Western Union (NYSE:WU) Shares Gap Up Following Dividend Announcement

The Western Union Company (NYSE:WU)’s stock price gapped up before the market opened on Monday after the company announced a dividend. The stock had previously closed at $10.76, but opened at $11.08. Western Union shares last traded at $11.16, with a volume of 1,040,956 shares.

The newly announced dividend which will be paid on Tuesday, December 31st. Investors of record on Monday, December 23rd will be issued a $0.235 dividend. This represents a $0.94 annualized dividend and a yield of 8.40%. The ex-dividend date of this dividend is Monday, December 23rd. Western Union’s dividend payout ratio (DPR) is presently 48.21%.

Analysts Set New Price Targets

Several equities analysts recently commented on the company. Keefe, Bruyette & Woods dropped their target price on Western Union from $13.00 to $12.00 and set a “market perform” rating on the stock in a report on Monday, December 9th. StockNews.com raised Western Union from a “sell” rating to a “hold” rating in a report on Friday, October 25th. JPMorgan Chase & Co. dropped their target price on Western Union from $14.00 to $12.00 and set an “underweight” rating on the stock in a report on Tuesday, August 20th. Barclays decreased their price objective on shares of Western Union from $11.00 to $10.00 and set an “underweight” rating for the company in a research note on Friday. Finally, UBS Group decreased their price objective on shares of Western Union from $13.50 to $12.00 and set a “neutral” rating for the company in a research note on Thursday, October 24th. Three equities research analysts have rated the stock with a sell rating and nine have issued a hold rating to the company. Based on data from MarketBeat, Western Union presently has an average rating of “Hold” and a consensus target price of $12.63.

Western Union Stock Up 3.9 %

The firm has a market cap of $3.78 billion, a price-to-earnings ratio of 5.74, a P/E/G ratio of 1.51 and a beta of 0.86. The firm’s 50 day moving average price is $11.10 and its two-hundred day moving average price is $11.79. The company has a debt-to-equity ratio of 3.96, a current ratio of 1.10 and a quick ratio of 1.10.

Western Union (NYSE:WU) last announced its earnings results on Wednesday, October 23rd. The credit services provider reported $0.46 earnings per share for the quarter, topping the consensus estimate of $0.44 by $0.02. Western Union had a net margin of 16.07% and a return on equity of 120.39%. The business had revenue of $1.04 billion during the quarter, compared to the consensus estimate of $1.03 billion. During the same quarter in the prior year, the firm earned $0.43 earnings per share. The business’s quarterly revenue was down 5.6% compared to the same quarter last year. As a group, sell-side analysts forecast that The Western Union Company will post 1.77 earnings per share for the current fiscal year.

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

Institutional Investors Weigh In On Western Union

Hedge funds have recently made changes to their positions in the business. True Wealth Design LLC acquired a new stake in Western Union in the third quarter valued at about $25,000. Quarry LP increased its holdings in Western Union by 52.9% in the second 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. Northwestern Mutual Wealth Management Co. increased its holdings in Western Union by 89.3% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 3,226 shares of the credit services provider’s stock valued at $39,000 after buying an additional 1,522 shares in the last quarter. Abich Financial Wealth Management LLC increased its holdings in Western Union by 31.1% in 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 purchased a new position in Western Union in the third quarter valued at about $60,000. Institutional investors and hedge funds own 91.81% of the company’s stock.

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.