TransAlta Shares Downgraded by CIBC World Markets

TransAlta (TSE:TA) has recently been downgraded by CIBC World Markets from a "strong-buy" rating to a "hold" rating, according to a report released on Wednesday. This decision reflects a shift in analyst sentiment towards the company, as highlighted by Zacks.com.

In addition to CIBC's revision, other analysts have also commented on TransAlta's stock performance. CIBC lowered its rating from "outperform" to "neutral" and raised its target price for the company from C$17.00 to C$23.00 in a research report on the same day. Desjardins Bank also adjusted its price target, increasing it from C$15.50 to C$16.00 while maintaining a "hold" rating. Royal Bank of Canada set a new target price for the stock, raising it from C$14.00 to C$16.00. Furthermore, BMO Capital Markets revised its expectations from C$17.00 to C$22.00, while TD Securities updated their target from C$16.00 to C$18.00, assigning a "buy" rating.

Currently, analysts have given a mix of ratings for TransAlta, with three recommending a hold, four suggesting a buy, and one indicating a strong buy. This results in a consensus rating of "Moderate Buy" with an average target price of C$18.33, as reported by MarketBeat.

TransAlta's Market Performance

TransAlta’s share opened at C$19.12 on the day of the downgrade. The company's 50-day moving average is C$17.45, while the 200-day moving average stands at C$13.74. Over the past year, TransAlta has experienced a low of C$8.22 and a high of C$20.98. The market capitalization for the company is approximately C$5.70 billion, and its price-to-earnings ratio is 10.06, indicating its earnings compared to its share price. With a debt-to-equity ratio of 219.87, this highlights the company's leverage in the market.

Insider Transactions

In recent news related to insider trading, Jane Nyla Fedoretz, a senior officer, sold 25,000 shares of TransAlta on November 21 at an average price of C$15.11, totaling C$377,750.00. Additionally, Director John Harry Kousinioris sold 45,000 shares on December 5 at an average price of C$17.67, which accounted for C$795,150.00. Over the last three months, insiders have sold a total of 204,763 shares valued at C$3,478,670. The insiders currently own about 0.21% of the company’s total shares.

Overview of TransAlta Corporation

TransAlta Corporation specializes in the development, production, and sale of electric energy. It operates across various sectors, which include Hydro, Wind and Solar, Gas, Energy Transition, and Energy Marketing. Its Hydro segment alone holds roughly 922 megawatts (MW) of electric generating capacity across Alberta, British Columbia, and Ontario.

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