TransAlta (TAC) Stock Price, News & Analysis

Company Overview

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. The Wind and Solar segment has a net ownership interest of approximately 2,057 MW of owned wind and solar electrical-generating capacity, as well as battery storage facilities located in Alberta, Ontario, New Brunswick, and Québec in Canada; the states of Massachusetts, Minnesota, New Hampshire, North Carolina, Pennsylvania, Washington, and Wyoming in the United States; and the state of Western Australia. The Gas segment has a net ownership interest of approximately 2,775 MW of owned gas electrical-generating capacity, and facilities located in Alberta, Ontario, Michigan, and the state of Western Australia. The Energy Transition segment has a net ownership interest of approximately 671 MW of owned coal electrical-generating capacity, as well as operates the Skookumchuck hydro facility in Centralia; and engages in the highvale mine and the mine reclamation activities. The Energy Marketing segment is involved in the trading of power, natural gas, and environmental products. It serves customers in various industry segments, including commercial real estate, municipal, manufacturing, industrial, hospitality, finance, and oil and gas. TransAlta Corporation was founded in 1909 and is headquartered in Calgary, Canada.

Key Stats

• Today's Range: $10.87 to $11.65
• 50-Day Range: $10.40 to $14.46
• 52-Week Range: $5.94 to $14.64
• Volume: 5.54 million shs
• Average Volume: 2.13 million shs
• Market Capitalization: $3.24 billion
• P/E Ratio: 26.53
• Dividend Yield: 1.66%
• Price Target: $19.50
• Consensus Rating: Moderate Buy

TransAlta Stock Analysis - MarketRank™

TransAlta scored higher than 71% of companies evaluated by MarketBeat, and ranked 54th out of 92 stocks in the utilities sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 3.3 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

TransAlta has received a consensus rating of Moderate Buy. The company's average rating score is 2.67, and is based on no buy ratings, 2 hold ratings, and no sell ratings.

Amount of Analyst Coverage

TransAlta has only been the subject of 3 research reports in the past 90 days.

Earnings and Valuation

• Score: 1.3 / 5
• Proj. Earnings Growth: 7.32%

Earnings Growth

Earnings for TransAlta are expected to grow by 7.32% in the coming year, from $0.41 to $0.44 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of TransAlta is 26.53, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 21.79.

Price to Earnings Ratio vs. Sector

The P/E ratio of TransAlta is 26.53, which means that it is trading at a more expensive P/E ratio than the Utilities sector average P/E ratio of about 13.25.

Price to Book Value per Share Ratio

TransAlta has a P/B Ratio of 6.29. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

Short Interest

• Score: 2.0 / 5
• Short Interest Level: Bearish

Percentage of Shares Shorted

2.82% of the float of TransAlta has been sold short.

Short Interest Ratio / Days to Cover

TransAlta has a short interest ratio ("days to cover") of 5.5.

Change versus previous month

Short interest in TransAlta has recently increased by 13.45%, indicating that investor sentiment is decreasing significantly.

Dividend

• Score: 2.5 / 5
• Dividend Strength: Moderate

Dividend Yield

TransAlta pays a meaningful dividend of 1.64%, higher than the bottom 25% of all stocks that pay dividends.

Dividend Growth

TransAlta does not have a long track record of dividend growth.

Dividend Coverage

The dividend payout ratio of TransAlta is 43.90%. This payout ratio is at a healthy, sustainable level, below 75%.

Dividend Sustainability

Based on earnings estimates, TransAlta will have a dividend payout ratio of 40.91% next year. This indicates that TransAlta will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

2.82% of the float of TransAlta has been sold short.

Short Interest Ratio / Days to Cover

TransAlta has a short interest ratio ("days to cover") of 5.5.

Change versus previous month

Short interest in TransAlta has recently increased by 13.45%, indicating that investor sentiment is decreasing significantly.

