What should you know before buying stock in TransAlta Corporation (TAC)

TransAlta Corporation (NYSE: TAC) is -20.39% lower on its value in year-to-date trading and has touched a low of $3.63 and a high of $8.50 in the current 52-week trading range. The TAC stock was last observed hovering at around $5.71 in the last trading session, with the day’s loss setting it -0.01% off its average median price target of $7.47 for the next 12 months. It is also 33.33% off the consensus price target high of $8.55 offered by 10 analysts, but current levels are -14.0% lower than the price target low of $5.00 for the same period.

Currently trading at $5.70, the stock is -6.03% and -1.94% below its SMA20 and SMA50 respectively. However, with a daily trading volume of 0.23 million and changing -0.18% at the moment leaves the stock -10.33% off its SMA200. TAC registered -6.71% loss for a year compared to 6-month loss of -19.61%. The firm has a 50-day simple moving average (SMA 50) of $5.89 and a 200-day simple moving average (SMA200) of $6.34.

The stock witnessed a -2.06% gain in the last 1 month and extending the period to 3 months gives it a 11.55%, and is -5.94% down over the last 5 days. If we measure the stock’s price variations over the week and the month, we find that the volatility rates stand at 2.93% over the week and 3.32% over the month.

TransAlta Corporation (TAC) has around 1543 employees, a market worth around $1.57B and $1.70B in sales. Current P/E ratio is 15.08. Profit margin for the company is 6.20%. Distance from 52-week low is 57.02% and -32.94% from its 52-week high. The company has generated returns on investments over the last 12 months (5.70%).

TransAlta Corporation (TAC) Analyst Forecasts

Analyst recommendations provided by FactSet shows that the consensus forecast for TransAlta Corporation (TAC) is a “Overweight”. 10 analysts offering their recommendations for the stock have an average rating of 3.00, where 4 rate it as a Hold and 0 think it is a “Overweight”. 6 of the analysts rate the stock as a “Buy”. 0 analysts have rated the stock as a Sell or Underperform.

TransAlta Corporation is expected to release its quarterly report on 08/06/2020 and quarterly earnings per share for the current quarter are estimated at $0 with sales reaching $506.52M over the same period.The EPS is expected to grow by 121.30% this year, but quarterly earnings will post -1.20% year-over-year. Quarterly sales are estimated to shrink -13.30% in year-over-year returns.

TransAlta Corporation (TAC) Top Institutional Holders

148 institutions hold shares in TransAlta Corporation (TAC), with 703.03k shares held by insiders accounting for 0.25% while institutional investors hold 71.36% of the company’s shares. The shares outstanding are 277.00M, and float is at 275.04M with Short Float at 0.15%. Institutions hold 71.17% of the Float.

The top institutional shareholder in the company is Royal Bank of Canada with over 43.99 million shares valued at $230.53 million. The investor’s holdings represent 15.95% of the TAC Shares outstanding. As of Mar 30, 2020, the second largest holder is Brookfield Asset Management Inc. with 30.39 million shares valued at $159.24 million to account for 11.02% of the shares outstanding. The other top investors are Bank of Montreal/Can/ which holds 13.85 million shares representing 5.02% and valued at over $72.57 million, while CIBC Asset Management Inc. holds 4.29% of the shares totaling 11.83 million with a market value of $62.01 million.

TransAlta Corporation (TAC): Who are the competitors?

The company’s main competitors (and peers) include Suncor Energy Inc. (SU) that is -47.57% lower over the past 12 months. Short interest in the company’s stock has risen 38.39% from the last report on May 14, 2020 to stand at a total of 0.58 million short shares sold with a short interest ratio of 3.43.