Ninety One UK Ltd, a leading asset management company, has reported a decrease of 19.4% holdings in TransUnion (NYSE:TRU). According to the company’s latest filing with the Securities and Exchange Commission (SEC), Ninety One UK Ltd sold 378,312 shares of business services provider’s stock in the fourth quarter, and currently owns 1,569,246 shares worth $89,055,000. This represents less than 1% of TransUnion’s total market capitalization value.
Moreover, TransUnion also recently announced its quarterly dividend payout on March 24th which yielded $0.105 per share. Shareholders who were on record as of March 9th received this cash dividend while the ex-dividend date was March 8th. The annualized dividend was calculated at $0.42 per share and stands at an impressive yield of 0.61%. Based on TransUnion’s current payout ratio of 29.79%, investors can expect continued dividends from this business service provider.
However, it is interesting to note that insiders have been selling off their stock shares in TransUnion over the past few months. Todd C. Skinner sold 25,989 shares on March 29th for a total amount of $1,559,340 which amounted to approximately $60 per share price average. Insider sales began in earnest since December when Ninety One UK decreased their portfolio holdings by almost two-thirds.
While these insider transactions are worth noting and may raise some concerns among investors regarding corporate governance practices within TransUnion; overall this information may be viewed as just another routine market activity for companies such as these within the Financial Times Stock Exchange (FTSE) index.’
TransUnion’s Institutional Investment on the Rise, Despite Mixed Analyst Ratings and Missed Earnings Estimates
The institutional investment in TransUnion, a global provider of specialized risk management solutions and credit information, has been on the rise lately, as indicated by a number of recent changes in holdings. The latest report from Market Watch reveals that CCLA Investment Management has acquired new stake worth $80,459,000 in shares of TransUnion in the third quarter; Van ECK Associates Corp grew its holdings by 94.7% to now own 2,301,642 shares of business services provider’s stock worth $136,925,000 after purchasing an additional 1,119,469 shares during the same period; BlueSpruce Investments LP also increased its position to now own 5,983.742 shares worth $355.973 million since adding 973.517 shares last quarter; while River Road Asset Management LLC bought shares valued at $53.27 million during the fourth quarter and Rockefeller Capital Management raised its holdings by 82,863.6%. It is notable that as much as 95.02% of TRU’s stock is owned by institutional investors and hedge funds.
Despite the surge in holdings from institutional investors in recent months, Wall Street analysts covering TransUnion maintain a positive outlook for this company with several brokerages issuing buy ratings and price targets set above current trading levels. According to Market Watch data referenced here earlier this week: Barclays lowered their price target on TRU from $72 to $67 but maintained hold rating; StockNews.com initiated coverage with a hold rating; Bank of America decreased its target price on TRU to $84 after changing their rating to buy for the company; Morgan Stanley lowered their price objective on TransUnion from $80 to $78 but is still advising clients to overweight shares; whilst Robert W Baird boosted the business services provider’s target price from 78.00 dollars up to 83 dollars while keeping an outperform stance for TRU stocks.
Further information from the same source indicated that the company also recently declared a quarterly dividend, which was paid on 24th March while shares of NYSE TRU changed hands at $68.57 per share. TransUnion’s stock closed at a trading volume of 432,043 shares last Friday compared to its average volume of 1,649,400; it has a market capitalization of $13.25 billion and a PE ratio of 47.76, as well as having a quick ratio of 1.60 and current ratio of 1.57 indicating good financial health for their current fiscal year’s ending projections. The firm’s fifty-day moving average is $62.82 and the two-hundred day moving average is $62.20.
TransUnion (NYSE:TRU) made headlines earlier this month when it released its quarterly earnings results showing an EPS of $0.70 for the quarter, missing analysts’ consensus estimates by ($0.04), however, its net margin remained positive at 7.34% and its return on equity stood steady with last year’s figure at around 14%.
Overall therefore despite the mixed bag in analysts ratings accompanied by missed earnings estimates this quarter for TRU stocks so far in Q1-2017 and additional factors such as global political uncertainty coupled with possible changes from regulatory authorities adding complexities to risk management solutions worldwide early investment reports from institutional investors indicate positivity overall towards TransUnion giving hopes for future growth potentials in months ahead despite challenges.
The views expressed are not necessarily reflective of North Loop or any other institution she represents.