Zacks Investment Research Lowers TransUnion (TRU) to Hold
TransUnion (NYSE:TRU) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday.
According to Zacks, “TransUnion is poised for impressive growth in several of its end markets, especially the burgeoning Big Data and analytics market, 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 higher consumer awareness about the usage of credit information are propelling the demand for its consumer solutions. The company has further increased its guidance on favorable growth dynamics. TransUnion has also outperformed the industry year to date. However, the company is vulnerable to the overall macroeconomic conditions, industry trends and adverse foreign currency translation effects, which limit its profitability to some extent. The high degree of competition also restricts its pricing power and puts a strain on the bottom line. In addition, TransUnion’s performance is affected by various seasonality issues.”
Several other analysts have also weighed in on TRU. BidaskClub raised TransUnion from a “buy” rating to a “strong-buy” rating in a report on Monday, August 14th. SunTrust Banks, Inc. began coverage on TransUnion in a report on Tuesday. They issued a “buy” rating and a $54.00 price objective for the company. Cowen and Company reissued a “buy” rating and issued a $48.00 price objective on shares of TransUnion in a report on Friday, July 28th. Barclays PLC reissued an “overweight” rating and issued a $48.00 price objective (up from $45.00) on shares of TransUnion in a report on Friday, June 16th. Finally, Morgan Stanley reissued an “overweight” rating and issued a $50.00 price objective (up from $47.00) on shares of TransUnion in a report on Wednesday, July 26th. Two analysts have rated the stock with a hold rating, seven have given a buy rating and one has given a strong buy rating to the company. The stock has a consensus rating of “Buy” and a consensus price target of $47.78.
Shares of TransUnion (TRU) traded up 0.94% during mid-day trading on Wednesday, hitting $48.34. The company had a trading volume of 582,132 shares. The stock’s 50-day moving average is $46.29 and its 200-day moving average is $42.06. The stock has a market cap of $8.79 billion, a price-to-earnings ratio of 41.60 and a beta of 0.60. TransUnion has a 52-week low of $28.92 and a 52-week high of $48.34.
TransUnion (NYSE:TRU) last announced its quarterly earnings data on Tuesday, July 25th. The business services provider reported $0.47 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.44 by $0.03. The firm had revenue of $474.80 million during the quarter, compared to analyst estimates of $464.77 million. TransUnion had a return on equity of 20.32% and a net margin of 12.08%. TransUnion’s quarterly revenue was up 11.5% on a year-over-year basis. During the same period in the previous year, the company earned $0.37 earnings per share. Equities analysts forecast that TransUnion will post $1.83 earnings per share for the current year.
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In other TransUnion news, CAO Timothy Elberfeld sold 902 shares of TransUnion stock in a transaction that occurred on Friday, July 28th. The stock was sold at an average price of $45.43, for a total value of $40,977.86. Following the completion of the transaction, the chief accounting officer now directly owns 15,423 shares in the company, valued at $700,666.89. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider James M. Peck sold 39,229 shares of TransUnion stock in a transaction that occurred on Friday, September 1st. The shares were sold at an average price of $47.83, for a total value of $1,876,323.07. Following the completion of the transaction, the insider now owns 202,343 shares of the company’s stock, valued at $9,678,065.69. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 14,086,719 shares of company stock valued at $642,437,522. 2.10% of the stock is currently owned by insiders.
A number of hedge funds have recently modified their holdings of TRU. Teachers Advisors LLC boosted its stake in TransUnion by 34.3% in the fourth quarter. Teachers Advisors LLC now owns 62,022 shares of the business services provider’s stock valued at $1,918,000 after acquiring an additional 15,845 shares during the period. Bank of Montreal Can boosted its stake in TransUnion by 724.5% in the first quarter. Bank of Montreal Can now owns 61,834 shares of the business services provider’s stock valued at $2,372,000 after acquiring an additional 54,334 shares during the period. Nationwide Fund Advisors boosted its stake in TransUnion by 2.8% in the first quarter. Nationwide Fund Advisors now owns 216,338 shares of the business services provider’s stock valued at $8,297,000 after acquiring an additional 5,796 shares during the period. Great West Life Assurance Co. Can boosted its stake in TransUnion by 37.3% in the first quarter. Great West Life Assurance Co. Can now owns 11,789 shares of the business services provider’s stock valued at $451,000 after acquiring an additional 3,200 shares during the period. Finally, Sumitomo Mitsui Trust Holdings Inc. boosted its stake in TransUnion by 68.6% in the first quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 11,800 shares of the business services provider’s stock valued at $453,000 after acquiring an additional 4,800 shares during the period.
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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