TransAlta (NYSE:TAC) Upgraded by Zacks Research to Hold Rating

Key Points

• Zacks Research upgraded TransAlta from “strong sell” to “hold,” while broader analyst sentiment remains a “Moderate Buy” with an average price target of $24.50.
• TransAlta shares opened at $12.48, near the lower end of their 52-week range of $11.38–$17.88. The company reported quarterly EPS of $0.13, beating estimates of $0.11, although revenue of $342.85 million fell short of expectations.
• Institutional investors own approximately 59% of TransAlta’s stock, with several funds recently increasing their positions or initiating new stakes.

TransAlta (NYSE:TAC - Get Free Report) TSE: TA was upgraded by equities research analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a report released on Monday,Zacks.com reports.

Other research analysts have also recently issued reports about the company. Weiss Ratings upgraded TransAlta from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday, August 3rd. Canadian Imperial Bank of Commerce reiterated an "outperform" rating on shares of TransAlta in a report on Friday, July 17th. TD Cowen initiated coverage on shares of TransAlta in a research note on Wednesday, June 10th. They issued a "buy" rating on the stock. TD Securities reissued a "buy" rating on shares of TransAlta in a report on Thursday, May 7th. Finally, BMO Capital Markets restated an "outperform" rating on shares of TransAlta in a research report on Monday, August 3rd. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $24.50.

TransAlta Stock Performance

TAC opened at $12.48 on Monday. The company has a market cap of $3.95 billion, a P/E ratio of -69.36 and a beta of 0.70. TransAlta has a 52-week low of $11.38 and a 52-week high of $17.88. 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's 50-day moving average price is $13.34 and its 200-day moving average price is $13.17.

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

Hedge Funds Weigh In On TransAlta

Several institutional investors have recently made changes to their positions in the company. Artemis Investment Management LLP increased its stake in shares of TransAlta by 34.2% in the 4th quarter. Artemis Investment Management LLP now owns 1,818,379 shares of the utilities provider's stock valued at $22,999,000 after purchasing an additional 463,266 shares in the last quarter. Dimensional Fund Advisors LP boosted its position in TransAlta by 6.0% during the first quarter. Dimensional Fund Advisors LP now owns 1,629,540 shares of the utilities provider's stock worth $21,343,000 after purchasing an additional 91,665 shares in the last quarter. Arrowstreet Capital Limited Partnership purchased a new position in TransAlta during the first quarter worth approximately $5,448,000. Capital Innovations LLC acquired a new stake in TransAlta in the fourth quarter valued at approximately $1,259,000. Finally, Bank of Nova Scotia grew its holdings in TransAlta by 23.8% in the first quarter. Bank of Nova Scotia now owns 1,338,554 shares of the utilities provider's stock valued at $17,595,000 after purchasing an additional 257,356 shares during the period. 59.00% of the stock is owned by hedge funds and other institutional investors.

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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