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

The Western Union Company (NYSE:WU)’s stock price reached a new 52-week low during trading on Tuesday . The stock 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.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on WU. UBS Group dropped their price target on shares of Western Union from $13.50 to $12.00 and set a “neutral” rating on the stock in a research report on Thursday, October 24th. Barclays cut their target price on Western Union from $11.00 to $10.00 and set an “underweight” rating on the stock in a research report on Friday, December 13th. StockNews.com raised Western Union from a “sell” rating to a “hold” rating in a research report on Friday, October 25th. Finally, 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. Two investment analysts have rated the stock with a sell rating and nine have issued a hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $12.63.

Western Union Stock Up 1.0 %

The company has a market capitalization of $3.50 billion, a PE ratio of 5.32, a P/E/G ratio of 1.51 and a beta of 0.85. The stock’s fifty day moving average is $10.75 and its two-hundred day moving average is $11.50. 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 released its earnings results on Wednesday, October 23rd. The credit services provider reported $0.46 earnings per share 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 firm had revenue of $1.04 billion for the quarter, compared to analysts’ expectations of $1.03 billion. During the same period in the previous year, the company earned $0.43 earnings per share. The company’s quarterly revenue was down 5.6% on a year-over-year basis. As a group, analysts predict that The Western Union Company will post 1.77 EPS for the current year.

Western Union Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, December 31st. Shareholders of record on Monday, December 23rd were paid a $0.235 dividend. The ex-dividend date was Monday, December 23rd. This represents a $0.94 annualized dividend and a dividend yield of 9.06%. Western Union’s payout ratio is presently 48.21%.

Western Union declared that its board has authorized a stock repurchase 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 reacquire up to 27.5% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s board believes its shares are undervalued.

Institutional Investors Weigh In On Western Union

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. State Street Corp boosted its holdings in shares of Western Union by 0.4% in the third quarter. State Street Corp now owns 12,926,192 shares of the credit services provider’s stock worth $154,209,000 after acquiring an additional 52,081 shares during the period. Geode Capital Management LLC boosted its stake in Western Union by 0.4% in the 3rd quarter. Geode Capital Management LLC now owns 7,179,698 shares of the credit services provider’s stock worth $85,671,000 after purchasing an additional 25,458 shares during the period. Millennium Management LLC increased its position in shares of Western Union by 62.8% during the second quarter. Millennium Management LLC now owns 3,730,450 shares of the credit services provider’s stock valued at $45,586,000 after buying an additional 1,439,310 shares during the period. Marshall Wace LLP lifted its holdings in shares of Western Union by 52.0% in the second quarter. Marshall Wace LLP now owns 3,337,466 shares of the credit services provider’s stock worth $40,784,000 after buying an additional 1,142,400 shares in the last quarter. Finally, Robeco Institutional Asset Management B.V. boosted its position in shares of Western Union by 4.7% in the third quarter. Robeco Institutional Asset Management B.V. now owns 1,880,800 shares of the credit services provider’s stock valued at $22,438,000 after acquiring an additional 84,579 shares during the period. 91.81% of the stock is currently owned by institutional investors.

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.