Western Union (NYSE:WU) Reaches New 1-Year Low – Here’s Why

The Western Union Company (NYSE:WU)’s share price hit a new 52-week low during mid-day trading on Thursday . The stock traded as low as $9.00 and last traded at $10.00, with a volume of 12826174 shares. The stock had previously closed at $9.09.

Analysts Set New Price Targets

A number of equities research analysts recently commented on WU shares. Royal Bank of Canada reiterated a “sector perform” rating and set a $14.00 price target on shares of Western Union in a report on Thursday, April 3rd. Morgan Stanley lowered 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. 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 note on Friday, December 13th. Susquehanna lowered 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. Finally, JMP Securities reiterated a “market perform” rating on shares of Western Union in a research report on Thursday, February 6th. Three equities research analysts have rated the stock with a sell rating and eight have given a hold rating to the stock. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $12.11.

Western Union Stock Performance

The company has a debt-to-equity ratio of 3.04, a current ratio of 1.20 and a quick ratio of 1.10. The company has a market capitalization of $3.26 billion, a PE ratio of 3.56, a PEG ratio of 1.32 and a beta of 0.69. The company has a 50 day moving average of $10.54 and a two-hundred day moving average of $10.79.

Western Union (NYSE:WU) last posted its quarterly earnings data on Tuesday, February 4th. The credit services provider reported $0.40 EPS for the quarter, missing the consensus estimate of $0.42 by ($0.02). Western Union had a return on equity of 96.90% and a net margin of 22.19%. As a group, equities research analysts predict that The Western Union Company will post 1.79 earnings per share for the current year.

Western Union Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, March 31st. Shareholders of record on Monday, March 17th were paid a dividend of $0.235 per share. This represents a $0.94 dividend on an annualized basis and a yield of 9.67%. The ex-dividend date was Monday, March 17th. Western Union’s payout ratio is 34.43%.

Western Union declared that its Board of Directors has authorized a stock repurchase plan on Friday, December 13th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the credit services provider to repurchase up to 27.5% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s board of directors believes its shares are undervalued.

Hedge Funds Weigh In On Western Union

Several large investors have recently modified their holdings of the stock. Price T Rowe Associates Inc. MD increased its stake in Western Union by 18.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 28,983,265 shares of the credit services provider’s stock valued at $307,224,000 after purchasing an additional 4,426,126 shares in the last quarter. Invesco Ltd. grew its holdings in shares of Western Union by 202.9% during the fourth quarter. Invesco Ltd. now owns 5,661,732 shares of the credit services provider’s stock valued at $60,014,000 after buying an additional 3,792,683 shares during the last quarter. AQR Capital Management LLC increased its position in shares of Western Union by 39.0% during the fourth quarter. AQR Capital Management LLC now owns 11,206,431 shares of the credit services provider’s stock valued at $118,788,000 after acquiring an additional 3,146,395 shares in the last quarter. Brickwood Asset Management LLP purchased a new position in Western Union in the 4th quarter worth approximately $31,177,000. Finally, Schroder Investment Management Group lifted its position in Western Union by 32.1% in the 4th quarter. Schroder Investment Management Group now owns 9,021,308 shares of the credit services provider’s stock valued at $95,626,000 after acquiring an additional 2,194,403 shares in the last quarter. Hedge funds and other institutional investors own 91.81% of the company’s stock.

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.