CIBC World Markets Downgrades TransAlta's Rating to Hold

TransAlta (TSE:TA) has experienced a change in its stock rating from CIBC World Markets. On Wednesday, CIBC updated its evaluation of the company, downgrading it from a "strong-buy" rating to a "hold" rating as stated in a research report.

Several other research analysts have also recently shared their insights on TransAlta. For instance, CIBC has decreased its rating from "outperform" to "neutral," while raising their target price for the company from C$17.00 to C$23.00 in a report published the same day. Desjardins analysts raised their price target for TransAlta shares from C$15.50 to C$16.00, maintaining a "hold" rating in a report issued on December 18th. On the other hand, Royal Bank of Canada increased its target price from C$14.00 to C$16.00 in a report released on November 6th. BMO Capital Markets also raised its price target from C$17.00 to C$22.00 shortly before on December 16th. Meanwhile, TD Securities increased their target price from C$16.00 to C$18.00, designating the stock with a "buy" rating in a separate note on November 6th.

A total of three analysts currently have a "hold" rating on the stock, while four others have issued a "buy" rating, and one has provided a "strong-buy" designation. MarketBeat reports that TransAlta enjoys a consensus rating of "Moderate Buy" and has an average price target set at C$18.33.

Analysis of TransAlta's Stock Performance

On Wednesday, TransAlta shares opened at C$19.12. The company has a 50-day moving average of C$17.45 and a 200-day moving average of C$13.74. Over the past year, TransAlta’s stock has traded as low as C$8.22 and as high as C$20.98. The firm's market capitalization stands at C$5.70 billion, with a price-to-earnings (P/E) ratio of 10.06 and a P/E to growth (P/E/G) ratio of -0.07. Its beta is reported at 0.93. Additionally, the company has a current ratio of 0.84, a quick ratio of 0.62, and a notably high debt-to-equity ratio of 219.87.

Recent Insider Trading Activity

In terms of insider trading, Senior Officer Jane Nyla Fedoretz sold 25,000 shares on November 21st, realizing an average sale price of C$15.11, totaling approximately C$377,750. Additionally, Director John Harry Kousinioris sold 45,000 shares on December 5th, with an average price of C$17.67 for total proceeds of roughly C$795,150. In the last three months, a total of 204,763 shares of company stock have been sold by insiders, amounting to a value of about C$3,478,670. Presently, insiders hold about 0.21% of TransAlta’s stock.

About TransAlta Corporation

TransAlta Corporation is involved in the development, production, and sale of electric energy. It operates through various segments including Hydro, Wind and Solar, Gas, Energy Transition, and Energy Marketing. The Hydro segment alone accounts for approximately 922 megawatts (MW) of hydroelectric generating capacity distributed across Alberta, British Columbia, and Ontario.

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