TransAlta Shares Downgraded to Sector Perform by Scotiabank

Scotiabank has recently revised its rating for TransAlta (TSE:TA – Free Report) (NYSE:TAC), bringing it down from an outperform to a sector perform rating in a report that was released on Thursday morning. The financial institution has set a target price of C$21.00 for the company’s stock, which is an increase from the prior target price of C$19.00. This change indicates that while the firm still sees potential in TransAlta, it is now more cautious about its short-term performance.

Additionally, other equity analysts have shared their insights on TransAlta in the past weeks. For instance, CIBC also downgraded TransAlta from an “outperform” rating to “neutral” and raised the price target from C$17.00 to C$23.00 according to their research report dated January 8th. Furthermore, BMO Capital Markets increased its target price from C$17.00 to C$22.00 in a report published on December 16th. Desjardins raised its price target on TransAlta from C$15.50 to C$16.00, while issuing a “hold” rating on December 18th. Significantly, CIBC World Markets reduced its rating from a “strong-buy” to a “hold” on January 8th, as well. The Royal Bank of Canada also made an adjustment, increasing its price target from C$14.00 to C$16.00 in early November. Currently, a total of four equity research analysts have rated TransAlta stock with a hold rating, while another four have issued buy ratings. Overall, according to data from MarketBeat.com, the company's current average rating stands at "Moderate Buy," with a consensus price target of C$18.71.

TransAlta Stock Performance

On Thursday, shares of TransAlta (TSE:TA) opened at C$16.71. The company showcases financial metrics including a current ratio of 0.84, a quick ratio of 0.62, and a notably high debt-to-equity ratio of 219.87. Looking at TransAlta's yearly performance, the stock has seen lows of C$8.22 and highs of C$21.22 within the last twelve months. With a market capitalization of C$4.98 billion, the company reports a PE ratio of 8.79 and a P/E/G ratio of -0.07. Its 50-day moving average is C$18.64, while the 200-day moving average sits at C$14.69.

Quarterly Earnings Results

TransAlta recently released its quarterly earnings on November 5th, where it reported earnings of C($0.12) per share. This result fell short of analysts' expectations, who had projected earnings of C$0.18, marking a difference of C($0.30). The company reported a net margin of 19.50% and a return on equity of 32.01%, a significant change from the same quarter in the previous year when the earnings per share were recorded at $1.19.

Insider Transactions

In insider news, Director John Harry Kousinioris sold 35,179 shares of TransAlta on December 18th at an average price of C$20.73, accumulating a total of C$729,260.67 from the sale. Moreover, Senior Officer Jane Nyla Fedoretz sold 10,000 shares on December 16th at an average of C$19.41, totaling C$194,100.00. In the past ninety days, insiders have collectively sold 204,763 shares worth approximately $3,478,670, indicating a level of insider activity. Notably, insiders currently hold 0.21% of the company’s stock.

Understanding TransAlta Corporation

TransAlta Corporation focuses on the development, production, and sale of electric energy. The company operates through various segments, including Hydro, Wind and Solar, Gas, Energy Transition, and Energy Marketing. Within the Hydro segment, TransAlta maintains around 922 megawatts (MW) of owned hydroelectric generating capacity, located across Alberta, British Columbia, and Ontario.

TransAlta, Scotiabank, Stock