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

Shares of The Western Union Company (NYSE:WU) have been assigned a consensus rating of “Reduce” from the ten ratings firms that are currently covering the stock, MarketBeat.com reports. Three equities research analysts have rated the stock with a sell recommendation and seven have issued a hold recommendation on the company. The average twelve-month price target among brokers that have issued ratings on the stock in the last year is $12.11.

A number of analysts have recently issued reports on the stock. Morgan Stanley cut their price target on shares of Western Union from $10.00 to $9.00 and set an “underweight” rating for the company in a report on Wednesday, February 5th. 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. Barclays lowered their price target on Western Union from $11.00 to $10.00 and set an “underweight” rating for the company in a report on Friday, December 13th. JMP Securities restated a “market perform” rating on shares of Western Union in a report on Thursday, February 6th. Finally, Susquehanna dropped their price target on shares of Western Union from $13.00 to $12.00 and set a “neutral” rating for the company in a research report on Wednesday, February 5th.

Western Union Price Performance

Western Union stock opened at $10.61 on Tuesday. The company has a fifty day simple moving average of $10.63 and a 200-day simple moving average of $10.93. The company has a quick ratio of 1.10, a current ratio of 1.20 and a debt-to-equity ratio of 3.04. The firm has a market capitalization of $3.58 billion, a price-to-earnings ratio of 3.88, a PEG ratio of 1.32 and a beta of 0.79. Western Union has a 52-week low of $10.04 and a 52-week high of $13.95.

Western Union (NYSE:WU) last released 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 net margin of 22.19% and a return on equity of 96.90%. On average, equities analysts anticipate that Western Union will post 1.79 EPS for the current fiscal year.

Western Union declared that its board has initiated a stock 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 purchase up to 27.5% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s board believes its stock is undervalued.

Western Union Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, March 31st. Shareholders of record on Monday, March 17th were paid a $0.235 dividend. This represents a $0.94 dividend on an annualized basis and a yield of 8.86%. The ex-dividend date was Monday, March 17th. Western Union’s dividend payout ratio is presently 34.43%.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in WU. Empowered Funds LLC increased its stake in Western Union by 52.2% in the third quarter. Empowered Funds LLC now owns 15,433 shares of the credit services provider’s stock valued at $184,000 after purchasing an additional 5,292 shares during the last quarter. Pathstone Holdings LLC grew its position in shares of Western Union by 90.8% in the 3rd quarter. Pathstone Holdings LLC now owns 162,403 shares of the credit services provider’s stock valued at $1,937,000 after buying an additional 77,290 shares during the last quarter. Citigroup Inc. raised its stake in Western Union by 19.0% during the 3rd quarter. Citigroup Inc. now owns 523,676 shares of the credit services provider’s stock worth $6,247,000 after acquiring an additional 83,715 shares in the last quarter. Kingsview Wealth Management LLC lifted its position 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 acquiring an additional 147,658 shares during the last quarter. Finally, Algert Global LLC boosted its stake in Western Union by 48.7% in the third quarter. Algert Global LLC now owns 284,904 shares of the credit services provider’s stock valued at $3,399,000 after acquiring an additional 93,280 shares in the last quarter. Hedge funds and other institutional investors 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.