What Happened?

Shares of credit reporting company TransUnion (NYSE: TRU) jumped 3.9% in the morning session after the company announced a strategic partnership with Truework to expand its income and employment verification solutions. 

This collaboration with the leading verification provider follows a strategic minority investment TransUnion made in Truework earlier this year. Together, the two companies plan to provide comprehensive income verification coverage by combining Truework's platform with TransUnion's robust credit data. They also intend to jointly develop the next generation of verification of income and employment (VOIE) solutions. The partnership is expected to accelerate the distribution of these services to TransUnion's customers, improving the verification process for lenders and the experience for consumers.

After the initial pop the shares cooled down to $93.15, up 3.5% from previous close.

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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 6 days ago when the stock dropped 3.7% on the news that 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.

TransUnion is up 1.4% since the beginning of the year, but at $93.15 per share, it is still trading 14.3% 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 $1,122.

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