Healthy Upside Potential: TransUnion (TRU)

TransUnion (NYSE: TRU) stock jumped 1.80% on Thursday to $81.66 against a previous-day closing price of $80.22. With 0.65 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.27 million shares. During the session, the Consulting Services company that operates in wider Industrials sector, reached to the highest price of $81.72 whereas the lowest price it dropped to was $80.15. The 52-week range on TRU shows that it touched its highest point at $82.75 and its lowest point at $50.32 during that stretch. It currently has a 1-year price target of $91.44. With its current market cap of 15.95 billion, TRU has annualized dividend of $0.42 while the current yield stands at 0.51%. Beta for the stock currently stands at 1.36.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of TRU was up-trending over the past week, with a rise of 1.24%, but this was up by 3.51% over a month. Three-month performance surged to 8.14% while six-month performance rose 32.80%. The stock gained 11.80% in the past year, while it has gained 43.89% so far this year. A look at the trailing 12-month EPS for TRU yields 1.11 with Next year EPS estimates of 4.26. For the next quarter, that number is 0.95. This implies an EPS growth rate of -29.10% for this year and 18.48% for next year. EPS is expected to grow by 10.75% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -1.40%.

Float and Shares Shorts:

At present, 193.20 million TRU shares are outstanding with a float of 192.71 million shares on hand for trading. On Aug 30, 2023, short shares totaled 6.63 million, which was 3.43% higher than short shares on Jul 30, 2023. In addition to Mr. Christopher A. Cartwright as the firm’s Pres, CEO & Director, Mr. Todd M. Cello CPA serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 101.98% of TRU’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 57.12% of TRU, in contrast to 46.47% held by mutual funds. Shares owned by individuals account for 35.56%. As the largest shareholder in TRU with 8.95% of the stake, The Vanguard Group, Inc. holds 17,305,598 shares worth 17,305,598. A second-largest stockholder of TRU, T. Rowe Price Investment Manageme, holds 15,332,520 shares, controlling over 7.93% of the firm’s shares. Wellington Management Co. LLP is the third largest shareholder in TRU, holding 11,808,666 shares or 6.11% stake. With a 3.11% stake in TRU, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 6,009,957 shares are owned by the mutual fund manager. The Stichting Pensioenfonds ABP, which owns about 2.96% of TRU stock, is the second-largest Mutual Fund holder. It holds 5,717,074 shares valued at 455.59 million. T Rowe Price Capital Appreciation holds 2.41% of the stake in TRU, owning 4,662,764 shares worth 371.58 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, TRU reported revenue of $948.30M and operating income of $182.50M. The EBITDA in the recently reported quarter was $320.00M and diluted EPS was $0.49.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TRU since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With TRU analysts setting a high price target of $100.00 and a low target of $80.00, the average target price over the next 12 months is $91.21. Based on these targets, TRU could surge 22.46% to reach the target high and fall by -2.03% to reach the target low. Reaching the average price target will result in a growth of 11.69% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded TRU stock several times over the past three months with 1 Buys and 5 Sells. In these transactions, 1,915 shares were bought while 8,351 shares were sold. The number of buy transactions has increased to 36 while that of sell transactions has risen to 34 over the past year. The total number of shares bought during that period was 321,971 while 119,231 shares were sold.

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