TransAlta (NYSE:TAC) Shares Down 14.5% - Here's What Happened

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

Analysts Set New Price Targets

A number of research analysts have weighed in on the company. StockNews.com downgraded TransAlta from a "buy" rating to a "hold" rating in a report on Saturday, January 4th. CIBC downgraded shares of TransAlta from a "sector outperform" rating to a "neutral" rating in a research report on Wednesday, January 8th. Scotiabank downgraded shares of TransAlta from a "sector outperform" rating to a "sector perform" rating in a research report on Thursday. Desjardins reaffirmed a "hold" rating on shares of TransAlta in a report on Wednesday, November 6th. Finally, Cibc World Mkts cut TransAlta from a "strong-buy" rating to a "hold" rating in a report on Wednesday, January 8th. Five analysts have rated the stock with a hold rating, According to MarketBeat.com, the stock currently has a consensus rating of "Hold".

TransAlta Stock Performance

The company has a market cap of $3.18 billion, a P/E ratio of 28.91 and a beta of 0.84. The business's 50 day simple moving average is $13.01 and its 200 day simple moving average is $10.53. The company has a current ratio of 0.74, a quick ratio of 0.67 and a debt-to-equity ratio of 2.94.

TransAlta Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 1st. Stockholders of record on Saturday, March 1st will be given a dividend of $0.0423 per share. The ex-dividend date of this dividend is Friday, February 28th. This represents a $0.17 annualized dividend and a dividend yield of 1.58%. TransAlta's payout ratio is 48.65%.

Institutional Investors Weigh In On TransAlta

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Rubric Capital Management LP raised its holdings in 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 period. FMR LLC raised its stake in TransAlta by 9.8% during the 3rd 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 shares of TransAlta by 69.9% during the third quarter. Yaupon Capital Management LP now owns 2,685,955 shares of the utilities provider's stock valued at $27,840,000 after buying an additional 1,105,191 shares during the last quarter. Point72 Asset Management L.P. raised its position in shares of TransAlta by 37.8% during the third quarter. Point72 Asset Management L.P. now owns 1,286,800 shares of the utilities provider's stock valued at $13,343,000 after buying an additional 352,860 shares during the last quarter. Finally, The Manufacturers Life Insurance Company raised its position in shares of TransAlta by 22.3% during the second 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. 59.00% of the stock is owned by institutional investors.

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.