National Bank Financial Predicts TransAlta Q4 Earnings

National Bank Financial recently shared its predictions regarding the Q4 2024 earnings for TransAlta Corporation (NYSE:TAC, TSE:TA). In a report released on January 28th, analyst P. Kenny estimated that TransAlta will achieve earnings per share (EPS) of $0.05 for the quarter. This prediction stands in contrast to the broader market consensus, which anticipates full-year earnings of $0.54 per share for the utilities provider.

Additionally, several other financial analysts have offered their insights on TransAlta's stock performance. For instance, Desjardins has reiterated a “hold” rating for TransAlta shares as of November 6th. Scotiabank adjusted its rating from “sector outperform” to “sector perform” on January 23rd. In contrast, StockNews.com has upgraded the rating from “hold” to “buy.” Meanwhile, CIBC revised its rating from “sector outperform” to “neutral” around the same time. Cibc World Mkts also downgraded the stock from a “strong-buy” to a “hold” rating. Overall, the stock is currently rated with a consensus of “Hold” from four analysts, with one showing a buy inclination, based on data from MarketBeat.com.

TransAlta Stock Overview

TransAlta’s share price opened at $11.51 recently. The company has a quick ratio of 0.67 and a current ratio of 0.74, indicating its liquidity position. Its debt-to-equity ratio is at 2.94, suggesting a higher reliance on debt financing. Notably, the company's shares have fluctuated, bearing a 52-week low of $5.94 and a high of $14.64. The 50-day and 200-day moving averages stand at $13.07 and $10.64, respectively. The market capitalization is around $3.42 billion, with a price-to-earnings (P/E) ratio of 31.10 and a beta value of 0.84, indicating moderate volatility compared to the broader market.

Dividend Changes

In recent news, TransAlta announced a cut in its quarterly dividend. The revised dividend will amount to $0.0423 per share, payable on April 1st to shareholders recorded by March 1st. The ex-dividend date is scheduled for February 28th. This results in an annualized dividend of $0.17, yielding approximately 1.47%. The payout ratio presently stands at 43.24%.

Institutional Investment Activity

Recent activity among institutional investors has been noteworthy. Rubric Capital Management LP raised its stake in TransAlta by 20% during the third quarter, accumulating a total of 5,622,961 shares valued at about $58.25 million. FMR LLC also increased its position by 9.8%, holding 4,593,023 shares worth $47.61 million. Furthermore, Yaupon Capital Management LP expanded its holdings by a significant 69.9%. Point72 Asset Management L.P. and The Manufacturers Life Insurance Company also raised their stakes by 37.8% and 22.3%, respectively. Importantly, institutional investors and hedge funds account for 59% of TransAlta’s shares.

Company Summary

TransAlta Corporation is primarily engaged in developing, producing, and marketing electric energy. It operates through various segments, including Hydro, Wind and Solar, Gas, Energy Transition, and Energy Marketing. The Hydro segment alone has an ownership interest of around 922 megawatts (MW) of hydroelectric capacity across regions like Alberta, British Columbia, and Ontario.

TransAlta, Earnings, Investments