Citigroup Begins Coverage on Western Union (NYSE:WU)

Key Points

• Citigroup has initiated coverage on Western Union (NYSE:WU) with a "neutral" rating and a price target of $9.00, indicating a potential upside of 10.91% from the stock's previous close.
• Western Union recently reported earnings of $0.42 per share, missing estimates and showing a 3.8% decline in revenue year-over-year.
• Investor interest is increasing, with CEO Devin Mcgranahan purchasing 176,470 shares, marking a significant boost in his ownership stake in the company.

Stock analysts at Citigroup initiated coverage on shares of Western Union (NYSE:WU - Get Free Report) in a research report issued to clients and investors on Wednesday,Benzinga reports. The firm set a "neutral" rating and a $9.00 price target on the credit services provider's stock. Citigroup's target price points to a potential upside of 10.91% from the company's previous close.

Several other analysts have also issued reports on WU. Weiss Ratings raised Western Union from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Wednesday, October 8th. Susquehanna dropped their price objective on shares of Western Union from $11.00 to $9.00 and set a "neutral" rating for the company in a research note on Tuesday, July 29th. Morgan Stanley decreased their target price on shares of Western Union from $9.00 to $7.00 and set an "underweight" rating on the stock in a research report on Tuesday, July 29th. JPMorgan Chase & Co. set a $10.00 price target on shares of Western Union in a research report on Tuesday, July 29th. Finally, Deutsche Bank Aktiengesellschaft began coverage on Western Union in a research note on Thursday, July 17th. They set a "hold" rating and a $9.00 price objective on the stock. Ten analysts have rated the stock with a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat, Western Union has a consensus rating of "Reduce" and a consensus target price of $8.55.

Western Union Trading Down 0.2%

Shares of NYSE WU traded down $0.02 during midday trading on Wednesday, reaching $8.12. 8,025,779 shares of the stock were exchanged, compared to its average volume of 7,940,292. Western Union has a 12 month low of $7.85 and a 12 month high of $11.94. The company has a market capitalization of $2.62 billion, a price-to-earnings ratio of 3.07, a P/E/G ratio of 2.77 and a beta of 0.61. The company has a debt-to-equity ratio of 3.11, a current ratio of 1.15 and a quick ratio of 1.15. The business has a 50-day simple moving average of $8.32 and a two-hundred day simple moving average of $8.81.

Western Union (NYSE:WU - Get Free Report) last posted its earnings results on Monday, July 28th. The credit services provider reported $0.42 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.44 by ($0.02). Western Union had a return on equity of 66.11% and a net margin of 21.83%.The business had revenue of $1.03 billion for the quarter, compared to the consensus estimate of $1.04 billion. During the same period in the previous year, the company posted $0.44 earnings per share. Western Union's revenue for the quarter was down 3.8% compared to the same quarter last year. Western Union has set its FY 2025 guidance at 1.650-1.750 EPS. As a group, equities research analysts expect that Western Union will post 1.79 EPS for the current year.

Insider Buying and Selling

In related news, CEO Devin Mcgranahan acquired 176,470 shares of the company's stock in a transaction that occurred on Thursday, August 21st. The shares were bought at an average price of $8.49 per share, with a total value of $1,498,230.30. Following the completion of the transaction, the chief executive officer directly owned 913,125 shares in the company, valued at $7,752,431.25. This trade represents a 23.96% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Matthew Cagwin bought 17,500 shares of the business's stock in a transaction on Monday, August 18th. The stock was bought at an average price of $8.36 per share, for a total transaction of $146,300.00. Following the purchase, the chief financial officer directly owned 225,611 shares of the company's stock, valued at $1,886,107.96. The trade was a 8.41% increase in their ownership of the stock. The disclosure for this purchase can be found here. 1.58% of the stock is currently owned by insiders.

Institutional Trading of Western Union

A number of institutional investors have recently bought and sold shares of the stock. GAMMA Investing LLC increased its holdings in shares of Western Union by 188.1% in the first quarter. GAMMA Investing LLC now owns 3,803 shares of the credit services provider's stock valued at $40,000 after purchasing an additional 2,483 shares during the period. Wealth Enhancement Advisory Services LLC increased its holdings in Western Union by 47.2% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 122,813 shares of the credit services provider's stock worth $1,299,000 after buying an additional 39,382 shares during the period. Janney Montgomery Scott LLC increased its holdings in Western Union by 35.2% in the 1st quarter. Janney Montgomery Scott LLC now owns 229,360 shares of the credit services provider's stock worth $2,427,000 after buying an additional 59,777 shares during the period. Asset Management One Co. Ltd. raised its position in Western Union by 45.5% during the 1st quarter. Asset Management One Co. Ltd. now owns 68,622 shares of the credit services provider's stock worth $726,000 after buying an additional 21,456 shares during the last quarter. Finally, Edmp Inc. raised its holdings in shares of Western Union by 141.2% during the first quarter. Edmp Inc. now owns 43,892 shares of the credit services provider's stock worth $464,000 after purchasing an additional 25,697 shares during the last quarter. 91.81% of the stock is currently owned by institutional investors and hedge funds.

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.

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