News and Social Media

• Score: 3.2 / 5
• News Sentiment: 0.71

News Sentiment

TransAlta has a news sentiment score of 0.71. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This news sentiment score is similar to the average news sentiment of Utilities companies.

News Coverage This Week

MarketBeat has tracked 16 news articles for TransAlta this week, compared to 3 articles on an average week.

Search Interest

3 people have searched for TAC on MarketBeat in the last 30 days. This is an increase of 50% compared to the previous 30 days.

MarketBeat Follows

3 people have added TransAlta to their MarketBeat watchlist in the last 30 days.

Company Ownership

• Score: 1.7 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, TransAlta insiders have not sold or bought any company stock.

Percentage Held by Insiders

13.10% of the stock of TransAlta is held by insiders. A high percentage of insider ownership can be a sign of company health.

Percentage Held by Institutions

59.00% of the stock of TransAlta is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

TAC Stock Analysis - Frequently Asked Questions

How have TAC shares performed this year?

TransAlta's stock was trading at $14.15 at the start of the year. Since then, TAC stock has decreased by 23.1% and is now trading at $10.8750.
View the best growth stocks for 2025 here.

How were TransAlta's earnings last quarter?

TransAlta Co. (NYSE:TAC) issued its earnings results on Thursday, February, 20th. The utilities provider reported ($0.16) EPS for the quarter, missing the consensus estimate of $0.12 by $0.28. The utilities provider earned $484.60 million during the quarter. TransAlta had a net margin of 6.38% and a trailing twelve-month return on equity of 18.47%.

Who are TransAlta's major shareholders?

Top institutional investors of TransAlta include BROOKFIELD Corp ON (11.94%), Vanguard Group Inc. (3.44%), Bank of Montreal Can (3.12%) and FMR LLC (2.77%).
View institutional ownership trends.

How do I buy shares of TransAlta?

Shares of TAC stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.

What other stocks do shareholders of TransAlta own?

Based on aggregate information from My MarketBeat watchlists, some other companies that TransAlta investors own include Meta Platforms (META), NVIDIA (NVDA), Broadcom (AVGO), General Electric (GE), Arista Networks (ANET), Novo Nordisk A/S (NVO) and Advanced Micro Devices (AMD).

Company Calendar

• Ex-Dividend for 1/1 Dividend: 11/29/2024
• Dividend Payable: 1/01/2025
• Last Earnings: 2/20/2025
• Today: 2/21/2025
• Ex-Dividend for 4/1 Dividend: 2/28/2025
• Dividend Payable: 4/01/2025
• Next Earnings (Estimated): 5/02/2025
• Fiscal Year End: 12/31/2025

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Utilities
• Industry: Electric services
• Sub-Industry: Utilities
• Current Symbol: NYSE:TAC
• CUSIP: N/A
• CIK: 1144800
• Web: www.transalta.com
• Phone: (403) 267-7110
• Fax: 1-403-267-7405
• Employees: 1,257
• Year Founded: N/A

Price Target and Rating

• Average Stock Price Target: $19.50
• High Stock Price Target: $19.50
• Low Stock Price Target: $19.50
• Potential Upside/Downside: +79.3%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.67
• Research Coverage: 3 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $0.37
• Trailing P/E Ratio: 29.39
• Forward P/E Ratio: 21.75
• P/E Growth: N/A
• Net Income: $514.86 million
• Net Margins: 5.72%
• Pretax Margin: 11.96%
• Return on Equity: 17.46%
• Return on Assets: 1.84%

Debt

• Debt-to-Equity Ratio: 2.94
• Current Ratio: 0.74
• Quick Ratio: 0.67

Sales & Book Value

• Annual Sales: $2.49 billion
• Price / Sales: 1.30
• Cash Flow: $2.98 per share
• Price / Cash Flow: 3.65
• Book Value: $1.73 per share
• Price / Book: 6.29

Miscellaneous

• Outstanding Shares: 297,580,000
• Free Float: 258,596,000
• Market Cap: $3.24 billion
• Optionable: Optionable
• Beta: 0.83