TransUnion (NYSE:TRU) Shares Gap Down - Time to Sell?

Key Points

• TransUnion's stock gapped down prior to trading on Thursday, opening at $74.69 after previously closing at $82.26, with shares last trading at $73.72.
• Analysts have mixed views on TransUnion, with an average rating of "Moderate Buy" and a target price of $112.92 based on recent upgrades and downgrades.
• The company reported a 9.5% year-over-year revenue increase to $1.14 billion for its last quarterly earnings, alongside an earnings per share of $1.08, surpassing estimates.

Shares of TransUnion (NYSE:TRU - Get Free Report) gapped down prior to trading on Thursday . The stock had previously closed at $82.26, but opened at $74.69. TransUnion shares last traded at $73.72, with a volume of 4,668,862 shares.

Analyst Upgrades and Downgrades

TRU has been the topic of several recent analyst reports. Needham & Company LLC upgraded TransUnion from a "hold" rating to a "buy" rating and set a $115.00 price objective on the stock in a report on Wednesday, September 3rd. Oppenheimer lifted their price objective on TransUnion from $100.00 to $108.00 and gave the company an "outperform" rating in a report on Tuesday, July 8th. UBS Group restated a "neutral" rating and issued a $105.00 price target (up from $98.00) on shares of TransUnion in a research note on Friday, July 25th. BMO Capital Markets increased their price target on TransUnion from $115.00 to $118.00 and gave the company an "outperform" rating in a research note on Friday, July 25th. Finally, Wells Fargo & Company decreased their price target on TransUnion from $124.00 to $118.00 and set an "overweight" rating for the company in a research report on Friday, July 25th. Eleven equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, TransUnion currently has an average rating of "Moderate Buy" and an average target price of $112.92.

TransUnion Trading Down 10.7%

The firm has a market cap of $14.31 billion, a P/E ratio of 37.09, a P/E/G ratio of 2.35 and a beta of 1.72. The company's 50 day simple moving average is $90.14 and its 200-day simple moving average is $86.71. The company has a quick ratio of 2.02, a current ratio of 2.03 and a debt-to-equity ratio of 1.09.

TransUnion (NYSE:TRU - Get Free Report) last released its quarterly earnings results on Thursday, July 24th. The business services provider reported $1.08 earnings per share for the quarter, topping the consensus estimate of $0.99 by $0.09. TransUnion had a net margin of 8.99% and a return on equity of 16.08%. The firm had revenue of $1.14 billion during the quarter, compared to the consensus estimate of $1.10 billion. During the same quarter in the prior year, the firm earned $0.99 EPS. The company's revenue for the quarter was up 9.5% on a year-over-year basis. TransUnion has set its FY 2025 guidance at 4.030-4.140 EPS. Q3 2025 guidance at 0.990-1.040 EPS. As a group, research analysts predict that TransUnion will post 3.99 earnings per share for the current fiscal year.

TransUnion Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, September 8th. Shareholders of record on Friday, August 22nd were issued a $0.115 dividend. This represents a $0.46 annualized dividend and a dividend yield of 0.6%. The ex-dividend date was Friday, August 22nd. TransUnion's dividend payout ratio (DPR) is presently 23.00%.

Insider Activity

In related news, insider Steven M. Chaouki sold 1,000 shares of the stock in a transaction that occurred on Tuesday, September 2nd. The stock was sold at an average price of $86.12, for a total transaction of $86,120.00. Following the completion of the sale, the insider directly owned 65,592 shares of the company's stock, valued at approximately $5,648,783.04. This represents a 1.50% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Heather J. Russell sold 5,337 shares of the firm's stock in a transaction on Friday, September 5th. The shares were sold at an average price of $90.01, for a total value of $480,383.37. Following the sale, the executive vice president directly owned 23,011 shares of the company's stock, valued at $2,071,220.11. This represents a 18.83% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 9,309 shares of company stock valued at $836,649 over the last 90 days. 0.22% of the stock is currently owned by company insiders.

Institutional Trading of TransUnion

Several institutional investors and hedge funds have recently modified their holdings of TRU. Teacher Retirement System of Texas purchased a new position in shares of TransUnion in the 1st quarter valued at approximately $2,364,000. Bank of New York Mellon Corp lifted its holdings in TransUnion by 1.3% during the first quarter. Bank of New York Mellon Corp now owns 1,167,843 shares of the business services provider's stock worth $96,919,000 after buying an additional 15,030 shares during the period. Charles Schwab Investment Management Inc. raised its stake in shares of TransUnion by 1.8% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 712,890 shares of the business services provider's stock valued at $59,163,000 after buying an additional 12,372 shares during the last quarter. LPL Financial LLC boosted its holdings in TransUnion by 7.1% in the 1st quarter. LPL Financial LLC now owns 58,161 shares of the business services provider's stock worth $4,827,000 after buying an additional 3,869 shares during the last quarter. Finally, Citigroup Inc. lifted its holdings in TransUnion by 20.7% in the first quarter. Citigroup Inc. now owns 139,238 shares of the business services provider's stock valued at $11,555,000 after acquiring an additional 23,915 shares during the last quarter.

About TransUnion

TransUnion operates as a global consumer credit reporting agency that provides risk and information solutions. The company operates through U.S. Markets, International, and Consumer Interactive segments. The U.S. Markets segment provides consumer reports, actionable insights, and analytic services to businesses, which uses 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 mitigate fraud risk.

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