TransAlta (NYSE:TAC) Trading Up 6.3% – Time to Buy?

TransAlta Corporation (NYSE:TAC) (TSE:TA) shares shot up 6.3% during trading on Friday . The company traded as high as $14.01 and last traded at $13.8450. 1,614,246 shares were traded during trading, an increase of 5% from the average session volume of 1,531,616 shares. The stock had previously closed at $13.03.

Key TransAlta News

Here are the key news stories impacting TransAlta this week:

• Positive Sentiment: TransAlta signed an MOU with CPP Investments and Brookfield to develop a data‑centre at its Keephills site with potential to scale to 1 GW; TransAlta would be the exclusive site and power provider — a material new pipeline for long‑term contracted demand and asset monetization. TransAlta Enters Memorandum-of-Understanding for Data Centre Development at Keephills Site
• Positive Sentiment: The company announced a dividend increase in its Q4 results, which supports income investor interest and can underpin the share price. TransAlta Reports Fourth-Quarter and Year-End 2025 Results (Dividend Increase)
• Positive Sentiment: Management set an Investor Day for March 23 in Toronto — this provides a near‑term catalyst where the company will detail strategy, outlook and the data‑centre opportunity, which could drive re‑rating if execution and guidance are well received. TransAlta to Host Investor Day
• Neutral Sentiment: Shares experienced a surge in NYSE composite volume, boosting liquidity and contributing to upward price movement; higher volume can amplify news-driven moves but is not a fundamental change by itself. TransAlta Jumps on NYSE Composite Volume Surge
• Neutral Sentiment: Company posted its full Q4 release, slide deck and conference call materials — useful for investors digging into segment performance and 2026 outlook. Q4 Press Release / Slide Deck
• Negative Sentiment: Q4 earnings missed expectations: adjusted EPS ~($0.0437) vs. consensus $0.05 and revenue of $436.1M vs. $493.4M consensus — weaker results and a negative net margin raise near‑term earnings concerns and likely explain some downward analyst reaction. TransAlta Q4 2025 Earnings Call Transcript
• Negative Sentiment: The earnings miss and revenue shortfall highlight execution and market headwinds (commodity/dispatch and merchant exposure) that press on profitability; investors will watch guidance and 2026 outlook for signs of recovery. TransAlta Q4 2025 Earnings Call Highlights

Analysts Set New Price Targets

Several research analysts have commented on TAC shares. Zacks Research raised TransAlta from a “strong sell” rating to a “hold” rating in a research report on Friday, December 5th. National Bank Financial lowered shares of TransAlta from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, December 3rd. TD Securities reaffirmed a “buy” rating on shares of TransAlta in a report on Wednesday, December 10th. Weiss Ratings reiterated a “sell (d+)” rating on shares of TransAlta in a research note on Wednesday, January 21st. Finally, Royal Bank Of Canada reissued an “outperform” rating on shares of TransAlta in a research report on Monday, November 10th. Five analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, TransAlta presently has an average rating of “Moderate Buy” and a consensus price target of $20.00.

TransAlta Price Performance

The company has a debt-to-equity ratio of 5.22, a current ratio of 0.79 and a quick ratio of 0.71. The company has a 50 day moving average price of $12.90 and a 200 day moving average price of $13.78. The firm has a market cap of $4.07 billion, a PE ratio of -29.20 and a beta of 0.78.

TransAlta (NYSE:TAC) (TSE:TA) last posted its quarterly earnings data on Friday, February 27th. The utilities provider reported ($0.04) earnings per share for the quarter, missing analysts’ consensus estimates of $0.05 by ($0.09). The firm had revenue of $436.10 million during the quarter, compared to analysts’ expectations of $493.39 million. TransAlta had a negative net margin of 7.39% and a positive return on equity of 3.00%. Sell-side analysts expect that TransAlta Corporation will post 0.41 EPS for the current fiscal year.

TransAlta Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Sunday, March 1st will be issued a dividend of $0.065 per share. This represents a $0.26 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend is Friday, February 27th. TransAlta’s dividend payout ratio is currently -39.58%.

Hedge Funds Weigh In On TransAlta

A number of large investors have recently modified their holdings of the business. Rubric Capital Management LP lifted its holdings in shares of TransAlta by 32.9% in the 2nd quarter. Rubric Capital Management LP now owns 15,948,451 shares of the utilities provider’s stock valued at $172,084,000 after buying an additional 3,948,451 shares during the period. Norges Bank acquired a new stake in TransAlta in the fourth quarter valued at $45,298,000. Sculptor Capital LP purchased a new stake in shares of TransAlta during the 4th quarter worth $37,958,000. Bank of Montreal Can boosted its position in shares of TransAlta by 27.5% during the 4th quarter. Bank of Montreal Can now owns 13,295,335 shares of the utilities provider’s stock worth $168,163,000 after purchasing an additional 2,870,026 shares in the last quarter. Finally, Aventail Capital Group LP acquired a new position in shares of TransAlta during the 3rd quarter worth $38,633,000. 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.