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.”
A number of other equities analysts have also recently issued reports on TRU. ValuEngine cut shares of TransUnion from a buy rating to a hold rating in a research note on Monday, May 13th. Deutsche Bank boosted their target price on TransUnion from $69.00 to $75.00 and gave the stock a buy rating in a research report on Wednesday, April 17th. Barclays reissued a buy rating and issued a $80.00 target price on shares of TransUnion in a research report on Sunday, May 5th. Exane BNP Paribas assumed coverage on TransUnion in a research report on Friday, March 15th. They issued a neutral rating and a $66.00 target price for the company. Finally, BNP Paribas assumed coverage on TransUnion in a research report on Friday, March 15th. They issued a neutral rating and a $66.00 target price for the company. Six analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company. The company has an average rating of Buy and an average target price of $75.40.
TransUnion (NYSE:TRU) last announced its quarterly earnings results on Tuesday, April 23rd. The business services provider reported $0.60 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.53 by $0.07. The company had revenue of $623.50 million for the quarter, compared to analysts’ expectations of $618.38 million. TransUnion had a net margin of 11.43% and a return on equity of 22.63%. TransUnion’s revenue was up 16.0% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.57 EPS. As a group, analysts expect that TransUnion will post 2.39 earnings per share for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Friday, June 7th. Shareholders of record on Thursday, May 23rd will be given a $0.075 dividend. This represents a $0.30 dividend on an annualized basis and a yield of 0.46%. The ex-dividend date of this dividend is Wednesday, May 22nd. TransUnion’s dividend payout ratio (DPR) is 12.99%.
In other news, 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 sale, the insider now owns 335,243 shares of the company’s stock, valued at approximately $21,502,486.02. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider James M. Peck sold 124,070 shares of the company’s stock in a transaction dated Friday, April 26th. The shares were sold at an average price of $68.80, for a total transaction of $8,536,016.00. The disclosure for this sale can be found here. In the last three months, insiders sold 378,511 shares of company stock valued at $25,042,932. 0.92% of the stock is owned by insiders.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Karp Capital Management Corp purchased a new stake in shares of TransUnion during the 4th quarter valued at about $37,000. Harel Insurance Investments & Financial Services Ltd. purchased a new stake in shares of TransUnion during the 1st quarter valued at about $80,000. Ropes Wealth Advisors LLC purchased a new stake in shares of TransUnion during the 4th quarter valued at about $83,000. Fifth Third Bancorp increased its position in shares of TransUnion by 116.0% during the 1st quarter. Fifth Third Bancorp now owns 1,516 shares of the business services provider’s stock valued at $101,000 after purchasing an additional 814 shares during the last quarter. Finally, Massey Quick Simon & CO. LLC increased its position in shares of TransUnion by 21.6% during the 4th quarter. Massey Quick Simon & CO. LLC now owns 1,550 shares of the business services provider’s stock valued at $88,000 after purchasing an additional 275 shares during 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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