TransAlta Corporation (TAC): Why its showing bear behavior?

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TransAlta Corporation (NYSE:TAC) changes shares on Tuesday trading session, with a change of -0.66% or -$0.04 shares. The trading starts at $6.09 and closed at $6.02 throughout the day. The trading session low price was $5.96 and day high was $6.13 on Tuesday, June 23. After the session, the Utilities sector daily volume shifted to 0.11 million while its average volume is 437.89K. In other hand, the TAC market cap reached to $1.65B. While, its current target price is $5.98 according to WSJ.

Checking out the performance report which defines the increase or decrease of prices for a specific period. For the last 5 trading sessions, its performance is down -1.48% and up 6.98% for month. Its quarterly performance was 44.79% above, while its half year performance is down -14.33%. TAC yearly performance stood at negative -6.71% and fall -16.48% for year-to-date. Current recommendation for TransAlta Corporation is 3.00.

Earnings per share or EPS is an important financial measure, which defines the profitability of a company. TAC EPS (TTM) for 12-month is 0.38. EPS for this year is 121.30%, while for the next year its value is -0.46. Sales growth for the current quarter is 0.70 while its EPS Q/Q reached 142.70%. It has an EPS of 16.30% up for past five years and for the next five years will be up 22.67%.

Let’s take a look on the analyst recommendations on TAC for the current month and previous month. For the current month, 6 of 10 analysts recommend stock as Buy while 0 as Sell, 0 as overweight, 0 as underweight and 4 as Hold. As compared with the previous month ratings, 0 analysts participate in stock recommendation. Out of 0, 0 rated it sell, 0 rated it as Buy and 0 as Hold Ratings. On the other hand, target price ranges from $5.00-$8.55. Average target price for TAC was reached at $7.21.

Royal Bank of Canada, Brookfield Asset Management Inc. and Bank of Montreal/Can/ are the top three holders in TransAlta Corporation (TAC) stock. On Mar 30, 2020, Royal Bank of Canada has 43.99 million shares which valued 230.53 million. On Mar 30, 2020, Brookfield Asset Management Inc. owned 30.39 million shares which valued at 159.24 million. On Mar 30, 2020, Bank of Montreal/Can/ has a total of 13.85 million shares which valued at 72.57 million. In the end, Bank of Montreal/Can/ have 5.02% shares outstanding of TransAlta Corporation (TAC) on Mar 30, 2020. The insider ownership moved to 0.30% and institutional holding shifted to 61.70%.

The company posted an EPS (TTM) of 0.38. Analyst Estimated EPS for TAC published in the report was -0.06-0.05 during the same period. Comparing with last year, the average estimated EPS was 0.15 which is higher than -0.07 which was posted for recent quarter EPS.

A brief look on simple moving average (SMA) that determines the market price can impact a market. The SMA for TAC fall -6.11% for period of 200 days. SMA for 50 days was 3.10% which is showing green signal, while SMA-20 was -1.39%. The moving average value for TransAlta Corporation (TAC) is 6.36 and 5.88 for 200 and 50 days respectively.