TransAlta Corporation (NYSE:TAC) Stock Has Consensus Price Target of $24.50

Shares of TransAlta Corporation (NYSE:TAC) (TSE:TA) have been assigned an average recommendation of “Buy” from the nine analysts that are currently covering the stock, Marketbeat reports. One equities research analyst has rated the stock with a hold rating, six have assigned a buy rating and two have assigned a strong buy rating to the company. The average 12 month price target among brokerages that have updated their coverage on the stock in the last year is $24.50.

Several research analysts have weighed in on the company. Zacks Research upgraded TransAlta from a “hold” rating to a “strong-buy” rating in a research note on Thursday, November 5th. Weiss Ratings upgraded TransAlta from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Thursday, October 8th. Canadian Imperial Bank of Commerce reaffirmed an “outperform” rating on shares of TransAlta in a report on Friday, July 17th. Finally, BMO Capital Markets reissued an “outperform” rating on shares of TransAlta in a research note on Monday, August 3rd.

TransAlta Stock Performance

Shares of TransAlta stock opened at $13.39 on Friday. The firm’s fifty day simple moving average is $12.55 and its 200-day simple moving average is $12.97. The stock has a market capitalization of $4.24 billion, a price-to-earnings ratio of 51.38 and a beta of 0.73. TransAlta has a 12 month low of $11.38 and a 12 month high of $15.65. The company has a debt-to-equity ratio of 3.30, a current ratio of 0.87 and a quick ratio of 0.79.

TransAlta (NYSE:TAC) (TSE:TA) last issued its quarterly earnings data on Tuesday, November 3rd. The utilities provider reported $0.13 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.05 by $0.08. TransAlta had a net margin of 2.24% and a return on equity of 14.75%. The company had revenue of $376.43 million for the quarter, compared to the consensus estimate of $366.40 million. As a group, equities analysts forecast that TransAlta will post 0.28 earnings per share for the current year.

TransAlta Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, January 1st. Investors of record on Tuesday, December 1st will be given a C$0.07 dividend. The ex-dividend date is Tuesday, December 1st. This represents a $0.28 dividend on an annualized basis and a yield of 2.1%. TransAlta’s dividend payout ratio (DPR) is presently 181.82%.

Hedge Funds Weigh In On TransAlta

A number of large investors have recently modified their holdings of TAC. Persistent Asset Partners Ltd purchased a new stake in shares of TransAlta during the 2nd quarter worth $29,000. EverSource Wealth Advisors LLC increased its holdings in shares of TransAlta by 54.7% in the 1st quarter. EverSource Wealth Advisors LLC now owns 4,642 shares of the utilities provider’s stock valued at $61,000 after purchasing an additional 1,642 shares in the last quarter. Miller Howard Investments Inc. NY acquired a new stake in shares of TransAlta during the 3rd quarter valued at approximately $128,000. Lee Financial Co purchased a new stake in shares of TransAlta during the 3rd quarter worth approximately $158,000. Finally, Envestnet Asset Management Inc. purchased a new stake in shares of TransAlta during the 2nd quarter worth approximately $159,000. 59.00% of the stock is owned by hedge funds and other institutional investors.

About TransAlta

TransAlta Corporation is a Canadian electric power generator that develops, owns and operates facilities producing electricity for wholesale markets. Its generation portfolio includes hydroelectric, wind, solar and thermal power, including natural gas-fired facilities. Founded in 1911 as Calgary Power, the company has a long history of supplying electricity in Western Canada. TransAlta’s operations and power-generation assets span Canada, the United States and Australia. The company also provides energy marketing and related services, managing and selling electricity and other energy products from its generation portfolio.