TransAlta (NYSE:TAC) Shares Gap Down Following Weak Earnings

TransAlta Corporation (NYSE:TAC) (TSE:TA) shares gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $16.87, but opened at $13.81. TransAlta shares last traded at $14.3220, with a volume of 2,414,192 shares.

The utilities provider reported ($0.01) EPS for the quarter, missing analysts’ consensus estimates of $0.06 by ($0.07). TransAlta had a negative return on equity of 2.06% and a negative net margin of 6.79%.The business had revenue of $441.57 million for the quarter, compared to the consensus estimate of $558.84 million.

TransAlta Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, January 1st. Stockholders of record on Monday, December 1st will be paid a $0.065 dividend. The ex-dividend date is Monday, December 1st. This represents a $0.26 dividend on an annualized basis and a dividend yield of 1.7%. TransAlta’s dividend payout ratio (DPR) is -42.86%.

Analyst Ratings Changes

A number of research analysts recently issued reports on TAC shares. CIBC reaffirmed an “outperform” rating on shares of TransAlta in a report on Monday, October 20th. National Bankshares reaffirmed an “outperform” rating on shares of TransAlta in a research note on Tuesday, August 5th. Zacks Research lowered shares of TransAlta from a “strong-buy” rating to a “hold” rating in a research report on Friday, October 3rd. Scotiabank reissued an “outperform” rating on shares of TransAlta in a research note on Monday, October 6th. Finally, Weiss Ratings reissued a “sell (d+)” rating on shares of TransAlta in a report on Wednesday, October 8th. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $19.88.

Institutional Investors Weigh In On TransAlta

A number of institutional investors have recently made changes to their positions in TAC. Caitong International Asset Management Co. Ltd lifted its stake in TransAlta by 48,666.7% in the first quarter. Caitong International Asset Management Co. Ltd now owns 4,389 shares of the utilities provider’s stock valued at $41,000 after buying an additional 4,380 shares during the period. Sage Rhino Capital LLC acquired a new position in shares of TransAlta during the 3rd quarter worth about $139,000. Savant Capital LLC bought a new stake in shares of TransAlta in the 2nd quarter valued at about $127,000. Ballentine Partners LLC acquired a new stake in shares of TransAlta in the 2nd quarter valued at approximately $134,000. Finally, Entropy Technologies LP bought a new position in TransAlta during the 1st quarter worth approximately $119,000. 59.00% of the stock is owned by institutional investors and hedge funds.

TransAlta Stock Up 3.9%

The firm has a market cap of $4.61 billion, a P/E ratio of -36.96 and a beta of 0.80. The firm’s 50 day moving average is $14.83 and its two-hundred day moving average is $12.19. The company has a current ratio of 0.79, a quick ratio of 0.72 and a debt-to-equity ratio of 4.98.

TransAlta Company Profile

TransAlta Corporation engages in the development, production, and sale of electric energy. It operates through Hydro, Wind and Solar, Gas, Energy Transition, and Energy Marketing segments. The Hydro segment holds interest of approximately 922 megawatts (MW) of owned hydroelectric generating capacity located in Alberta, British Columbia, and Ontario.