Western Union (NYSE:WU) Reaches New 12-Month Low – Should You Sell?

The Western Union Company (NYSE:WU)’s share price hit a new 52-week low during trading on Wednesday . The stock traded as low as $10.19 and last traded at $10.30, with a volume of 552896 shares. The stock had previously closed at $10.40.

Analyst Ratings Changes

WU has been the subject of a number of research analyst reports. StockNews.com raised Western Union from a “sell” rating to a “hold” rating in a research note on Friday, October 25th. Barclays dropped their target price on shares of Western Union from $11.00 to $10.00 and set an “underweight” rating on the stock in a report on Friday, December 13th. Keefe, Bruyette & Woods reduced their target price on shares of 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 reduced their price target on Western Union from $13.50 to $12.00 and set a “neutral” rating for the company in a research report on Thursday, October 24th. Two analysts have rated the stock with a sell rating and nine have given a hold rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $12.63.

Western Union Price Performance

The company has a current ratio of 1.10, a quick ratio of 1.10 and a debt-to-equity ratio of 3.96. The firm has a market capitalization of $3.47 billion, a price-to-earnings ratio of 5.26, a P/E/G ratio of 1.39 and a beta of 0.85. The company’s 50 day moving average is $10.71 and its 200-day moving average is $11.42.

Western Union (NYSE:WU) last issued its 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. Western Union had a return on equity of 120.39% and a net margin of 16.07%. The company had revenue of $1.04 billion during the quarter, compared to the consensus estimate of $1.03 billion. During the same period in the previous year, the company posted $0.43 EPS. The firm’s revenue for the quarter was down 5.6% compared to the same quarter last year. Equities research analysts anticipate that The Western Union Company will post 1.77 earnings per share for the current year.

Western Union Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, December 31st. Shareholders 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 dividend on an annualized basis and a yield of 9.16%. Western Union’s dividend payout ratio (DPR) is 48.21%.

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

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. True Wealth Design LLC acquired a new position in shares of Western Union in the third quarter valued at about $25,000. R Squared Ltd bought a new position in shares of Western Union in the 4th quarter valued at $25,000. Quarry LP grew its position in Western Union by 52.9% in 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. increased its position 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 purchasing an additional 1,522 shares in the last quarter. Finally, Abich Financial Wealth Management LLC boosted its position in Western Union by 31.1% in 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 buying an additional 1,024 shares in the last quarter. 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.