Western Union (NYSE:WU) Reaches New 1-Year Low – What’s Next?

The Western Union Company (NYSE:WU)’s share price reached a new 52-week low during trading on Tuesday . The company traded as low as $10.19 and last traded at $10.37, with a volume of 3322931 shares traded. The stock had previously closed at $10.27.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on WU shares. StockNews.com raised shares of Western Union from a “sell” rating to a “hold” rating in a research note on Friday, October 25th. Barclays reduced their price objective on shares of Western Union from $11.00 to $10.00 and set an “underweight” rating on the stock in a research note on Friday, December 13th. UBS Group dropped their target price on Western Union from $13.50 to $12.00 and set a “neutral” rating for the company in a research note on Thursday, October 24th. Finally, Keefe, Bruyette & Woods decreased their price target on Western Union from $13.00 to $12.00 and set a “market perform” rating on the stock in a research note on Monday, December 9th. Two investment analysts have rated the stock with a sell rating and nine have assigned a hold rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $12.63.

Western Union Price Performance

The stock has a market cap of $3.56 billion, a PE ratio of 5.40, a price-to-earnings-growth ratio of 1.39 and a beta of 0.85. The company has a quick ratio of 1.10, a current ratio of 1.10 and a debt-to-equity ratio of 3.96. The company’s fifty day moving average is $10.74 and its 200 day moving average is $11.48.

Western Union (NYSE:WU) last issued its earnings results on Wednesday, October 23rd. The credit services provider reported $0.46 EPS for the quarter, beating analysts’ consensus estimates of $0.44 by $0.02. Western Union had a net margin of 16.07% and a return on equity of 120.39%. The business had revenue of $1.04 billion for the quarter, compared to the consensus estimate of $1.03 billion. During the same quarter last year, the firm posted $0.43 EPS. The business’s revenue for the quarter was down 5.6% compared to the same quarter last year. As a group, sell-side analysts anticipate that The Western Union Company will post 1.77 earnings per share for the current fiscal year.

Western Union Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, December 31st. Stockholders of record on Monday, December 23rd were given a $0.235 dividend. This represents a $0.94 annualized dividend and a dividend yield of 8.93%. The ex-dividend date of this dividend was Monday, December 23rd. Western Union’s payout ratio is 48.21%.

Western Union announced that its Board of Directors has approved a stock repurchase plan on Friday, December 13th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the credit services provider to purchase up to 27.5% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board believes its stock is undervalued.

Hedge Funds Weigh In On Western Union

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Commonwealth Equity Services LLC lifted its position in shares of Western Union by 42.1% during the second quarter. Commonwealth Equity Services LLC now owns 50,342 shares of the credit services provider’s stock worth $615,000 after purchasing an additional 14,914 shares in the last quarter. American Century Companies Inc. increased its stake in Western Union by 11.5% during the 2nd quarter. American Century Companies Inc. now owns 121,455 shares of the credit services provider’s stock worth $1,484,000 after buying an additional 12,495 shares during the period. Federated Hermes Inc. lifted its holdings in Western Union by 2.6% in the 2nd quarter. Federated Hermes Inc. now owns 499,269 shares of the credit services provider’s stock worth $6,101,000 after buying an additional 12,815 shares in the last quarter. Envestnet Asset Management Inc. boosted its position in Western Union by 6.5% in the 2nd quarter. Envestnet Asset Management Inc. now owns 384,575 shares of the credit services provider’s stock valued at $4,700,000 after buying an additional 23,523 shares during the last quarter. Finally, Seven Eight Capital LP purchased a new stake in shares of Western Union during the second quarter worth about $2,288,000. 91.81% of the stock is owned by institutional investors and hedge funds.

Western Union Company Profile

The Western Union Company provides money movement and payment services worldwide. The company operates through Consumer Money Transfer and Consumer Services segments. The Consumer Money Transfer segment facilitates money transfers for international cross-border and intra-country transfers, primarily through a network of retail agent locations, as well as through websites and mobile devices.