TransAlta: A Look at the Company’s Recent Earnings and Investor Activity
May 10, 2023 – TransAlta Corporation (NYSE:TAC) (TSE:TA), a leading utilities provider, recently released its quarterly earnings results for the period ended February 23rd. The company reported an EPS of ($0.45) for the quarter, missing market consensus estimates by ($0.96). Despite this setback, TransAlta demonstrated a Return on Equity of 9.35% and a Net Margin of 3.90%. Furthermore, the company recorded revenues totaling $629 million during the quarter.
Several hedge funds and other institutional investors have recently increased their activity in TAC shares. According to recent reports, Addenda Capital Inc. purchased a new position in TransAlta shares worth $30,000 while Signaturefd LLC raised its stake in TAC by 50.4% to own over 3000 shares worth $31,000; Sentry Investment Management LLC acquired a new stake in TAC amounting to around $38,000 while US Bancorp DE increased its shareholding by over 1400%, holding approximately 5000 TAC shares valued at $47,000; Lastly, Lazard Asset Management LLC purchased a new position in TAC shares worth about $55,000.
The current market value of TAC stands at around $2.60 billion with shares opening up at $9.77 on May 10th and seeing an average price of $8.60 over a period of fifty days and $8.96 over two hundred days respectively. Meanwhile, TAC’s financial condition indicates that it has moderate liquidity levels with the current ratio standing at around 1.29 as well as a quick ratio of close to 1.23 indicating efficient management of short-term liabilities.
In comparison to other peer companies in its sector such as Enbridge Inc, Duke Energy Corp, and NextEra Energy Inc., TAC’s market performance is average; with a price-to-earnings ratio of 33.69 and a beta of 1.06, indicating a modest level of volatility in share prices.
In conclusion, despite present challenges to TransAlta Corporation’s stock prices, the company continues to demonstrate resilience through its sound financials and promising investor activity. Hedge funds are showing increasing investment interest in TransAlta, suggesting that positive results may be on the horizon for the company. Investors should monitor TAC closely to identify potential growth opportunities in this utilities sector.
TransAlta Receives Positive Analyst Reports Despite Q2 2023 Earnings Concerns
TransAlta Co. (NYSE:TAC) (TSE:TA) has recently been analyzed by Atb Cap Markets regarding their Q2 2023 earnings per share estimates. Research analyst N. Heywood suggests a decrease in expected earnings per share from $0.07 to $0.04 for the quarter, causing some concern.
However, other analysts have issued positive reports about TransAlta, citing an upgrade from “sector perform” to “outperform” from National Bank Financial and Credit Suisse Group’s upgrade from a “neutral” rating to an “outperform” rating. StockNews.com has even raised TransAlta from a “hold” to a “buy” rating.
Due to these positive reports, TransAlta continues its upward trend with four investment analysts giving the stock a “buy” rating and an average price target of $16.10 as estimated through Bloomberg data.
In addition to these recent analyses, TransAtla also announced that they will pay a quarterly dividend on July 1st for shareholders of record on June 1st amounting to $0.041 per share. This equates to an annualized dividend of $0.16 and yield of 1.68%. Although the company’s dividend payout ratio is currently at 55.17%, investors can still expect solid returns considering all of the positive reports surrounding the company.
Overall, it seems that TransAlta is poised for continued success in the coming years despite Atb Cap Markets’ concerns about their Q2 2023 earnings per share estimates. Investors should keep an eye out for possible fluctuations but remain confident in TransAlta’s potential growth as evidenced by recent upgrades and positive ratings from various investment analysts and firms.