National Bank Financial Predicts TransAlta Q4 Earnings

On February 2, 2025, analysts from National Bank Financial released their projections for TransAlta Corporation's fourth-quarter earnings for 2024. According to their research report, analyst P. Kenny estimates that TransAlta will report earnings per share (EPS) of $0.05 for the upcoming quarter. This estimate aligns with the current consensus for the full year, which anticipates average earnings of $0.54 per share for the company.

In addition to National Bank Financial, other financial institutions have also made their assessments regarding TransAlta's performance. Desjardins recently reiterated a “hold” rating on the company’s shares on November 6, 2024. Meanwhile, Scotiabank adjusted its rating from “sector outperform” to “sector perform” in a report issued on January 23, 2025. StockNews.com elevated TransAlta's shares from a “hold” rating to a “buy” rating in their review on January 26, and CIBC modified its rating from “sector outperform” to a “neutral” rating as reported on January 8. Cibc World Mkts similarly downgraded TransAlta's rating from “strong-buy” to “hold” around the same time. Currently, four analysts have issued a hold rating, while one has designated a buy rating, leading to a consensus rating of “Hold” according to data from MarketBeat.com.

TransAlta's Stock and Performance

TransAlta's shares (NYSE:TAC) opened at $11.51 on February 2, 2025. The company recorded a quick ratio of 0.67 and a current ratio of 0.74, with a debt-to-equity ratio of 2.94. Over the past year, TransAlta's stock has fluctuated between a low of $5.94 and a high of $14.64. The stock is currently trading near its 50-day moving average price of $13.07 and the two-hundred day moving average price of $10.64, with a market capitalization of approximately $3.42 billion and a PE ratio of 31.10, indicating limited volatility with a beta of 0.84.

Dividend Announcement

TransAlta has also recently declared a quarterly dividend. Shareholders registered by March 1, 2025, will receive a dividend of $0.0423, scheduled for payout on April 1, 2025. The ex-dividend date is set for February 28, 2025. This signifies an annualized dividend of $0.17, resulting in a yield of 1.47%. As it stands, TransAlta's dividend payout ratio is approximately 43.24%.

Institutional Trading Activity

Several institutional investors and hedge funds have recently adjusted their stakes in TransAlta. Rubric Capital Management LP increased its holdings by 20.0% during the third quarter, now owning 5,622,961 shares valued at around $58.25 million. FMR LLC raised its position by 9.8%, which now stands at 4,593,023 shares, valued at $47.61 million. Similarly, Yaupon Capital Management LP saw a 69.9% increase in its shares, acquiring an additional 1,105,191 shares to reach a total of 2,685,955 shares, worth about $27.84 million. Point72 Asset Management L.P. increased its stake by 37.8%, holding 1,286,800 shares valued at approximately $13.34 million. The Manufacturers Life Insurance Company also boosted its position by 22.3% during the second quarter, now owning 929,631 shares worth around $6.58 million. Notably, institutional investors and hedge funds hold about 59.00% of the company's stock.

About TransAlta Corporation

TransAlta Corporation is actively engaged in the development, production, and sale of electric energy. The company operates through several segments: Hydro, Wind and Solar, Gas, Energy Transition, and Energy Marketing. The Hydro segment alone boasts about 922 megawatts (MW) of hydroelectric generating capacity located in Alberta, British Columbia, and Ontario, highlighting its diversification within the energy sector.

Earnings, Stocks, Performance