The Western Union Company (NYSE:WU) Receives Average Recommendation of “Reduce” from Analysts

Shares of The Western Union Company (NYSE:WU) have been assigned an average rating of “Reduce” from the ten ratings firms that are presently covering the firm, MarketBeat reports. Two equities research analysts have rated the stock with a sell rating and eight have issued a hold rating on the company. The average 12-month price objective among brokerages that have issued a report on the stock in the last year is $12.63.

A number of brokerages recently weighed in on WU. Barclays decreased their price target 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. StockNews.com raised Western Union from a “sell” rating to a “hold” rating in a research note on Friday, October 25th. Keefe, Bruyette & Woods reduced their price objective on Western Union from $13.00 to $12.00 and set a “market perform” rating for the company in a research note on Monday, December 9th. Finally, UBS Group decreased their price objective on Western Union from $13.50 to $12.00 and set a “neutral” rating on the stock in a report on Thursday, October 24th.

Western Union Stock Up 0.1 %

Shares of WU opened at $10.44 on Thursday. The firm has a market cap of $3.53 billion, a P/E ratio of 5.35, a PEG ratio of 1.51 and a beta of 0.85. Western Union has a 12 month low of $10.26 and a 12 month high of $14.19. The stock’s 50 day moving average is $10.78 and its two-hundred day moving average is $11.55. The company has a current ratio of 1.10, a quick ratio of 1.10 and a debt-to-equity ratio of 3.96.

Western Union (NYSE:WU) last issued its quarterly earnings results on Wednesday, October 23rd. The credit services provider reported $0.46 EPS for the quarter, topping the consensus estimate of $0.44 by $0.02. The company had revenue of $1.04 billion during the quarter, compared to analyst estimates of $1.03 billion. Western Union had a net margin of 16.07% and a return on equity of 120.39%. The firm’s revenue was down 5.6% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.43 EPS. Analysts predict that Western Union will post 1.77 earnings per share for the current fiscal year.

Western Union announced that its board has initiated a stock buyback program on Friday, December 13th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the credit services provider to purchase up to 27.5% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s management believes its shares are undervalued.

Western Union Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, December 31st. Stockholders of record on Monday, December 23rd were given a dividend of $0.235 per share. The ex-dividend date was Monday, December 23rd. This represents a $0.94 annualized dividend and a dividend yield of 9.00%. Western Union’s payout ratio is 48.21%.

Institutional Trading of Western Union

A number of hedge funds and other institutional investors have recently made changes to their positions in WU. True Wealth Design LLC purchased a new stake in Western Union in the 3rd quarter valued at about $25,000. Quarry LP increased its position in shares of Western Union by 52.9% during the second quarter. Quarry LP now owns 2,588 shares of the credit services provider’s stock valued at $32,000 after acquiring an additional 895 shares during the last quarter. Northwestern Mutual Wealth Management Co. raised its stake in shares of Western Union by 89.3% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 3,226 shares of the credit services provider’s stock valued at $39,000 after acquiring an additional 1,522 shares during the period. Abich Financial Wealth Management LLC lifted its holdings in shares of Western Union by 31.1% in the 2nd quarter. Abich Financial Wealth Management LLC now owns 4,316 shares of the credit services provider’s stock worth $53,000 after acquiring an additional 1,024 shares during the last quarter. Finally, Tompkins Financial Corp acquired a new stake in Western Union in the 3rd quarter valued at approximately $60,000. Institutional investors and hedge funds own 91.81% of the company’s stock.

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.