TransAlta (NYSE:TAC) Trading Down 14.5% - What's Next?

TransAlta Co. (NYSE:TAC - Get Free Report) TSE: TA was down 14.5% on Monday . The stock traded as low as $11.31 and last traded at $11.52. Approximately 679,407 shares changed hands during mid-day trading, a decline of 61% from the average daily volume of 1,741,278 shares. The stock had previously closed at $13.47.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on TAC. StockNews.com lowered TransAlta from a "buy" rating to a "hold" rating in a report on Saturday, January 4th. Desjardins reissued a "hold" rating on shares of TransAlta in a report on Wednesday, November 6th. CIBC downgraded shares of TransAlta from a "sector outperform" rating to a "neutral" rating in a report on Wednesday, January 8th. Scotiabank cut shares of TransAlta from a "sector outperform" rating to a "sector perform" rating in a research note on Thursday, January 23rd. Finally, Cibc World Mkts downgraded TransAlta from a "strong-buy" rating to a "hold" rating in a report on Wednesday, January 8th. Five research analysts have rated the stock with a hold rating, Based on data from MarketBeat.com, TransAlta has an average rating of "Hold".

TransAlta Price Performance

The stock has a market cap of $3.25 billion, a P/E ratio of 29.49 and a beta of 0.84. The company has a debt-to-equity ratio of 2.94, a current ratio of 0.74 and a quick ratio of 0.67. The business's fifty day moving average price is $13.02 and its 200 day moving average price is $10.57.

TransAlta Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, April 1st. Shareholders of record on Saturday, March 1st will be given a $0.0423 dividend. The ex-dividend date is Friday, February 28th. This represents a $0.17 dividend on an annualized basis and a yield of 1.55%. TransAlta's dividend payout ratio is currently 48.65%.

Institutional Investors Weigh In On TransAlta

A number of hedge funds and other institutional investors have recently bought and sold shares of TAC. Rubric Capital Management LP raised its stake in shares of TransAlta by 20.0% during the third quarter. Rubric Capital Management LP now owns 5,622,961 shares of the utilities provider's stock valued at $58,254,000 after acquiring an additional 935,803 shares during the last quarter. FMR LLC increased its holdings in TransAlta by 9.8% in the third quarter. FMR LLC now owns 4,593,023 shares of the utilities provider's stock valued at $47,613,000 after purchasing an additional 408,184 shares during the period. Yaupon Capital Management LP raised its position in TransAlta by 69.9% during the 3rd quarter. Yaupon Capital Management LP now owns 2,685,955 shares of the utilities provider's stock worth $27,840,000 after purchasing an additional 1,105,191 shares during the last quarter. Point72 Asset Management L.P. lifted its holdings in TransAlta by 37.8% during the 3rd quarter. Point72 Asset Management L.P. now owns 1,286,800 shares of the utilities provider's stock worth $13,343,000 after buying an additional 352,860 shares during the period. Finally, The Manufacturers Life Insurance Company grew its position in shares of TransAlta by 22.3% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 929,631 shares of the utilities provider's stock valued at $6,582,000 after buying an additional 169,219 shares during the last quarter. Institutional investors own 59.00% of the company's stock.

TransAlta Company Profile

TransAlta Corporation engages in the development, production, and sale of electric energy. It operates through Hydro, Wind and Solar, Gas, Energy Transition, and Energy Marketing segments. The Hydro segment holds interest of approximately 922 megawatts (MW) of owned hydroelectric generating capacity located in Alberta, British Columbia, and Ontario.