TransAlta Stock Soars 10.62% on Dividend Hike, Short Interest Surge

On April 15, 2025, TransAlta's stock surged by 10.62% in pre-market trading, marking a significant rise that has caught the attention of investors and analysts alike.

One of the key factors contributing to the recent surge in TransAlta's stock price is the increase in short interest. As of February 15th, the short interest totaled 10,040,000 shares, representing a 20.2% increase from the previous month's total of 8,350,000 shares. This rise in short interest suggests that there is growing speculation and potential for volatility in the stock.

Additionally, TransAlta's dividend policy has also played a role in the stock's performance. The company recently increased its quarterly dividend, which has been well-received by investors seeking stable income. This move is part of TransAlta's strategy to attract and retain shareholders by offering competitive dividends.

Analysts have also weighed in on TransAlta's prospects, with some raising their price targets for the stock. For instance, National Bank Financial analyst Patrick Kenny increased the price target on TransAlta to Cdn$20, reflecting a positive outlook on the company's future performance. This upward revision in price targets has likely contributed to the recent bullish sentiment surrounding the stock.

However, not all analysts are bullish on TransAlta. Some have lowered their target prices, citing concerns about the company's management and industry subrating. For example, one analyst lowered the target price to $9.00, indicating a more cautious stance on the stock's potential upside. Despite these differing opinions, the overall sentiment remains positive, with many analysts maintaining a "Buy" rating on the stock.