Western Union (NYSE:WU) Reaches New 52-Week Low – Time to Sell?

Shares of The Western Union Company (NYSE:WU) reached a new 52-week low on Friday . The company traded as low as $9.92 and last traded at $10.17, with a volume of 3474912 shares changing hands. The stock had previously closed at $10.50.

Analysts Set New Price Targets

Several equities research analysts have recently commented on WU shares. Susquehanna reduced their price target on shares of Western Union from $13.00 to $12.00 and set a “neutral” rating for the company in a research report on Wednesday, February 5th. JMP Securities reaffirmed a “market perform” rating on shares of Western Union in a report on Thursday, February 6th. Barclays dropped their price target 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. Royal Bank of Canada reaffirmed a “sector perform” rating and issued a $14.00 target price on shares of Western Union in a report on Thursday. Finally, Morgan Stanley cut their price objective on Western Union from $10.00 to $9.00 and set an “underweight” rating for the company in a research note on Wednesday, February 5th. Three research analysts have rated the stock with a sell rating and eight have given a hold rating to the company’s stock. According to MarketBeat.com, Western Union currently has a consensus rating of “Hold” and an average target price of $12.11.

Western Union Stock Performance

The firm’s 50 day simple moving average is $10.64 and its 200 day simple moving average is $10.89. The firm has a market cap of $3.42 billion, a PE ratio of 3.71, a PEG ratio of 1.32 and a beta of 0.79. The company has a current ratio of 1.20, a quick ratio of 1.10 and a debt-to-equity ratio of 3.04.

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 the consensus estimate 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, research analysts forecast that The Western Union Company will post 1.79 EPS for the current fiscal year.

Western Union Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, March 31st. Shareholders of record on Monday, March 17th were given a dividend of $0.235 per share. The ex-dividend date of this dividend was Monday, March 17th. This represents a $0.94 annualized dividend and a yield of 9.28%. Western Union’s dividend payout ratio (DPR) is currently 34.43%.

Western Union declared that its Board of Directors has approved a share buyback plan on Friday, December 13th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the credit services provider to buy up to 27.5% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s management believes its shares are undervalued.

Institutional Investors Weigh In On Western Union

Several large investors have recently added to or reduced their stakes in WU. Captrust Financial Advisors boosted its holdings in shares of Western Union by 4.6% in the 4th quarter. Captrust Financial Advisors now owns 22,298 shares of the credit services provider’s stock worth $236,000 after purchasing an additional 982 shares during the period. Pacer Advisors Inc. increased its position in Western Union by 2.2% during the fourth quarter. Pacer Advisors Inc. now owns 50,387 shares of the credit services provider’s stock valued at $534,000 after acquiring an additional 1,072 shares during the last quarter. Tidal Investments LLC raised its stake in shares of Western Union by 1.4% in the third quarter. Tidal Investments LLC now owns 88,410 shares of the credit services provider’s stock valued at $1,055,000 after acquiring an additional 1,230 shares during the period. Focus Partners Wealth raised its stake in shares of Western Union by 11.7% in the fourth quarter. Focus Partners Wealth now owns 14,233 shares of the credit services provider’s stock valued at $151,000 after acquiring an additional 1,493 shares during the period. Finally, Exchange Traded Concepts LLC lifted its holdings in shares of Western Union by 2.6% in the 4th quarter. Exchange Traded Concepts LLC now owns 61,606 shares of the credit services provider’s stock worth $653,000 after acquiring an additional 1,560 shares during the last quarter. 91.81% of the stock is owned by institutional investors.

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.