Don't Ignore The Fact That This Insider Just Sold Some Shares In TransUnion (NYSE:TRU)

By
Simply Wall St
Published
May 16, 2021
NYSE:TRU

We'd be surprised if TransUnion (NYSE:TRU) shareholders haven't noticed that the Executive VP & COO, Richard Mauldin, recently sold US$211k worth of stock at US$105 per share. The eyebrow raising move amounted to a reduction of 21% in their holding.

Check out our latest analysis for TransUnion

TransUnion Insider Transactions Over The Last Year

The President, Christopher Cartwright, made the biggest insider sale in the last 12 months. That single transaction was for US$2.7m worth of shares at a price of US$79.28 each. That means that an insider was selling shares at slightly below the current price (US$108). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 48% of Christopher Cartwright's stake.

Insiders in TransUnion didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NYSE:TRU Insider Trading Volume May 16th 2021

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of TransUnion

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 0.4% of TransUnion shares, worth about US$78m. 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?

An insider hasn't bought TransUnion stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But it is good to see that TransUnion is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing TransUnion. For example - TransUnion has 2 warning signs we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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