TransUnion (TRU) Rating Increased to Buy at Zacks Investment Research
TransUnion (NYSE:TRU) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Friday. The firm currently has a $62.00 price objective on the business services provider’s stock. Zacks Investment Research‘s target price would suggest a potential upside of 12.38% from the stock’s current price.
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. The company keeps making significant investments to modernize its infrastructure and facilitate the seamless transition to the latest technologies. Increased risk of identity theft due to data breaches and high consumer awareness about the usage of credit information are further propelling the demand for its consumer solutions. 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.”
A number of other research analysts have also weighed in on the company. Royal Bank of Canada reaffirmed a “buy” rating and set a $57.00 target price on shares of TransUnion in a report on Friday, October 27th. Cowen reaffirmed a “buy” rating and set a $48.00 target price on shares of TransUnion in a report on Thursday, September 7th. Deutsche Bank reaffirmed a “buy” rating on shares of TransUnion in a report on Friday, September 8th. Barclays reaffirmed an “overweight” rating and set a $50.00 target price (up previously from $48.00) on shares of TransUnion in a report on Thursday, September 14th. Finally, JPMorgan Chase & Co. lifted their target price on TransUnion from $54.00 to $60.00 and gave the company an “overweight” rating in a report on Monday, October 30th. One analyst has rated the stock with a hold rating, nine have given a buy rating and one has issued a strong buy rating to the stock. TransUnion currently has an average rating of “Buy” and a consensus price target of $56.90.
TransUnion (NYSE:TRU) last posted its earnings results on Friday, October 27th. The business services provider reported $0.49 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.43 by $0.06. The business had revenue of $498.00 million during the quarter, compared to analyst estimates of $475.52 million. TransUnion had a return on equity of 21.37% and a net margin of 13.17%. The company’s quarterly revenue was up 13.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.38 EPS. sell-side analysts expect that TransUnion will post 1.71 EPS for the current fiscal year.
In other news, CEO James M. Peck sold 18,106 shares of the business’s stock in a transaction dated Thursday, November 2nd. The stock was sold at an average price of $52.25, for a total transaction of $946,038.50. Following the completion of the transaction, the chief executive officer now owns 202,343 shares of the company’s stock, valued at $10,572,421.75. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider James M. Peck sold 18,864 shares of the business’s stock in a transaction dated Friday, October 27th. The stock was sold at an average price of $52.41, for a total value of $988,662.24. Following the transaction, the insider now directly owns 239,313 shares of the company’s stock, valued at approximately $12,542,394.33. The disclosure for this sale can be found here. Insiders have sold 4,630,224 shares of company stock valued at $243,986,497 in the last three months. 2.10% of the stock is owned by insiders.
Several hedge funds and other institutional investors have recently modified their holdings of TRU. Seven Eight Capital LP bought a new stake in TransUnion in the 4th quarter worth approximately $114,000. Ladenburg Thalmann Financial Services Inc. bought a new stake in TransUnion in the 1st quarter worth approximately $118,000. Metropolitan Life Insurance Co. NY lifted its position in TransUnion by 89.9% in the 2nd quarter. Metropolitan Life Insurance Co. NY now owns 3,985 shares of the business services provider’s stock worth $133,000 after buying an additional 1,886 shares during the last quarter. BlackRock Inc. lifted its position in TransUnion by 475.0% in the 1st quarter. BlackRock Inc. now owns 5,100 shares of the business services provider’s stock worth $140,000 after buying an additional 4,213 shares during the last quarter. Finally, Envestnet Asset Management Inc. lifted its position in TransUnion by 16.6% in the 1st quarter. Envestnet Asset Management Inc. now owns 5,443 shares of the business services provider’s stock worth $150,000 after buying an additional 774 shares during the last quarter.
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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