Zacks Investment Research upgraded shares of TransUnion (NYSE:TRU) from a hold rating to a buy rating in a report published on Thursday morning, Zacks.com reports. They currently have $72.00 target price on the business services provider’s stock.
According to Zacks, “TransUnion's first-quarter 2019 earnings and revenues surpassed the Zacks Consensus Estimate. The company has an attractive business model with highly recurring and diversified revenue streams, significant operating leverage, low capital requirements and strong and stable cash flows. TransUnion’s huge base of data is its most distinguishing asset and perhaps the biggest barrier to entry for competitors. Acquisitions act as a key growth catalyst. The company serves a broad range of customers across multiple geographies and verticals, and boasts over 35 million customers. On the flip side, shares of TransUnion have underperformed its industry in the past six months. The company operates in a highly competitive market, which restricts its pricing power and limits profitability to some extent. The company's operating segments experience seasonality. High debt may limit TransUnion’s future expansion and worsen its risk profile.”
Several other research analysts have also weighed in on the company. ValuEngine upgraded TransUnion from a hold rating to a buy rating in a research report on Friday, February 22nd. BNP Paribas assumed coverage on TransUnion in a research note on Friday, March 15th. They issued a neutral rating and a $66.00 price objective on the stock. Exane BNP Paribas assumed coverage on TransUnion in a research note on Friday, March 15th. They issued a neutral rating and a $66.00 price target on the stock. Barclays reaffirmed a buy rating and set a $80.00 price objective on shares of TransUnion in a report on Sunday, May 5th. Finally, Deutsche Bank raised their price objective on TransUnion from $69.00 to $75.00 and gave the stock a buy rating in a report on Wednesday, April 17th. Six equities research analysts have rated the stock with a hold rating and ten have given a buy rating to the company’s stock. TransUnion currently has an average rating of Buy and a consensus target price of $75.40.
TRU stock traded down $0.06 on Thursday, hitting $65.11. 15,847 shares of the company’s stock were exchanged, compared to its average volume of 1,709,224. The company has a debt-to-equity ratio of 1.90, a current ratio of 1.64 and a quick ratio of 1.64. The company has a market cap of $12.03 billion, a price-to-earnings ratio of 28.19, a price-to-earnings-growth ratio of 3.88 and a beta of 0.94. TransUnion has a 12-month low of $52.15 and a 12-month high of $79.48.
TransUnion (NYSE:TRU) last released its quarterly earnings results on Tuesday, April 23rd. The business services provider reported $0.60 earnings per share for the quarter, topping analysts’ consensus estimates of $0.53 by $0.07. TransUnion had a return on equity of 22.63% and a net margin of 11.43%. The company had revenue of $623.50 million during the quarter, compared to analysts’ expectations of $618.38 million. During the same quarter in the prior year, the firm posted $0.57 EPS. TransUnion’s quarterly revenue was up 16.0% compared to the same quarter last year. As a group, equities research analysts anticipate that TransUnion will post 2.39 earnings per share for the current year.
The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 7th. Shareholders of record on Thursday, May 23rd will be issued a $0.075 dividend. The ex-dividend date of this dividend is Wednesday, May 22nd. This represents a $0.30 annualized dividend and a dividend yield of 0.46%. TransUnion’s dividend payout ratio is currently 12.99%.
In related news, EVP John T. Danaher sold 4,318 shares of the company’s stock in a transaction dated Friday, May 10th. The shares were sold at an average price of $65.54, for a total value of $283,001.72. Following the transaction, the executive vice president now directly owns 69,491 shares in the company, valued at $4,554,440.14. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider James M. Peck sold 2,327 shares of the company’s stock in a transaction dated Tuesday, February 26th. The shares were sold at an average price of $64.14, for a total transaction of $149,253.78. Following the completion of the transaction, the insider now owns 335,243 shares in the company, valued at $21,502,486.02. The disclosure for this sale can be found here. Insiders sold 378,511 shares of company stock worth $25,042,932 over the last 90 days. 0.92% of the stock is currently owned by corporate insiders.
Several hedge funds have recently added to or reduced their stakes in TRU. Karp Capital Management Corp acquired a new position in shares of TransUnion in the fourth quarter valued at about $37,000. Harel Insurance Investments & Financial Services Ltd. acquired a new position in shares of TransUnion in the first quarter valued at about $80,000. Ropes Wealth Advisors LLC acquired a new position in shares of TransUnion in the fourth quarter valued at about $83,000. Massey Quick Simon & CO. LLC grew its stake in shares of TransUnion by 21.6% in the fourth quarter. Massey Quick Simon & CO. LLC now owns 1,550 shares of the business services provider’s stock valued at $88,000 after acquiring an additional 275 shares in the last quarter. Finally, Fifth Third Bancorp grew its stake in shares of TransUnion by 116.0% in the first quarter. Fifth Third Bancorp now owns 1,516 shares of the business services provider’s stock valued at $101,000 after acquiring an additional 814 shares in the last quarter.
TransUnion provides risk and information solutions. The company operates in three segments: U.S. Information Services (USIS), International, and Consumer Interactive. The USIS segment provides consumer reports, risk scores, and analytical and decisioning services for businesses. These businesses use its services to acquire new customers; assess consumer ability to pay for services; identify cross-selling opportunities; measure and manage debt portfolio risk; collect debt; verify consumer identities; and investigate potential fraud.
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