-week high of $14.64. The company has a fifty day moving average of $11.34 and a 200 day moving average of $10.21. The company has a quick ratio of 0.72, a current ratio of 0.79 and a debt-to-equity ratio of 4.98. The firm has a market cap of $3.57 billion, a price-to-earnings ratio of -28.61 and a beta of 0.75.

TransAlta Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Monday, September 1st will be given a $0.065 dividend. The ex-dividend date is Friday, August 29th. This is an increase from TransAlta's previous quarterly dividend of $0.05. This represents a $0.26 annualized dividend and a yield of 2.2%. TransAlta's dividend payout ratio is presently -42.86%.

Institutional Investors Weigh In On TransAlta

Several institutional investors have recently modified their holdings of the business. Sowell Financial Services LLC increased its position in shares of TransAlta by 6.0% in the second quarter. Sowell Financial Services LLC now owns 23,892 shares of the utilities provider's stock valued at $258,000 after buying an additional 1,359 shares in the last quarter. NBC Securities Inc. raised its holdings in shares of 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 acquiring an additional 2,912 shares during the last quarter. Creative Planning boosted its position in shares of TransAlta by 6.9% in the second quarter. Creative Planning now owns 51,336 shares of the utilities provider's stock worth $554,000 after buying an additional 3,322 shares during the period. Vident Advisory LLC lifted its holdings in TransAlta by 5.3% during the 4th quarter. Vident Advisory LLC now owns 69,004 shares of the utilities provider's stock worth $976,000 after buying an additional 3,499 shares during the last quarter. Finally, Geode Capital Management LLC boosted its stake in TransAlta by 3.4% during the 4th quarter. Geode Capital Management LLC now owns 126,761 shares of the utilities provider's stock valued at $1,811,000 after purchasing an additional 4,140 shares in the last quarter. 59.00% of the stock is owned by hedge funds and other institutional investors.

TransAlta Company Profile

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.