TransAlta (NYSE:TAC) Releases Quarterly Earnings Results, Beats Expectations By $0.06 EPS

Key Points

• TransAlta (NYSE:TAC) reported quarterly earnings of $0.13 per share, exceeding analysts' expectations by $0.06.
• The company declared a quarterly dividend of $0.065, up from the previous $0.05, reflecting a 2.1% annual yield.
• Hedge funds have shown increased interest, with UBS AM raising its stake in TransAlta by 27.8% during the first quarter.

TransAlta (NYSE:TAC - Get Free Report) TSE: TA issued its earnings results on Friday. The utilities provider reported $0.13 earnings per share for the quarter, topping analysts' consensus estimates of $0.07 by $0.06, Zacks reports. The business had revenue of $451.20 million during 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%.

TransAlta Price Performance

TAC traded down $0.18 during trading on Thursday, hitting $12.00. The company's stock had a trading volume of 252,705 shares, compared to its average volume of 1,583,714. The company has a current ratio of 0.79, a quick ratio of 0.78 and a debt-to-equity ratio of 4.98. TransAlta has a twelve month low of $7.82 and a twelve month high of $14.64. The business's fifty day simple moving average is $11.25 and its 200 day simple moving average is $10.29. The firm has a market capitalization of $3.56 billion, a price-to-earnings ratio of -28.56 and a beta of 0.75.

TransAlta Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Monday, September 1st will be issued a $0.065 dividend. The ex-dividend date of this dividend 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 -45.24%.

Analysts Set New Price Targets

TAC has been the subject of several recent analyst reports. National Bankshares restated an "outperform" rating on shares of TransAlta in a research note on Tuesday. TD Securities restated a "buy" rating and set a $20.00 price target (up previously from $19.00) on shares of TransAlta in a report on Tuesday. Scotiabank upgraded TransAlta from a "sector perform" rating to a "sector outperform" rating and increased their price target for the company from $16.00 to $20.00 in a report on Friday, July 18th. Wall Street Zen raised TransAlta from a "sell" rating to a "hold" rating in a research report on Saturday, June 14th. Finally, Jefferies Financial Group raised TransAlta from a "hold" rating to a "buy" rating in a research report on Thursday, June 12th. Two equities research analysts have rated the stock with a hold rating, five have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, TransAlta currently has an average rating of "Moderate Buy" and an average target price of $19.88.

Hedge Funds Weigh In On TransAlta

A hedge fund recently raised its stake in TransAlta stock. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of TransAlta Corporation (NYSE:TAC - Free Report) TSE: TA by 27.8% in the 1st quarter, according to the company in its most recent disclosure with the SEC. The fund owned 208,969 shares of the utilities provider's stock after purchasing an additional 45,478 shares during the quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC owned 0.07% of TransAlta worth $1,954,000 as of its most recent filing with the SEC. Institutional investors own 59.00% of the company's stock.

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.