CIBC World Markets Downgrades TransAlta to Hold Rating

TransAlta (TSE:TA - Get Free Report) has received a downgrade from CIBC World Markets, which has lowered its rating from "strong-buy" to "hold," according to a report released on Wednesday by Zacks.com.

Several other analysts have recently shared their insights regarding TransAlta's performance. CIBC has changed its rating from "outperform" to "neutral" and increased its target price from C$17.00 to C$23.00. This adjustment reflects a more cautious approach towards the stock's potential.

On December 18th, Desjardins also raised its price objective for TransAlta, adjusting it from C$15.50 to C$16.00 while maintaining a "hold" rating. Similarly, Royal Bank of Canada increased its target price from C$14.00 to C$16.00 earlier in November, signaling a growing interest in the stock's future valuation.

BMO Capital Markets made a noteworthy adjustment as well, increasing their target for TransAlta from C$17.00 to C$22.00 in a report published on December 16th. Meanwhile, TD Securities also raised their price objective from C$16.00 to C$18.00, classifying the stock as a "buy" in November.

Currently, among analysts, three have rated TransAlta with a hold, four have given it a buy rating, and one analyst expresses a strong buy sentiment. According to MarketBeat, the stock has an average consensus rating of “Moderate Buy” alongside a price target averaging C$18.33.

TransAlta Price Performance

On Wednesday, TSE:TA opened at C$19.12. The company's 50-day moving average is C$17.45, while the 200-day moving average stands at C$13.74. Over the past year, TransAlta has recorded a 12-month low of C$8.22 and a high of C$20.98. The company boasts a market capitalization of C$5.70 billion, a price-to-earnings (P/E) ratio of 10.06, a P/E/G ratio of -0.07, and a beta of 0.93. Other financial metrics include a current ratio of 0.84, a quick ratio of 0.62, and an elevated debt-to-equity ratio of 219.87.

Insider Trading Activities

In the context of insider trading, senior officer Jane Nyla Fedoretz sold 25,000 shares of the company in a transaction executed on November 21st, realizing an average price of C$15.11, amounting to a total of C$377,750. Another director, John Harry Kousinioris, sold 45,000 shares on December 5th at an average price of C$17.67, totaling C$795,150. Overall, insiders have sold 204,763 shares valued at C$3,478,670 over the past three months, equating to 0.21% ownership of the company’s stock.

About TransAlta

TransAlta Corporation is engaged in developing, producing, and selling electric energy across various segments, including Hydro, Wind and Solar, Gas, Energy Transition, and Energy Marketing. Within the Hydro segment, the company holds interests in about 922 megawatts (MW) of hydroelectric generating capacity across Alberta, British Columbia, and Ontario.

TransAlta, CIBC, downgrade