Western Union (NYSE:WU) Sets New 1-Year Low – Time to Sell?

Shares of The Western Union Company (NYSE:WU) reached a new 52-week low during mid-day trading on Wednesday . The company traded as low as $10.26 and last traded at $10.30, with a volume of 462717 shares changing hands. The stock had previously closed at $10.43.

Wall Street Analysts Forecast Growth

WU has been the subject of several recent research reports. UBS Group lowered their price target on Western Union from $13.50 to $12.00 and set a “neutral” rating for the company in a report on Thursday, October 24th. Keefe, Bruyette & Woods lowered their target price on 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. StockNews.com upgraded Western Union from a “sell” rating to a “hold” rating in a report on Friday, October 25th. Finally, Barclays dropped their price objective on shares of Western Union from $11.00 to $10.00 and set an “underweight” rating on the stock in a research note on Friday, December 13th. Two investment analysts have rated the stock with a sell rating and nine have assigned a hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $12.63.

Western Union Stock Down 0.7 %

The firm has a market cap of $3.50 billion, a price-to-earnings ratio of 5.31, a P/E/G ratio of 1.51 and a beta of 0.85. The company has a debt-to-equity ratio of 3.96, a current ratio of 1.10 and a quick ratio of 1.10. The firm’s fifty day moving average is $10.79 and its two-hundred day moving average is $11.57.

Western Union (NYSE:WU) last issued its quarterly earnings results on Wednesday, October 23rd. The credit services provider reported $0.46 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.44 by $0.02. The company had revenue of $1.04 billion for the quarter, compared to analysts’ expectations of $1.03 billion. Western Union had a return on equity of 120.39% and a net margin of 16.07%. The firm’s revenue for the quarter was down 5.6% on a year-over-year basis. During the same period last year, the firm earned $0.43 EPS. On average, sell-side analysts expect that The Western Union Company will post 1.77 EPS for the current fiscal year.

Western Union Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, December 31st. Stockholders of record on Monday, December 23rd were paid a dividend of $0.235 per share. This represents a $0.94 annualized dividend and a dividend yield of 9.07%. The ex-dividend date was Monday, December 23rd. Western Union’s dividend payout ratio is presently 48.21%.

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

Institutional Investors Weigh In On Western Union

A number of institutional investors have recently bought and sold shares of WU. True Wealth Design LLC bought a new position in Western Union during the third quarter valued at approximately $25,000. Quarry LP lifted its stake in shares of Western Union by 52.9% in the 2nd quarter. Quarry LP now owns 2,588 shares of the credit services provider’s stock valued at $32,000 after purchasing an additional 895 shares during the last quarter. Northwestern Mutual Wealth Management Co. increased its position in Western Union by 89.3% during the second 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. Abich Financial Wealth Management LLC raised its holdings in 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 buying an additional 1,024 shares in the last quarter. Finally, Tompkins Financial Corp acquired a new stake in shares of Western Union in the third quarter worth about $60,000. 91.81% of the stock is currently owned by institutional investors and hedge funds.

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.