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

TransAlta (NYSE:TAC) (TSE:TA) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Tuesday, Zacks.com reports.

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

TAC has been the topic of a number of other research reports. Credit Suisse Group decreased their price objective on shares of TransAlta from C$18.50 to C$18.00 and set an “outperform” rating on the stock in a report on Tuesday, May 25th. Royal Bank of Canada increased their price objective on shares of TransAlta from C$13.00 to C$14.00 and gave the stock an “outperform” rating in a report on Friday, May 14th. CIBC upped their target price on shares of TransAlta from $13.00 to $13.50 and gave the company an “outperform” rating in a research report on Tuesday, April 20th. BMO Capital Markets upgraded shares of TransAlta from a “market perform” rating to an “outperform” rating in a research report on Tuesday, June 1st. Finally, Scotiabank upped their target price on shares of TransAlta from $13.50 to $14.50 and gave the company an “outperform” rating in a research report on Friday, April 16th. One research analyst has rated the stock with a sell rating, one has given a hold rating and six have given a buy rating to the company’s stock. TransAlta currently has a consensus rating of “Buy” and a consensus target price of $14.25.

TAC opened at $9.97 on Tuesday. The stock has a 50-day moving average price of $9.61. The company has a current ratio of 1.93, a quick ratio of 1.70 and a debt-to-equity ratio of 1.27. TransAlta has a twelve month low of $5.72 and a twelve month high of $10.20. The company has a market cap of $2.70 billion, a price-to-earnings ratio of -9.15 and a beta of 1.26.

TransAlta (NYSE:TAC) (TSE:TA) last posted its earnings results on Thursday, May 13th. The utilities provider reported ($0.09) earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.15 by ($0.24). TransAlta had a negative return on equity of 8.59% and a negative net margin of 16.92%. The firm had revenue of $506.98 million during the quarter. As a group, sell-side analysts predict that TransAlta will post 0.16 EPS for the current fiscal year.

A number of hedge funds and other institutional investors have recently bought and sold shares of TAC. Lazard Asset Management LLC bought a new stake in TransAlta during the 4th quarter worth approximately $39,000. Healthcare of Ontario Pension Plan Trust Fund bought a new position in shares of TransAlta during the 4th quarter worth approximately $1,179,000. Credit Suisse AG grew its stake in shares of TransAlta by 1.2% during the 4th quarter. Credit Suisse AG now owns 279,908 shares of the utilities provider’s stock worth $2,124,000 after acquiring an additional 3,437 shares in the last quarter. Brookfield Asset Management Inc. grew its stake in shares of TransAlta by 1.0% during the 4th quarter. Brookfield Asset Management Inc. now owns 33,512,585 shares of the utilities provider’s stock worth $254,491,000 after acquiring an additional 333,190 shares in the last quarter. Finally, Morgan Stanley grew its stake in shares of TransAlta by 20.7% during the 4th quarter. Morgan Stanley now owns 1,214,264 shares of the utilities provider’s stock worth $9,216,000 after acquiring an additional 208,355 shares in the last quarter. 59.93% of the stock is owned by institutional investors and hedge funds.

TransAlta Company Profile

TransAlta Corporation owns, operates, and develops a diverse fleet of electrical power generation assets in Canada, the United States, and Australia. It operates through six segments: Hydro, Wind and Solar, North American Gas, Australian Gas, Alberta Thermal, and Centralia. The company owns and operates hydro, wind and solar, natural gas-fired, and coal-fired facilities.

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