Zacks Investment Research downgraded shares of TransUnion (NYSE:TRU) from a buy rating to a hold rating in a research report sent to investors on Tuesday morning.
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 high consumer awareness about the usage of credit information are 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. However, TransUnion operates in a highly competitive market, which restricts its pricing power and limits profitability to some extent. The company is vulnerable to the overall macroeconomic conditions. Also, TransUnion’s performance is affected by seasonality issues. Stiff competition further restricts its pricing power and puts a strain on the bottom line.”
Several other research analysts have also recently weighed in on the company. Royal Bank of Canada reaffirmed a buy rating and set a $57.00 price objective on shares of TransUnion in a research report on Friday, October 27th. Cowen reaffirmed a buy rating and set a $48.00 price objective on shares of TransUnion in a research report on Thursday, September 7th. SunTrust Banks initiated coverage on TransUnion in a research report on Tuesday, September 5th. They set a buy rating and a $54.00 price target for the company. Deutsche Bank reissued a buy rating on shares of TransUnion in a research report on Friday, September 8th. Finally, Barclays reissued 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. Two investment analysts have rated the stock with a hold rating, eight have given a buy rating and one has issued a strong buy rating to the company’s stock. The stock has an average rating of Buy and a consensus price target of $56.30.
TransUnion (NYSE:TRU) last posted its quarterly earnings data on Friday, October 27th. The business services provider reported $0.49 earnings per share for the quarter, topping the consensus estimate of $0.43 by $0.06. The company had revenue of $498.00 million during the quarter, compared to analysts’ expectations of $475.52 million. TransUnion had a return on equity of 21.37% and a net margin of 13.17%. TransUnion’s revenue for the quarter was up 13.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.38 earnings per share. sell-side analysts anticipate that TransUnion will post 1.71 earnings per share for the current fiscal year.
In other news, major shareholder Goldman Sachs Group Inc sold 3,698,137 shares of the stock in a transaction that occurred on Thursday, November 2nd. The stock was sold at an average price of $52.25, for a total transaction of $193,227,658.25. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Siddharth N. Mehta sold 65,000 shares of the firm’s stock in a transaction on Thursday, November 2nd. The stock was sold at an average price of $52.25, for a total value of $3,396,250.00. Following the transaction, the director now owns 33,389 shares in the company, valued at approximately $1,744,575.25. The disclosure for this sale can be found here. In the last quarter, insiders have sold 4,630,406 shares of company stock worth $243,995,475. 2.10% of the stock is owned by corporate insiders.
A number of institutional investors have recently bought and sold shares of the business. Atlantic Trust Group LLC increased its stake in TransUnion by 48.5% during the 3rd quarter. Atlantic Trust Group LLC now owns 242,954 shares of the business services provider’s stock worth $11,482,000 after acquiring an additional 79,329 shares during the period. Public Employees Retirement System of Ohio boosted its holdings in shares of TransUnion by 21.4% during the 3rd quarter. Public Employees Retirement System of Ohio now owns 65,083 shares of the business services provider’s stock valued at $3,076,000 after acquiring an additional 11,485 shares in the last quarter. Sterling Capital Management LLC bought a new position in TransUnion during the 3rd quarter worth $1,778,000. Neuberger Berman Group LLC raised its position in TransUnion by 20.1% during the 3rd quarter. Neuberger Berman Group LLC now owns 2,584,349 shares of the business services provider’s stock worth $122,136,000 after purchasing an additional 433,060 shares during the last quarter. Finally, California Public Employees Retirement System raised its position in TransUnion by 1.2% during the 3rd quarter. California Public Employees Retirement System now owns 263,300 shares of the business services provider’s stock worth $12,444,000 after purchasing an additional 3,200 shares during the last quarter.
TransUnion Company Profile
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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