KLP Kapitalforvaltning AS Makes New Investment in The Western Union Company (NYSE:WU)

KLP Kapitalforvaltning AS acquired a new stake in The Western Union Company (NYSE:WU) in the fourth quarter, Holdings Channel.com reports. The firm acquired 149,600 shares of the credit services provider’s stock, valued at approximately $1,586,000.

Several other large investors have also made changes to their positions in WU. True Wealth Design LLC purchased a new position in Western Union in the 3rd quarter valued at about $25,000. R Squared Ltd purchased a new position in shares of Western Union in the fourth quarter valued at approximately $25,000. Independence Bank of Kentucky purchased a new position in shares of Western Union in the fourth quarter valued at approximately $28,000. Wilmington Savings Fund Society FSB boosted its stake in shares of Western Union by 1,734.7% in the fourth quarter. Wilmington Savings Fund Society FSB now owns 4,862 shares of the credit services provider’s stock worth $52,000 after acquiring an additional 4,597 shares during the last quarter. Finally, Sound Income Strategies LLC purchased a new stake in shares of Western Union during the fourth quarter worth approximately $53,000. 91.81% of the stock is owned by institutional investors and hedge funds.

Western Union Stock Performance

Shares of Western Union stock opened at $10.48 on Friday. The business’s fifty day simple moving average is $10.63 and its 200-day simple moving average is $10.95. The Western Union Company has a 52 week low of $10.04 and a 52 week high of $13.95. The company has a quick ratio of 1.10, a current ratio of 1.20 and a debt-to-equity ratio of 3.04. The firm has a market cap of $3.54 billion, a PE ratio of 3.84, a price-to-earnings-growth ratio of 1.32 and a beta of 0.79.

Western Union (NYSE:WU) last released its quarterly earnings results on Tuesday, February 4th. The credit services provider reported $0.40 EPS for the quarter, missing analysts’ consensus estimates of $0.42 by ($0.02). Western Union had a return on equity of 96.90% and a net margin of 22.19%. Equities analysts forecast that The Western Union Company will post 1.79 earnings per share for the current year.

Western Union Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, March 31st. Shareholders of record on Monday, March 17th will be paid a $0.235 dividend. The ex-dividend date is Monday, March 17th. This represents a $0.94 annualized dividend and a dividend yield of 8.97%. Western Union’s dividend payout ratio (DPR) is 34.43%.

Western Union announced that its Board of Directors has authorized a stock buyback program 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 buy up to 27.5% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board of directors believes its shares are undervalued.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on WU. Susquehanna lowered their target price on shares of Western Union from $13.00 to $12.00 and set a “neutral” rating on the stock in a research note on Wednesday, February 5th. Morgan Stanley dropped their price objective on shares of Western Union from $10.00 to $9.00 and set an “underweight” rating for the company in a research note on Wednesday, February 5th. Keefe, Bruyette & Woods decreased their target price on shares of 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. JMP Securities restated a “market perform” rating on shares of Western Union in a research report on Thursday, February 6th. Finally, Barclays cut their price target on Western Union from $11.00 to $10.00 and set an “underweight” rating for the company in a report on Friday, December 13th. Three analysts have rated the stock with a sell rating and eight have given a hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $12.11.

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.