Principal Financial Group Inc. Lowers Holdings in The Western Union Company (NYSE:WU)

Principal Financial Group Inc. reduced its stake in shares of The Western Union Company (NYSE:WU) by 30.5% in the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 783,934 shares of the credit services provider’s stock after selling 343,369 shares during the quarter. Principal Financial Group Inc. owned 0.23% of Western Union worth $9,352,000 at the end of the most recent reporting period.

Other large investors also recently bought and sold shares of the company. Mackenzie Financial Corp boosted its stake in shares of Western Union by 30.7% during the 2nd quarter. Mackenzie Financial Corp now owns 348,850 shares of the credit services provider’s stock worth $4,263,000 after acquiring an additional 82,018 shares in the last quarter. Foundry Partners LLC purchased a new position in Western Union during the third quarter worth approximately $8,124,000. Kingsview Wealth Management LLC grew its holdings in Western Union by 293.3% in the third quarter. Kingsview Wealth Management LLC now owns 198,002 shares of the credit services provider’s stock valued at $2,362,000 after purchasing an additional 147,658 shares during the period. Citigroup Inc. increased its position in shares of Western Union by 19.0% in the third quarter. Citigroup Inc. now owns 523,676 shares of the credit services provider’s stock valued at $6,247,000 after buying an additional 83,715 shares in the last quarter. Finally, OLD National Bancorp IN raised its stake in shares of Western Union by 11.9% during the 3rd quarter. OLD National Bancorp IN now owns 704,054 shares of the credit services provider’s stock worth $8,399,000 after buying an additional 74,742 shares during the period. 91.81% of the stock is owned by institutional investors and hedge funds.

Western Union Trading Down 1.0 %

Shares of Western Union stock opened at $10.57 on Tuesday. The company has a current ratio of 1.10, a quick ratio of 1.10 and a debt-to-equity ratio of 3.96. The company has a fifty day simple moving average of $10.88 and a 200-day simple moving average of $11.63. The stock has a market cap of $3.57 billion, a price-to-earnings ratio of 5.42, a PEG ratio of 1.51 and a beta of 0.86. The Western Union Company has a 12-month low of $10.39 and a 12-month high of $14.19.

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

Western Union announced that its Board of Directors has authorized a stock buyback program 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 shares through open market purchases. Shares buyback programs are typically an indication that the company’s board of directors believes its shares are undervalued.

Western Union Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 31st. Investors of record on Monday, December 23rd will be given a $0.235 dividend. This represents a $0.94 annualized dividend and a yield of 8.89%. The ex-dividend date is Monday, December 23rd. Western Union’s dividend payout ratio (DPR) is presently 48.21%.

Wall Street Analyst Weigh In

WU has been the subject of a number of research analyst reports. StockNews.com upgraded shares of Western Union from a “sell” rating to a “hold” rating in a research report on Friday, October 25th. Barclays decreased 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. UBS Group cut their price objective on Western Union from $13.50 to $12.00 and set a “neutral” rating for the company in a research note on Thursday, October 24th. Finally, Keefe, Bruyette & Woods decreased their target price on Western Union from $13.00 to $12.00 and set a “market perform” rating on the stock in a research report on Monday, December 9th. Three research analysts have rated the stock with a sell rating and nine have given a hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $12.63.

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.