The Western Union Company (NYSE:WU) Receives Average Rating of “Reduce” from Analysts

The Western Union Company (NYSE:WU) has been assigned an average recommendation of “Reduce” from the eleven analysts that are presently covering the company, Marketbeat Ratings reports. Three investment analysts have rated the stock with a sell rating and eight have given a hold rating to the company. The average 12 month price target among brokers that have covered the stock in the last year is $12.11.

Several equities analysts recently issued reports on WU shares. JMP Securities reissued a “market perform” rating on shares of Western Union in a research note on Thursday, February 6th. Morgan Stanley reduced their price target on Western Union from $10.00 to $9.00 and set an “underweight” rating on the stock in a research note on Wednesday, February 5th. Barclays lowered their price objective on Western Union from $11.00 to $10.00 and set an “underweight” rating for the company in a research report on Friday, December 13th. Susquehanna reduced their target price on Western Union from $13.00 to $12.00 and set a “neutral” rating on the stock in a research report on Wednesday, February 5th. Finally, Keefe, Bruyette & Woods decreased their price target on Western Union from $13.00 to $12.00 and set a “market perform” rating on the stock in a research note on Monday, December 9th.

Western Union Stock Performance

Western Union stock opened at $10.76 on Friday. Western Union has a fifty-two week low of $10.04 and a fifty-two week high of $14.19. The company has a market capitalization of $3.63 billion, a price-to-earnings ratio of 3.94, a PEG ratio of 1.32 and a beta of 0.85. The stock has a fifty day moving average of $10.52 and a two-hundred day moving average of $11.12. The company has a debt-to-equity ratio of 3.04, a quick ratio of 1.10 and a current ratio of 1.20.

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 analysts’ consensus estimates of $0.42 by ($0.02). Western Union had a return on equity of 96.90% and a net margin of 22.19%. On average, analysts anticipate that Western Union will post 1.79 EPS for the current fiscal year.

Western Union announced that its board has initiated a share buyback 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 shares through open market purchases. Shares buyback programs are often an indication that the company’s board believes its shares are undervalued.

Western Union Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, March 31st. Stockholders of record on Monday, March 17th will be paid a $0.235 dividend. This represents a $0.94 annualized dividend and a dividend yield of 8.74%. The ex-dividend date of this dividend is Monday, March 17th. Western Union’s dividend payout ratio is currently 34.43%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. True Wealth Design LLC purchased a new stake in shares of Western Union in the third quarter worth about $25,000. R Squared Ltd purchased a new stake in shares of Western Union during the 4th quarter valued at about $25,000. Independence Bank of Kentucky acquired a new position in Western Union during the 4th quarter worth approximately $28,000. McIlrath & Eck LLC boosted its holdings in Western Union by 1,487.6% in the 4th quarter. McIlrath & Eck LLC now owns 3,080 shares of the credit services provider’s stock worth $33,000 after acquiring an additional 2,886 shares during the period. Finally, Huntington National Bank grew its position in Western Union by 662.7% in the fourth quarter. Huntington National Bank now owns 3,722 shares of the credit services provider’s stock valued at $39,000 after acquiring an additional 3,234 shares in the last quarter. 91.81% of the stock is owned by institutional investors and hedge funds.

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.