The Western Union Company (NYSE:WU) Receives $12.63 Consensus PT from Analysts

Shares of The Western Union Company (NYSE:WU) have earned a consensus recommendation of “Reduce” from the eleven brokerages that are presently covering the company, MarketBeat.com reports. Three research analysts have rated the stock with a sell recommendation and eight have given a hold recommendation to the company. The average 1 year price target among analysts that have issued ratings on the stock in the last year is $12.63.

Several analysts have weighed in on WU shares. Barclays dropped their price target on Western Union from $11.00 to $10.00 and set an “underweight” rating on the stock in a research note on Friday, December 13th. Keefe, Bruyette & Woods cut their price target on shares of Western Union from $13.00 to $12.00 and set a “market perform” rating on the stock in a report on Monday, December 9th. StockNews.com upgraded shares of Western Union from a “sell” rating to a “hold” rating in a research note on Friday, October 25th. Finally, UBS Group cut their price objective on shares of Western Union from $13.50 to $12.00 and set a “neutral” rating on the stock in a research note on Thursday, October 24th.

Western Union Price Performance

Shares of NYSE WU opened at $10.70 on Friday. Western Union has a fifty-two week low of $10.51 and a fifty-two week high of $14.19. The company has a debt-to-equity ratio of 3.96, a quick ratio of 1.10 and a current ratio of 1.10. The company has a market cap of $3.61 billion, a PE ratio of 5.49, a P/E/G ratio of 1.51 and a beta of 0.86. The business has a 50-day simple moving average of $11.04 and a two-hundred day simple moving average of $11.75.

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

Western Union declared that its Board of Directors has authorized a stock buyback program on Friday, December 13th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the credit services provider to repurchase up to 27.5% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s board of directors believes its stock is undervalued.

Western Union Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 31st. Shareholders of record on Monday, December 23rd will be issued a $0.235 dividend. This represents a $0.94 annualized dividend and a yield of 8.79%. The ex-dividend date is Monday, December 23rd. Western Union’s payout ratio is currently 48.21%.

Institutional Investors Weigh In On Western Union

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

About Western Union

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.