Royal Bank of Canada Reaffirms “Sector Perform” Rating for Western Union (NYSE:WU)

Western Union (NYSE:WU)‘s stock had its “sector perform” rating reiterated by equities researchers at Royal Bank of Canada in a research report issued to clients and investors on Thursday,Benzinga reports. They presently have a $14.00 price objective on the credit services provider’s stock. Royal Bank of Canada’s price target would indicate a potential upside of 38.27% from the stock’s current price.

Several other analysts have also recently issued reports on WU. Keefe, Bruyette & Woods lowered their price objective on shares of Western Union from $13.00 to $12.00 and set a “market perform” rating for the company in a research note on Monday, December 9th. Susquehanna dropped their price target on Western Union from $13.00 to $12.00 and set a “neutral” rating for the company in a research note on Wednesday, February 5th. Morgan Stanley reduced their price objective 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. JMP Securities reissued a “market perform” rating on shares of Western Union in a research report on Thursday, February 6th. Finally, 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, December 13th. Three research analysts have rated the stock with a sell rating and eight have given a hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $12.11.

Western Union Stock Down 3.6 %

Shares of NYSE WU opened at $10.13 on Thursday. The firm has a market cap of $3.42 billion, a P/E ratio of 3.71, a price-to-earnings-growth ratio of 1.32 and a beta of 0.79. 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 has a 1 year low of $9.92 and a 1 year high of $13.93. The firm’s 50 day moving average price is $10.64 and its 200 day moving average price is $10.90.

Western Union (NYSE:WU) last released its earnings results 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 net margin of 22.19% and a return on equity of 96.90%. As a group, sell-side analysts anticipate that Western Union will post 1.79 earnings per share for the current year.

Western Union announced that its Board of Directors has authorized a share repurchase plan on Friday, December 13th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the credit services provider to reacquire up to 27.5% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s leadership believes its shares are undervalued.

Hedge Funds Weigh In On Western Union

A number of institutional investors have recently made changes to their positions in the business. R Squared Ltd bought a new stake in shares of Western Union in the fourth quarter worth $25,000. Independence Bank of Kentucky bought a new stake in shares of Western Union in the 4th quarter worth about $28,000. McIlrath & Eck LLC raised its stake in shares of 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 valued at $33,000 after purchasing an additional 2,886 shares in the last quarter. Huntington National Bank lifted its position in shares of Western Union by 662.7% during the fourth quarter. Huntington National Bank now owns 3,722 shares of the credit services provider’s stock worth $39,000 after purchasing an additional 3,234 shares during the last quarter. Finally, Coppell Advisory Solutions LLC grew its stake in Western Union by 267.5% in the fourth quarter. Coppell Advisory Solutions LLC now owns 3,833 shares of the credit services provider’s stock worth $41,000 after purchasing an additional 2,790 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.