Zacks Investment Research Downgrades TransAlta (NYSE:TAC) to Sell

Zacks Investment Research cut shares of TransAlta (NYSE:TAC) (TSE:TA) from a hold rating to a sell rating in a research report report published on Saturday, Zacks.com reports.

According to Zacks, “TransAlta is Canada’s largest non-regulated electric generation and marketing company. “

Separately, ValuEngine cut TransAlta from a strong-buy rating to a buy rating in a report on Saturday, July 27th. One research analyst has rated the stock with a sell rating, two have issued a hold rating and three have issued a buy rating to the company’s stock. The stock has a consensus rating of Hold and an average target price of $6.75.

Shares of TAC stock opened at $6.46 on Friday. The stock has a market capitalization of $1.86 billion, a PE ratio of -12.19 and a beta of 1.19. TransAlta has a 1-year low of $3.99 and a 1-year high of $7.61. The business has a 50-day moving average of $6.38 and a 200 day moving average of $6.54. The company has a debt-to-equity ratio of 0.98, a current ratio of 1.74 and a quick ratio of 1.36.

TransAlta (NYSE:TAC) (TSE:TA) last issued its earnings results on Friday, August 9th. The utilities provider reported ($0.02) earnings per share for the quarter, beating the consensus estimate of ($0.08) by $0.06. The company had revenue of $371.56 million during the quarter. TransAlta had a negative return on equity of 6.16% and a negative net margin of 9.91%. Analysts anticipate that TransAlta will post -0.14 EPS for the current year.

The business also recently announced a quarterly dividend, which will be paid on Tuesday, October 1st. Investors of record on Tuesday, September 3rd will be issued a dividend of $0.031 per share. The ex-dividend date is Friday, August 30th. This is a boost from TransAlta’s previous quarterly dividend of $0.03. This represents a $0.12 annualized dividend and a yield of 1.92%. TransAlta’s dividend payout ratio is currently -22.64%.

A number of hedge funds have recently modified their holdings of TAC. Millennium Management LLC purchased a new stake in TransAlta during the 4th quarter valued at about $62,000. Jane Street Group LLC purchased a new stake in TransAlta during the 2nd quarter valued at about $80,000. Zurcher Kantonalbank Zurich Cantonalbank raised its position in TransAlta by 12.5% during the 2nd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 18,660 shares of the utilities provider’s stock valued at $122,000 after purchasing an additional 2,068 shares during the last quarter. Man Group plc bought a new position in TransAlta during the 2nd quarter valued at approximately $125,000. Finally, Shell Asset Management Co. raised its position in TransAlta by 15.5% during the 1st quarter. Shell Asset Management Co. now owns 24,600 shares of the utilities provider’s stock valued at $181,000 after purchasing an additional 3,300 shares during the last quarter. Institutional investors own 49.08% of the company’s stock.

TransAlta Company Profile

TransAlta Corporation operates as non-regulated electricity generation and energy marketing company in Canada, the United States, and Western Australia. It operates through eight segments: Canadian Coal, U.S. Coal, Canadian Gas, Australian Gas, Wind and Solar, Hydro, Energy Marketing, and Corporate. The company generates and markets electricity through various generation fuels, such as coal, natural gas, water, solar, and wind.

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