TransAlta (TSE:TA) Reaches New 52-Week High Following Analyst Upgrade

TransAlta Co. (TSE:TA - Get Free Report) experienced a notable increase in its share price on Monday, achieving a new 52-week high after significant changes in analyst ratings. BMO Capital Markets raised its price target for the stock from C$17.00 to C$22.00. During trading, the stock reached a peak of C$19.77 before closing at C$19.76, with a total trading volume of 642,251 shares, compared to its previous close of C$19.09.

Several other analysts have also been active in updating their recommendations for TransAlta. National Bankshares raised its price objective from C$14.00 to C$15.00 and assigned an "outperform" rating in an analysis released on August 23rd. TD Securities followed suit by increasing its target from C$16.00 to C$18.00 and rated the stock as a "buy" in a report on November 6th. Meanwhile, Desjardins downgraded TransAlta's rating from "moderate buy" to "hold" on November 5th. Royal Bank of Canada also placed a higher price target on the stock, lifting it from C$14.00 to C$16.00 on the same day as TD Securities' report. Scotiabank subsequently raised its recommendation to a "strong-buy" on December 5th. As it stands, one analyst has rated the stock as a hold, five have given it a buy rating, and one offers a strong buy rating, leading to a consensus rating of "Buy" based on MarketBeat, with an average target price of C$17.00.

Insider Activities

In related news, a few insiders engaged in stock sales recently. Senior Officer Jane Nyla Fedoretz sold 3,602 shares on December 11th at an average price of C$18.84, yielding a total of C$67,861.68. Director John Harry Kousinioris sold 45,000 shares on December 5th, with an average sale price of C$17.67, totaling C$795,150.00. Over the last three months, insiders have sold a combined 179,584 shares valued at $2,833,709, with insiders currently holding 0.21% of the stock.

Stock Performance and Market Metrics

TransAlta's stock has risen by 3.9% recently. The company boasts a market capitalization of C$5.91 billion, with a price-to-earnings (P/E) ratio of 10.25 and a price-to-earnings growth (PEG) ratio of -0.07. The stock's beta is 0.93, indicating lower volatility relative to the market. Its recent 50-day moving average stands at C$15.12, while the 200-day moving average is at C$12.35. Additionally, the company's debt-to-equity ratio is high at 219.87, while its current and quick ratios are 0.84 and 0.62, respectively.

Dividend Information

TransAlta has recently announced its quarterly dividend, scheduled to be paid on January 1st. Shareholders on record as of December 1st will receive a dividend of $0.06 per share, leading to an annualized dividend of $0.24, which gives a yield of 1.21%. The ex-dividend date will be November 29th, and the company's dividend payout ratio is currently at 12.63%.

Overview of TransAlta

TransAlta Corporation focuses on the development, production, and sale of electric energy. The company operates through various sectors, including Hydro, Wind and Solar, Gas, Energy Transition, and Energy Marketing. Their Hydro segment features around 922 megawatts (MW) of owned hydroelectric generating capacity spread across Alberta, British Columbia, and Ontario.

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