TransUnion (NYSE:TRU)'s SVP and Chief Accounting Officer, Jennifer A. Williams, recently sold shares of the company's common stock, according to a new SEC filing. The transactions included the sale of 237 shares at a price of $97.77 per share, totaling approximately $23,171. The sales occurred on August 26 and were carried out under a prearranged Rule 10b5-1 trading plan.
The transactions come alongside the withholding of 99 shares by the company, valued at $97.28 each, to cover tax liabilities related to the vesting of restricted stock units. This withholding, which occurred on August 23, had a total value of $9,630.
Following these transactions, Williams continues to hold 7,760 shares of TransUnion (NYSE:TRU) common stock, as indicated by the SEC filing. The company, based in Chicago, Illinois, specializes in consumer credit reporting and has a broad reach in the financial services industry.
The use of a Rule 10b5-1 trading plan, as noted in the footnote of the SEC filing, allows company insiders to sell stocks at predetermined times and prices, providing a defense against potential claims of insider trading.
Investors often keep a close eye on insider transactions as they may provide insights into the company's financial health and the confidence level of its top executives. However, it is important to note that these transactions can be influenced by a variety of personal financial considerations and do not necessarily reflect the executive's outlook on the company's future performance.
For further details on the latest insider transactions at TransUnion, interested parties can refer to the full SEC Form 4 filing.
In other recent news, TransUnion, a global information and insights company, reported an 8% revenue growth in the second quarter of 2024, surpassing expectations. This growth was primarily driven by significant contributions from its financial services and emerging verticals segments, as well as double-digit growth in international markets. As a result, TransUnion has raised its full-year guidance. Despite overall growth, certain segments like collections, tenant, and employment businesses have seen a decline. Adjusted EBITDA margin for Q3 is also expected to decline.
Analyst firms Baird and RBC Capital Markets have maintained an Outperform rating on TransUnion, with Baird increasing its price target from $94.00 to $104.00 and RBC Capital Markets raising the share price target to $106.00 from a previous $85.00. These revisions reflect TransUnion's ability to achieve solid revenue growth despite a downturn in consumer lending.
In addition to its financial performance, TransUnion has declared a regular quarterly cash dividend of $0.105 per share for the second quarter of 2024, reflecting the company's ongoing commitment to return value to its shareholders. TransUnion's business extends beyond traditional credit information services, with a portfolio that includes marketing solutions, fraud prevention, risk management, and advanced analytics. These services aim to facilitate secure and confident transactions for both consumers and businesses.
InvestingPro Insights
As TransUnion's SVP and Chief Accounting Officer, Jennifer A. Williams, engages in recent stock transactions, investors and market watchers may find value in examining the company's financial health and market performance through the lens of InvestingPro metrics and insights. TransUnion (NYSE:TRU), a key player in consumer credit reporting, shows a blend of financial strengths and challenges in the current market landscape.
InvestingPro data reveals that TransUnion has a market capitalization of $18.76 billion, reflecting its significant presence in the industry. While the company is trading at a high Price/Earnings (P/E) ratio of -115.45, indicating investor expectations of future earnings growth, the adjusted P/E ratio for the last twelve months as of Q2 2024 stands at a more moderate 64.09. This suggests that, despite current losses, investors may anticipate improved profitability ahead.
One of the InvestingPro Tips highlights that TransUnion has raised its dividend for three consecutive years, which could be seen as a sign of the company's commitment to returning value to shareholders. Additionally, with a gross profit margin of 60.79% for the last twelve months as of Q2 2024, the company demonstrates a strong ability to retain earnings over sales. Such a robust margin is often indicative of a competitive advantage and pricing power within the industry.
Investors looking to gauge the stock's potential movement might also consider that the company's shares are trading near their 52-week high, with a price percentage of 97.44% of that peak. This performance is reinforced by a notable one-month price total return of 12.78% and a six-month return of 26.66%, suggesting a positive short-term investment sentiment.
For those interested in a deeper dive into TransUnion's financials and market performance, InvestingPro offers additional insights, with 17 more InvestingPro Tips available, including analysis on earnings revisions, stock volatility, and debt levels. These tips can be accessed for more comprehensive investment research and decision-making at: https://www.investing.com/pro/TRU.
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