TransAlta Corporation (NYSE:TAC) stock identified change of 3.81% away from 52-week low price and recently located move of -48.71% off 52-week high price. It has market worth of $1.51BM and dividend yield of 2.98%. TAC stock has been recorded -39.91% away from 50 day moving average and -34.23% away from 200 day moving average. Moving closer, we can see that shares have been trading -39.08% off 20-day moving average.

On March 17, 2020, TransAlta Corporation (NYSE:TAC) disclosed the acquisition of a contracted cogeneration asset from two private companies for a purchase price of approximately US$27 million, subject to working capital adjustments. The asset is a 29 MW cogeneration facility in Michigan which is contracted under a long-term power purchase agreement and steam sale agreement for approximately six years with high quality counterparties.

The acquisition marks our first U.S. cogeneration project and aligns with our strategy of growing our on-site generation business, diversifying our cogeneration portfolio, and increasing the pipeline of assets for potential future drop-downs into TransAlta Renewables, said Dawn Farrell, President and Chief Executive Officer of TransAlta. The expansion into new geographic markets further enhances our position as a leader in behind the fence generation and provides potential for future opportunities in the U.S. cogeneration space.

The cogeneration facility, which comprises a single GE LM2500 gas turbine and an ABB steam turbine, has been operational since 1991. The electricity and steam output of the facility are fully contracted providing consistent, predictable revenues through 2026.  The acquisition will be funded with cash on hand.

Investment Highlights:

  • Attractive cash-on-cash yield and project return acquisition metrics;
  • Expands TransAlta’s platform in the U.S. and is an entry into the U.S cogeneration space;
  • Potential drop-down candidate to TransAlta Renewables Inc.;
  • Long-term contracted cash flows with high quality counterparties; and
  • Provides further geographic, technology and counterparty diversification.

The Utilities sector company, TransAlta Corporation noticed change of 1.87% to $4.36 along volume of 1586987 shares in recent session compared to an average volume of 593.21K. The stock observed return of -25.34% in 5 days trading activity. The stock was at -46.96% over one month performance. TAC’s shares are at -36.26% for the quarter and driving a -34.53% return over the course of the past year and is now at -39.11% since this point in 2018.

The average volatility for the week at 12.61% and for month was at 6.78%. There are 346.82M shares outstanding and 279.43M shares are floated in market. Right now the stock beta is 1.24.