TransAlta (NYSE:TAC) Share Price Crosses Above 200 Day Moving Average - Here's Why

Key Points

• TransAlta's stock price has surpassed its 200-day moving average of $10.61, closing at $13.86 with significant trading volume of over 1.8 million shares.
• Wall Street analysts are optimistic about TransAlta, with several upgrades resulting in a consensus price target of $19.88 and most analysts rating the stock as a "Buy."
• The company recently increased its dividend to $0.065 per share, reflecting a yield of 1.9%, and demonstrating a positive indicator of its financial strategy.

TransAlta Corporation (NYSE:TAC - Get Free Report) TSE: TA's stock price passed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $10.61 and traded as high as $13.90. TransAlta shares last traded at $13.86, with a volume of 1,811,333 shares trading hands.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on TAC shares. Jefferies Financial Group raised shares of TransAlta from a "hold" rating to a "buy" rating in a research note on Thursday, June 12th. Wall Street Zen raised shares of TransAlta from a "sell" rating to a "hold" rating in a research note on Saturday, June 14th. TD Securities reissued a "buy" rating and issued a $20.00 price objective (up from $19.00) on shares of TransAlta in a research note on Tuesday, August 5th. National Bankshares reissued an "outperform" rating on shares of TransAlta in a research note on Tuesday, August 5th. Finally, Scotiabank raised shares of TransAlta from a "sector perform" rating to a "sector outperform" rating and lifted their price objective for the company from $16.00 to $20.00 in a research note on Friday, July 18th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, TransAlta presently has an average rating of "Buy" and a consensus price target of $19.88.

TransAlta Trading Up 1.6%

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 stock has a market capitalization of $4.11 billion, a P/E ratio of -32.99 and a beta of 0.78. The firm's 50 day simple moving average is $12.39 and its two-hundred day simple moving average is $10.61.

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 for the quarter, beating the consensus estimate of $0.07 by $0.06. TransAlta had a negative net margin of 6.79% and a negative return on equity of 2.06%. The firm had revenue of $451.20 million during the quarter, compared to the consensus estimate of $473.94 million. As a group, analysts forecast that TransAlta Corporation will post 0.41 earnings per share for the current fiscal year.

TransAlta Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Monday, September 1st will be paid a $0.065 dividend. This represents a $0.26 annualized dividend and a yield of 1.9%. This is an increase from TransAlta's previous quarterly dividend of $0.05. The ex-dividend date of this dividend is Friday, August 29th. TransAlta's payout ratio is presently -45.24%.

Institutional Investors Weigh In On TransAlta

Hedge funds and other institutional investors have recently bought and sold shares of the stock. NBC Securities Inc. increased its stake in TransAlta by 145,600.0% in the first quarter. NBC Securities Inc. now owns 2,914 shares of the utilities provider's stock valued at $27,000 after purchasing an additional 2,912 shares in the last quarter. Caitong International Asset Management Co. Ltd increased its position in shares of TransAlta by 48,666.7% during the first quarter. Caitong International Asset Management Co. Ltd now owns 4,389 shares of the utilities provider's stock worth $41,000 after acquiring an additional 4,380 shares in the last quarter. Tobam increased its position in shares of TransAlta by 239.2% during the first quarter. Tobam now owns 10,943 shares of the utilities provider's stock worth $102,000 after acquiring an additional 7,717 shares in the last quarter. Savant Capital LLC bought a new stake in shares of TransAlta during the second quarter worth about $127,000. Finally, Ballentine Partners LLC bought a new stake in shares of TransAlta during the second quarter worth about $134,000. 59.00% of the stock is owned by 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.

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