What Happened?
Shares of credit reporting company TransUnion (NYSE: TRU) fell 3.7% in the afternoon session after the company revealed that a data breach at a third-party provider exposed the personal information of 4.4 million U.S. customers.
The company confirmed that sensitive data, including customers' names, dates of birth, and Social Security numbers, was stolen. According to filings with the Maine Attorney General's Office, the breach occurred on July 28 but was not discovered until two days later. TransUnion clarified that its own systems were not breached directly; rather, the incident happened at a third-party service provider. This significant exposure of personal data has raised investor concerns about potential liabilities and damage to the company's reputation as a custodian of sensitive financial information.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy TransUnion? Access our full analysis report here, it’s free.
What Is The Market Telling Us
TransUnion’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 11 days ago when the stock gained 5% on the news that the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium. Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.
TransUnion is down 7.1% since the beginning of the year, and at $85.33 per share, it is trading 21.5% below its 52-week high of $108.67 from October 2024. Investors who bought $1,000 worth of TransUnion’s shares 5 years ago would now be looking at an investment worth $956.20.
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