TransUnion (TRU) Cut to Hold at Zacks Investment Research
Zacks Investment Research downgraded shares of TransUnion (NYSE:TRU) from a buy rating to a hold rating in a research note released on Thursday.
According to Zacks, “TransUnion is poised for impressive growth in several of its end markets with an attractive business model, significant operating leverage, low capital requirements and strong and stable cash flows. Increased risk of identity theft due to data breaches and high consumer awareness about the usage of credit information are further propelling demand. As emerging market economies continue to develop and mature, the company is well-positioned to gain from the associated favorable socio-economic trends. The company also outperformed the industry in the last three months. However, TransUnion operates in a highly competitive market, which restricts its pricing power and limits profitability to some extent. The company’s revenues are significantly affected by industry trends like demand for information services in insurance, financial services and healthcare industry. TransUnion’s performance is also affected by seasonality issues.”
A number of other analysts have also recently weighed in on the stock. Royal Bank of Canada reaffirmed a buy rating and set a $57.00 price target on shares of TransUnion in a research report on Friday, October 27th. Barclays reaffirmed an overweight rating and set a $50.00 price target (up from $48.00) on shares of TransUnion in a research report on Thursday, September 14th. JPMorgan Chase & Co. upped their price target on shares of TransUnion from $54.00 to $60.00 and gave the stock an overweight rating in a research report on Monday, October 30th. Atlantic Securities raised shares of TransUnion from a neutral rating to an overweight rating in a research report on Friday, November 17th. Finally, Cowen reaffirmed a buy rating and set a $48.00 price target on shares of TransUnion in a research report on Thursday, October 12th. One investment analyst has rated the stock with a hold rating, ten have issued a buy rating and one has assigned a strong buy rating to the company’s stock. The stock presently has an average rating of Buy and an average price target of $57.55.
Shares of TransUnion (NYSE:TRU) traded down $0.09 during trading on Thursday, reaching $57.05. 869,105 shares of the company were exchanged, compared to its average volume of 890,775. The company has a current ratio of 1.84, a quick ratio of 1.84 and a debt-to-equity ratio of 1.51. TransUnion has a 12-month low of $31.35 and a 12-month high of $57.38. The stock has a market cap of $10,405.24, a PE ratio of 33.76, a price-to-earnings-growth ratio of 2.94 and a beta of 0.64.
TransUnion (NYSE:TRU) last announced its quarterly earnings results on Friday, October 27th. The business services provider reported $0.49 earnings per share for the quarter, topping analysts’ consensus estimates of $0.43 by $0.06. TransUnion had a net margin of 13.17% and a return on equity of 21.37%. The firm had revenue of $498.00 million during the quarter, compared to analysts’ expectations of $475.52 million. During the same period in the prior year, the company earned $0.38 EPS. The firm’s revenue was up 13.8% on a year-over-year basis. analysts predict that TransUnion will post 1.71 earnings per share for the current year.
In other news, major shareholder Goldman Sachs Group Inc sold 3,698,137 shares of the company’s stock in a transaction dated Thursday, November 2nd. The shares were sold at an average price of $52.25, for a total value of $193,227,658.25. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider James M. Peck sold 18,864 shares of the company’s stock in a transaction dated Friday, October 27th. The shares were sold at an average price of $52.41, for a total transaction of $988,662.24. Following the completion of the sale, the insider now owns 239,313 shares in the company, valued at approximately $12,542,394.33. The disclosure for this sale can be found here. Over the last three months, insiders sold 4,630,224 shares of company stock valued at $243,986,497. 2.10% of the stock is currently owned by corporate insiders.
Several institutional investors have recently modified their holdings of the company. The Manufacturers Life Insurance Company raised its stake in shares of TransUnion by 8.0% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 5,482 shares of the business services provider’s stock valued at $238,000 after purchasing an additional 404 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank raised its stake in shares of TransUnion by 17.0% in the 2nd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 4,780 shares of the business services provider’s stock valued at $207,000 after purchasing an additional 694 shares in the last quarter. Prudential Financial Inc. raised its stake in shares of TransUnion by 12.5% in the 2nd quarter. Prudential Financial Inc. now owns 10,690 shares of the business services provider’s stock valued at $463,000 after purchasing an additional 1,190 shares in the last quarter. Teacher Retirement System of Texas raised its stake in shares of TransUnion by 26.7% in the 3rd quarter. Teacher Retirement System of Texas now owns 12,739 shares of the business services provider’s stock valued at $602,000 after purchasing an additional 2,681 shares in the last quarter. Finally, Great West Life Assurance Co. Can raised its stake in shares of TransUnion by 20.4% in the 3rd quarter. Great West Life Assurance Co. Can now owns 16,814 shares of the business services provider’s stock valued at $800,000 after purchasing an additional 2,853 shares in the last quarter.
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TransUnion is a risk and information solutions provider to businesses and consumers. The Company provides consumer reports, risk scores, analytical services and decision capabilities to businesses. The Company operates through three segments: U.S. Information Services (USIS), International and Consumer Interactive.
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