TransAlta Corporation (NYSE:TAC) Receives Consensus Recommendation of “Moderate Buy” from Analysts

Shares of TransAlta Corporation (NYSE:TAC) (TSE:TA) have been assigned a consensus recommendation of “Moderate Buy” from the ten analysts that are currently covering the firm, Marketbeat.com reports. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating, six have issued a buy rating and one has issued a strong buy rating on the company. The average 12 month price target among analysts that have covered the stock in the last year is $19.8750.

TAC has been the subject of a number of research analyst reports. CIBC reiterated an “outperform” rating on shares of TransAlta in a research report on Monday, October 20th. Zacks Research raised TransAlta from a “strong sell” rating to a “hold” rating in a research report on Friday, December 5th. TD Securities restated a “buy” rating on shares of TransAlta in a research note on Wednesday, December 10th. Scotiabank reaffirmed an “outperform” rating on shares of TransAlta in a research note on Monday, October 6th. Finally, Natl Bk Canada lowered TransAlta from a “strong-buy” rating to a “hold” rating in a report on Wednesday, December 3rd.

TransAlta Stock Up 2.0%

Shares of TransAlta stock opened at $12.72 on Wednesday. TransAlta has a 1 year low of $7.82 and a 1 year high of $17.88. The company has a market cap of $3.77 billion, a P/E ratio of -26.49 and a beta of 0.75. The company has a current ratio of 0.79, a quick ratio of 0.71 and a debt-to-equity ratio of 5.22. The stock has a 50-day moving average price of $15.07 and a 200 day moving average price of $13.32.

TransAlta (NYSE:TAC) (TSE:TA) last issued its earnings results on Thursday, November 6th. The utilities provider reported ($0.01) earnings per share for the quarter, missing analysts’ consensus estimates of $0.06 by ($0.07). The business had revenue of $441.57 million during the quarter, compared to analyst estimates of $558.84 million. TransAlta had a negative net margin of 7.39% and a positive return on equity of 3.00%. As a group, analysts expect that TransAlta will post 0.41 EPS for the current fiscal year.

TransAlta Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Sunday, March 1st will be given a $0.065 dividend. This represents a $0.26 annualized dividend and a yield of 2.0%. The ex-dividend date of this dividend is Friday, February 27th. TransAlta’s payout ratio is currently -39.58%.

Institutional Investors Weigh In On TransAlta

Institutional investors and hedge funds have recently modified their holdings of the business. TD Waterhouse Canada Inc. lifted its position in shares of TransAlta by 19.5% in the second quarter. TD Waterhouse Canada Inc. now owns 70,554 shares of the utilities provider’s stock worth $754,000 after buying an additional 11,532 shares during the last quarter. Y Intercept Hong Kong Ltd bought a new position in shares of TransAlta in the 2nd quarter valued at approximately $1,039,000. Timelo Investment Management Inc. bought a new stake in TransAlta during the second quarter worth approximately $647,000. CenterBook Partners LP acquired a new position in TransAlta during the second quarter valued at approximately $8,367,000. Finally, Invesco Ltd. raised its position in shares of TransAlta by 1,150.1% in the first quarter. Invesco Ltd. now owns 904,342 shares of the utilities provider’s stock valued at $8,456,000 after purchasing an additional 832,000 shares during the period. Institutional investors and hedge funds own 59.00% of the company’s stock.

TransAlta Company Profile

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.