A TransUnion (NYSE:TRU) insider lowered their holding by 21% earlier this year

Simply Wall St
January 17, 2022
Source: Shutterstock

Insiders were net sellers of TransUnion's (NYSE:TRU ) stock during the past year. That is, insiders sold more stock than they bought.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for TransUnion

The Last 12 Months Of Insider Transactions At TransUnion

In the last twelve months, the biggest single sale by an insider was when the Executive VP & COO, Richard Mauldin, sold US$211k worth of shares at a price of US$105 per share. That means that even when the share price was below the current price of US$108, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 21% of Richard Mauldin's holding. Richard Mauldin was the only individual insider to sell over the last year.

Richard Mauldin ditched 4.19k shares over the year. The average price per share was US$97.32. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NYSE:TRU Insider Trading Volume January 17th 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does TransUnion Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.2% of TransUnion shares, worth about US$34m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About TransUnion Insiders?

It doesn't really mean much that no insider has traded TransUnion shares in the last quarter. Still, the insider transactions at TransUnion in the last 12 months are not very heartening. But it's good to see that insiders own shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing TransUnion. At Simply Wall St, we found 1 warning sign for TransUnion that deserve your attention before buying any shares.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.