TransAlta (TSE:TA) Share Price Passes Above 200 Day Moving Average - Here's Why

Key Points

• TransAlta's stock price has surpassed its 200-day moving average, with the recent high reaching C$16.71 and closing at C$16.61, indicating potential bullish momentum.
• Several brokerages have raised their price targets for TransAlta, with estimates now ranging from C$20.00 to C$23.00, reflecting positive sentiment among analysts.
• The company has a high debt-to-equity ratio of 229.66, which might concern investors, despite its diverse portfolio in power generation across multiple regions.

TransAlta Co. (TSE:TA - Get Free Report) NYSE: TAC passed above its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of C$14.43 and traded as high as C$16.71. TransAlta shares last traded at C$16.61, with a volume of 405,725 shares traded.

Analysts Set New Price Targets

A number of brokerages recently weighed in on TA. ATB Capital boosted their price objective on shares of TransAlta from C$18.00 to C$20.00 and gave the stock an "outperform" rating in a report on Tuesday, August 5th. Royal Bank Of Canada cut their price objective on shares of TransAlta from C$23.00 to C$20.00 and set an "outperform" rating for the company in a research report on Thursday, May 8th. Jefferies Financial Group raised shares of TransAlta from a "hold" rating to a "buy" rating and boosted their price objective for the company from C$12.00 to C$20.00 in a research report on Thursday, June 12th. CIBC upped their target price on shares of TransAlta from C$18.50 to C$20.00 in a report on Thursday, July 10th. Finally, TD Securities upped their target price on shares of TransAlta from C$19.00 to C$20.00 and gave the stock a "buy" rating in a report on Tuesday, August 5th. Two analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Buy" and a consensus target price of C$19.22.

TransAlta Trading Down 0.5%

The company has a debt-to-equity ratio of 229.66, a current ratio of 0.74 and a quick ratio of 0.62. The stock's fifty day simple moving average is C$16.30 and its 200-day simple moving average is C$14.43. The firm has a market cap of C$4.92 billion, a PE ratio of -30.76, a PEG ratio of -0.07 and a beta of 0.77.

TransAlta Company Profile

TransAlta is an independent power producer based in Alberta, Canada. The company operates a diverse and growing fleet of electrical power generation assets in Canada, the United States, and Australia consisting of hydro, wind, solar, battery storage, gas and energy transition facilities. The majority of the company's revenues are derived from the sale of generation capacity, electricity, thermal energy, environmental attributes, and byproducts of power generation.

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