CHICAGO—Awad George M, a director at TransUnion (NYSE:TRU), reported selling 12,000 shares of the company’s common stock on November 25, according to a recent SEC filing. The shares were sold at a price of $100 each, totaling $1.2 million. Following the transaction, Awad retains ownership of 27,026 shares. The sale was conducted under a Rule 10b5-1 trading plan.
In other recent news, TransUnion reported significant growth in its third quarter, surpassing revenue expectations with a 12% increase. Key contributors to this growth were the U.S. financial services, which saw a 17% increase. Analyst firms Stifel and Baird responded positively to these developments, raising TransUnion's stock target to $120 and $130 respectively. B.Riley, however, maintained a Neutral rating on TransUnion's stock.
TransUnion's ongoing transformation program, expected to yield $200 million in free cash flow benefits by 2026, was also highlighted. The company's capital expenditures are projected to decrease to 8% of revenues for 2024 and 2025, contributing to margin expansion.
In terms of personnel changes, William P. Bosworth, a member of TransUnion's Board of Directors, will resign effective December 31, 2024, and executive Timothy J. Martin has announced his intention to retire in September 2026. Despite a slowdown in the mortgage segment and consumer lending growth rates in India, these recent developments underline TransUnion's strategic direction and commitment to delivering value to its customers and shareholders.
InvestingPro Insights
The recent insider sale by TransUnion director Awad George M comes at a time when the company's stock has shown significant momentum. According to InvestingPro data, TransUnion has experienced a remarkable 74.79% price total return over the past year, with a 32.32% gain in the last six months alone. This strong performance aligns with an InvestingPro Tip highlighting the company's high return over the last year.
Despite the impressive stock performance, TransUnion's valuation metrics present a mixed picture. The company's P/E ratio stands at 87.49, which an InvestingPro Tip notes as "trading at a high earnings multiple." However, another tip suggests that TransUnion is "trading at a low P/E ratio relative to near-term earnings growth," with a PEG ratio of 0.39, indicating potential undervaluation when considering future growth prospects.
Financially, TransUnion appears to be on solid footing. The company boasts impressive gross profit margins, with the latest data showing a 59.96% gross profit margin for the last twelve months. Additionally, an InvestingPro Tip points out that TransUnion "operates with a moderate level of debt" and that "liquid assets exceed short term obligations," suggesting a stable financial position.
For investors seeking more comprehensive analysis, InvestingPro offers 16 additional tips for TransUnion, providing a deeper understanding of the company's financial health and market position.
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