Good news for Equifax (NYSE:EFX) investors, as the credit reporting firm landed an upgrade from analysts. That upgrade was sufficient to inspire investors, as they put better than 2% extra into Equifax’s market cap as a result.
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The word came from Citi Research via analyst Arthur Truslove. Truslove noted that the current consensus on Equifax isn’t really considering the impact of a rebound in the mortgage market when forecasting Equifax’s future earnings. Truslove advances the notion that if Equifax’s EWS mortgage business can continue as it is—outpacing overall mortgage originations—then there’s an error in Wall Street’s projections. Truslove also notes that volumes staying “subdued” for more than two years would be “unusual” and less likely to happen.
Equifax Insiders Aren’t So Confident, However
Yet, even as Truslove looks for gains, Equifax insiders don’t seem so sure. Reports noted that Bryson Koehler, an executive vice president, sold off 1,000 shares. That prompted some concern about the internal workings of Equifax, but reports noted that it was an “auto sell,” which suggests that it was part of a scheduled transaction and, thus, not much to be concerned about.
There are, of course, several reasons a stock sale might happen, and with the end of the year coming, there may have been some tax issues involved as well. Nonetheless, three other EVPs sold stock the same day as Bryson did, including John J. Kelley, Julia Houston, and Rodolfo Ploder. All of these were considered auto sales as well.
What is the Price Prediction for Equifax?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on EFX stock based on seven Buys, seven Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 7.4% rally in its share price over the past year, the average EFX price target of $207.50 per share implies 0.97% downside risk.
