TransAlta Corporation (NYSE:TAC) Shares Jump on Upgrade & Utility Optimism


It’s been an exciting two weeks for the market following President-elect, Donald Trump’s victory back on the 8th of November. While many stocks have been rising, one particular stock which has stood out from the rest is TransAlta Corporation (NYSE:TAC).  Shares of TAC have jumped more than 24% today, following multiple tidbits of good news.  Additionally, the stock saw volume which was approximately 700% of what one would normally expect on a typical trading day, so interest is certainly high.

First and foremost, the company’s stock has been upgraded by BMO Capital Markets to a price target of $7.50 per share.  This is compared to the previous target of $6.50 per share prior to today’s announcement.  It also represents a possible gain of 40% from where the stock closed this afternoon.  It will be interesting to see if other analysts will be upgrading their target prices as well as we head into December.

Second on the menu of good news for TransAlta Corporation shares is the overall positive sentiment within the Utilities sector as of late.  With Trump expected to take the oath of office on January 20th of next year, there is an expected boost to traditional energy companies as opposed to new green energy.  Combined with the upgrade received today, TransAlta Corporation shares apparently look appealing to many investors.

Shares of TransAlta Corporation opened the day up $0.70, and continued to gain throughout the trading day, hitting a peak of $5.40 of up $1.10 prior to pulling back slightly at the close to $5.30.  This represented a $1 price per share gain over Wednesday’s close.  The stock is trading fairly close to its 52-week high of $5.62 and is well off of the 52-week low of $2.54, seen back in mid January of this year.  It will be interesting to see how the stock opens on Monday morning and if the influx of volume will continue.