TransUnion (NYSE:TRU) was upgraded by Zacks Investment Research from a "hold" rating to a "strong-buy" rating in a research note issued on Tuesday, Zacks.com reports. The firm presently has a $89.00 price objective on the business services provider's stock. Zacks Investment Research's price target indicates a potential upside of 2.89% from the stock's current price.
According to Zacks, "TransUnion has an attractive business model with highly recurring and diversified revenue streams, significant operating leverage, low capital requirements and stable cash flows. Huge data base is its most distinguishing asset and perhaps the biggest barrier to entry for competitors. The company serves a broad range of customers across multiple geographies and verticals and boasts millions of customers. Buyouts have played a major role in its growth over the last five to six years. However, TransUnion operates in a highly competitive market, which restricts its pricing power and limits profitability to some extent. Adverse developments in the debt, consumer credit and financial services markets could hamper the company’s growth. Seasonality is a concern. Partly due to these negatives, the stock has underperformed its industry in the past year."
Other equities research analysts have also recently issued reports about the company. Deutsche Bank lifted their price objective on TransUnion from $85.00 to $90.00 and gave the stock a "buy" rating in a report on Monday, June 1st. SunTrust Banks raised their target price on shares of TransUnion from $88.00 to $92.00 and gave the stock a "buy" rating in a research note on Wednesday, April 29th. Morgan Stanley raised their target price on shares of TransUnion from $92.00 to $96.00 and gave the stock an "overweight" rating in a research note on Wednesday, June 24th. Barclays raised their target price on shares of TransUnion from $75.00 to $105.00 in a research note on Wednesday, June 10th. Finally, Robert W. Baird lowered shares of TransUnion from an "outperform" rating to a "neutral" rating and decreased their target price for the stock from $109.00 to $76.00 in a research note on Friday, March 13th. Four analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has given a strong buy rating to the company. The company currently has an average rating of "Buy" and an average price target of $92.40.
Shares of NYSE:TRU traded up $2.29 during trading on Tuesday, reaching $86.50. 26,254 shares of the company's stock traded hands, compared to its average volume of 1,092,496. TransUnion has a fifty-two week low of $52.50 and a fifty-two week high of $101.16. The company has a quick ratio of 1.66, a current ratio of 1.66 and a debt-to-equity ratio of 1.66. The firm has a market cap of $15.69 billion, a PE ratio of 47.79, a P/E/G ratio of 2.86 and a beta of 1.19. The company has a 50-day simple moving average of $84.87 and a 200-day simple moving average of $83.32.
TransUnion (NYSE:TRU) last posted its quarterly earnings data on Tuesday, April 28th. The business services provider reported $0.73 earnings per share (EPS) for the quarter, topping the Thomson Reuters' consensus estimate of $0.69 by $0.04. TransUnion had a return on equity of 24.01% and a net margin of 12.71%. The company had revenue of $688.00 million for the quarter, compared to analysts' expectations of $665.25 million. During the same period in the previous year, the firm posted $0.60 EPS. TransUnion's revenue was up 10.3% compared to the same quarter last year. On average, equities research analysts forecast that TransUnion will post 2.4 EPS for the current year.
In other TransUnion news, insider Steven M. Chaouki sold 4,368 shares of the business's stock in a transaction that occurred on Thursday, April 9th. The stock was sold at an average price of $72.45, for a total value of $316,461.60. Following the sale, the insider now owns 39,515 shares of the company's stock, valued at $2,862,861.75. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP Timothy J. Martin sold 3,000 shares of the business's stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $85.00, for a total value of $255,000.00. Following the completion of the sale, the executive vice president now directly owns 34,129 shares in the company, valued at approximately $2,900,965. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 231,208 shares of company stock worth $18,563,146. Corporate insiders own 0.38% of the company's stock.
A number of hedge funds and other institutional investors have recently made changes to their positions in the business. BlackRock Inc. raised its position in TransUnion by 0.7% in the first quarter. BlackRock Inc. now owns 15,859,694 shares of the business services provider's stock valued at $1,049,595,000 after purchasing an additional 102,667 shares during the period. Massachusetts Financial Services Co. MA grew its stake in shares of TransUnion by 12.1% in the first quarter. Massachusetts Financial Services Co. MA now owns 5,362,607 shares of the business services provider's stock worth $354,897,000 after acquiring an additional 576,896 shares in the last quarter. State Street Corp grew its stake in shares of TransUnion by 1.5% in the first quarter. State Street Corp now owns 3,918,548 shares of the business services provider's stock worth $259,330,000 after acquiring an additional 56,784 shares in the last quarter. Geode Capital Management LLC grew its stake in shares of TransUnion by 4.4% in the first quarter. Geode Capital Management LLC now owns 1,927,353 shares of the business services provider's stock worth $127,432,000 after acquiring an additional 81,050 shares in the last quarter. Finally, Sumitomo Mitsui Trust Holdings Inc. grew its stake in shares of TransUnion by 11.4% in the first quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 1,908,889 shares of the business services provider's stock worth $126,330,000 after acquiring an additional 195,677 shares in the last quarter. 97.58% of the stock is currently owned by institutional investors.
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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