TransUnion (NYSE:TRU) Shares Gap Down - Should You Sell?

Key Points

• TransUnion shares fell 3.7% after gapping down at the open, moving from a prior close of $79.01 to an opening price of $74.98.
• Recent analyst activity has been mixed, with several firms trimming targets while keeping generally positive ratings. The stock now carries a Moderate Buy consensus and an average price target of $91.60.
• The company reported better-than-expected quarterly results, with EPS of $1.18 versus $1.11 expected and revenue of $1.25 billion topping estimates. TransUnion also announced a quarterly dividend of $0.125 per share, equal to a 0.7% annual yield.

Shares of TransUnion (NYSE:TRU - Get Free Report) gapped down before the market opened on Tuesday . The stock had previously closed at $79.01, but opened at $74.98. TransUnion shares last traded at $76.5120, with a volume of 183,119 shares.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on TRU shares. Needham & Company LLC restated a "buy" rating and issued a $95.00 target price on shares of TransUnion in a research note on Wednesday, April 29th. Robert W. Baird set a $108.00 price objective on TransUnion in a report on Wednesday, April 29th. Bank of America cut their price objective on TransUnion from $83.00 to $80.00 and set a "neutral" rating on the stock in a research note on Tuesday, May 19th. Wall Street Zen lowered TransUnion from a "buy" rating to a "hold" rating in a research report on Saturday, April 18th. Finally, JPMorgan Chase & Co. lowered their price target on TransUnion from $95.00 to $90.00 and set an "overweight" rating for the company in a report on Wednesday, April 29th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $91.60.

TransUnion Stock Down 3.7%

The stock has a market cap of $14.67 billion, a P/E ratio of 21.05, a price-to-earnings-growth ratio of 1.43 and a beta of 1.55. The company has a current ratio of 1.93, a quick ratio of 1.93 and a debt-to-equity ratio of 1.10. The stock's 50-day moving average is $71.22 and its 200-day moving average is $73.95.

TransUnion (NYSE:TRU - Get Free Report) last announced its quarterly earnings data on Tuesday, April 28th. The business services provider reported $1.18 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.11 by $0.07. TransUnion had a net margin of 14.91% and a return on equity of 16.09%. The company had revenue of $1.25 billion for the quarter, compared to analysts' expectations of $1.21 billion. During the same quarter in the previous year, the company posted $1.05 EPS. The business's revenue was up 13.7% compared to the same quarter last year. TransUnion has set its Q2 2026 guidance at 1.130-1.150 EPS. As a group, research analysts anticipate that TransUnion will post 4.14 earnings per share for the current fiscal year.

TransUnion Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, June 11th. Stockholders of record on Wednesday, May 27th were issued a $0.125 dividend. The ex-dividend date was Wednesday, May 27th. This represents a $0.50 dividend on an annualized basis and a dividend yield of 0.7%. TransUnion's dividend payout ratio is presently 13.85%.

Insiders Place Their Bets

In other news, EVP Heather J. Russell sold 6,683 shares of the firm's stock in a transaction on Friday, May 29th. The stock was sold at an average price of $71.87, for a total value of $480,307.21. Following the completion of the sale, the executive vice president owned 45,248 shares of the company's stock, valued at $3,251,973.76. This trade represents a 12.87% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Todd C. Skinner sold 1,000 shares of TransUnion stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $72.64, for a total value of $72,640.00. Following the transaction, the insider owned 64,634 shares in the company, valued at $4,695,013.76. This represents a 1.52% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 30,155 shares of company stock worth $2,177,102 over the last three months. Company insiders own 0.37% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Threadgill Financial LLC increased its holdings in TransUnion by 58.4% in the fourth quarter. Threadgill Financial LLC now owns 63,334 shares of the business services provider's stock valued at $5,431,000 after purchasing an additional 23,343 shares during the last quarter. Wealth High Governance Capital Ltda bought a new position in TransUnion during the fourth quarter worth about $10,466,000. Mirabaud Asset Management Ltd boosted its holdings in TransUnion by 49.3% during the fourth quarter. Mirabaud Asset Management Ltd now owns 76,844 shares of the business services provider's stock worth $7,221,000 after buying an additional 25,381 shares during the last quarter. Financiere des Professionnels Fonds d investissement inc. grew its position in shares of TransUnion by 18.6% during the 4th quarter. Financiere des Professionnels Fonds d investissement inc. now owns 292,452 shares of the business services provider's stock worth $25,078,000 after buying an additional 45,840 shares during the period. Finally, Ninety One UK Ltd increased its stake in shares of TransUnion by 1.9% in the 4th quarter. Ninety One UK Ltd now owns 3,602,070 shares of the business services provider's stock valued at $308,877,000 after acquiring an additional 65,612 shares during the last quarter.

About TransUnion

TransUnion is a global information and insights company that helps businesses and consumers make critical decisions using data and analytics. As one of the three major credit bureaus in the United States, TransUnion collects and aggregates credit information on individuals and businesses, providing credit reports, risk scores and portfolio management tools to financial institutions, lenders, landlords and other decision makers. Its consumer-facing products enable individuals to monitor credit status, detect identity theft and access personalized financial insights.

The company's offerings span credit risk assessment, identity management, fraud prevention and marketing solutions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.