Vestcor Inc Takes Position in The Western Union Company (NYSE:WU)

Vestcor Inc acquired a new position in The Western Union Company (NYSE:WU) in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 26,692 shares of the credit services provider’s stock, valued at approximately $283,000.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in WU. True Wealth Design LLC purchased a new position in shares of Western Union in the third quarter worth $25,000. R Squared Ltd bought a new stake in Western Union in the 4th quarter worth about $25,000. Independence Bank of Kentucky purchased a new position in Western Union in the 4th quarter worth about $28,000. Wilmington Savings Fund Society FSB lifted its stake in Western Union by 1,734.7% during the 4th quarter. Wilmington Savings Fund Society FSB now owns 4,862 shares of the credit services provider’s stock valued at $52,000 after acquiring an additional 4,597 shares during the period. Finally, Sound Income Strategies LLC purchased a new stake in shares of Western Union during the 4th quarter valued at about $53,000. 91.81% of the stock is owned by institutional investors.

Western Union Price Performance

NYSE WU opened at $10.66 on Tuesday. The business’s fifty day moving average is $10.60 and its 200 day moving average is $11.03. The Western Union Company has a fifty-two week low of $10.04 and a fifty-two week high of $14.00. The company has a debt-to-equity ratio of 3.04, a quick ratio of 1.10 and a current ratio of 1.20. The company has a market capitalization of $3.60 billion, a PE ratio of 3.90, a price-to-earnings-growth ratio of 1.32 and a beta of 0.79.

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 the consensus estimate of $0.42 by ($0.02). Western Union had a return on equity of 96.90% and a net margin of 22.19%. Sell-side analysts predict that The Western Union Company will post 1.79 earnings per share for the current year.

Western Union declared that its Board of Directors has authorized a stock repurchase program on Friday, December 13th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the credit services provider to buy up to 27.5% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company’s board believes its stock is undervalued.

Western Union Announces Dividend

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. The ex-dividend date of this dividend is Monday, March 17th. This represents a $0.94 dividend on an annualized basis and a dividend yield of 8.82%. Western Union’s dividend payout ratio (DPR) is presently 34.43%.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on WU. Susquehanna decreased their price objective on shares of Western Union from $13.00 to $12.00 and set a “neutral” rating for the company in a report on Wednesday, February 5th. Morgan Stanley cut their target price on shares of Western Union from $10.00 to $9.00 and set an “underweight” rating for the company in a research report on Wednesday, February 5th. Keefe, Bruyette & Woods lowered their price target 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. Barclays dropped their price target on Western Union from $11.00 to $10.00 and set an “underweight” rating on the stock in a research note on Friday, December 13th. Finally, JMP Securities reiterated a “market perform” rating on shares of Western Union in a research report on Thursday, February 6th. Three investment analysts have rated the stock with a sell rating and nine have issued 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.

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.