The Western Union Company (NYSE:WU) Given Consensus Rating of “Reduce” by Analysts

Shares of The Western Union Company (NYSE:WU) have received a consensus recommendation of “Reduce” from the eleven research firms that are covering the company, MarketBeat reports. Three research analysts have rated the stock with a sell rating and eight have assigned a hold rating to the company. The average twelve-month target price among brokers that have updated their coverage on the stock in the last year is $12.11.

A number of analysts recently commented on WU shares. Susquehanna decreased their price target on Western Union from $13.00 to $12.00 and set a “neutral” rating for the company in a research report on Wednesday, February 5th. StockNews.com upgraded shares of Western Union from a “sell” rating to a “hold” rating in a report on Friday, October 25th. Morgan Stanley reduced their target price on shares of Western Union from $10.00 to $9.00 and set an “underweight” rating for the company in a research report on Wednesday, February 5th. UBS Group lowered their price target on shares of Western Union from $13.50 to $12.00 and set a “neutral” rating on the stock in a report on Thursday, October 24th. Finally, 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 report on Monday, December 9th.

Institutional Trading of Western Union

Several institutional investors and hedge funds have recently modified their holdings of the business. True Wealth Design LLC bought a new position in Western Union in the third quarter valued at $25,000. R Squared Ltd purchased a new position in shares of Western Union in the 4th quarter worth about $25,000. Independence Bank of Kentucky bought a new position in shares of Western Union during the 4th quarter valued at about $28,000. Quarry LP raised its holdings in shares of Western Union by 52.9% during the 2nd quarter. Quarry LP now owns 2,588 shares of the credit services provider’s stock valued at $32,000 after buying an additional 895 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. lifted its position in 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 worth $39,000 after buying an additional 1,522 shares during the last quarter. Hedge funds and other institutional investors own 91.81% of the company’s stock.

Western Union Trading Down 5.5 %

Shares of Western Union stock opened at $10.60 on Monday. The company has a current ratio of 1.20, a quick ratio of 1.10 and a debt-to-equity ratio of 3.04. The stock has a fifty day simple moving average of $10.60 and a 200 day simple moving average of $11.24. Western Union has a 12-month low of $10.04 and a 12-month high of $14.19. The company has a market capitalization of $3.58 billion, a P/E ratio of 3.88, a price-to-earnings-growth ratio of 1.54 and a beta of 0.85.

Western Union (NYSE:WU) last released its quarterly earnings results on Tuesday, February 4th. The credit services provider reported $0.40 earnings per share for the quarter, missing analysts’ consensus estimates of $0.42 by ($0.02). Western Union had a net margin of 22.19% and a return on equity of 96.90%. On average, sell-side analysts anticipate that Western Union will post 1.8 earnings per share for the current fiscal year.

Western Union Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, March 31st. Stockholders of record on Monday, March 17th will be issued a $0.235 dividend. The ex-dividend date is Monday, March 17th. This represents a $0.94 annualized dividend and a dividend yield of 8.87%. Western Union’s payout ratio is currently 34.43%.

Western Union declared that its board has approved 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 purchase up to 27.5% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its shares are undervalued.

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.