The Western Union Company (NYSE:WU) Given Consensus Recommendation of "Strong Sell" by Analysts

Key Points

• Analysts have a consensus “Strong Sell” rating on Western Union, with eight sell ratings and six holds among 14 analysts. The average 12-month price target is $7.55, below several prior targets.
• Western Union’s latest quarterly results fell short of expectations, reporting $0.31 EPS versus the $0.42 consensus, while revenue declined 1.3% year over year to $1.01 billion.
• The company announced a quarterly dividend of $0.235 per share, or $0.94 annualized, representing a high 13.3% yield; institutional investors own 91.81% of the stock.

The Western Union Company (NYSE:WU - Get Free Report) has received a consensus rating of "Strong Sell" from the fourteen analysts that are covering the stock, Marketbeat Ratings reports. Eight equities research analysts have rated the stock with a sell recommendation and six have issued a hold recommendation on the company. The average 12 month target price among brokerages that have issued a report on the stock in the last year is $7.5455.

Several research firms have weighed in on WU. New Street Research restated a "reduce" rating on shares of Western Union in a research note on Thursday, August 13th. Wolfe Research reiterated an "underperform" rating and set a $8.00 price objective on shares of Western Union in a research report on Friday, July 31st. Barclays lowered their target price on shares of Western Union from $7.00 to $6.00 and set an "underweight" rating on the stock in a report on Friday, July 31st. JPMorgan Chase & Co. dropped their target price on shares of Western Union from $9.00 to $8.00 and set an "underweight" rating for the company in a research report on Monday, July 13th. Finally, Monness Crespi & Hardt reaffirmed a "sell" rating and set a $6.00 target price on shares of Western Union in a research note on Friday, July 31st.

Western Union Price Performance

NYSE:WU opened at $7.05 on Wednesday. The business's 50-day simple moving average is $7.61 and its two-hundred day simple moving average is $8.37. Western Union has a 52 week low of $6.27 and a 52 week high of $10.35. The stock has a market cap of $2.20 billion, a PE ratio of 5.73 and a beta of 0.50. The company has a quick ratio of 1.12, a current ratio of 1.12 and a debt-to-equity ratio of 2.95.

Western Union (NYSE:WU - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The credit services provider reported $0.31 earnings per share for the quarter, missing analysts' consensus estimates of $0.42 by ($0.11). The business had revenue of $1.01 billion during the quarter, compared to the consensus estimate of $1.02 billion. Western Union had a return on equity of 50.89% and a net margin of 9.79%.The business's revenue was down 1.3% on a year-over-year basis. During the same period last year, the company earned $0.37 EPS. Western Union has set its FY 2026 guidance at 1.250-1.350 EPS. As a group, analysts forecast that Western Union will post 1.29 EPS for the current fiscal year.

Western Union Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 16th will be issued a dividend of $0.235 per share. This represents a $0.94 annualized dividend and a dividend yield of 13.3%. The ex-dividend date of this dividend is Wednesday, September 16th. Western Union's dividend payout ratio is 76.42%.

Institutional Investors Weigh In On Western Union

Several large investors have recently made changes to their positions in WU. Wilmington Savings Fund Society FSB lifted its position in shares of Western Union by 606.7% in the third quarter. Wilmington Savings Fund Society FSB now owns 3,265 shares of the credit services provider's stock worth $26,000 after buying an additional 2,803 shares in the last quarter. Ascentis Independent Advisors purchased a new position in Western Union during the 1st quarter valued at approximately $30,000. Fifth Third Bancorp increased its stake in Western Union by 67.0% in the 4th quarter. Fifth Third Bancorp now owns 3,331 shares of the credit services provider's stock worth $31,000 after acquiring an additional 1,336 shares during the last quarter. Caitong International Asset Management Co. Ltd increased its stake in Western Union by 179.6% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 3,341 shares of the credit services provider's stock worth $31,000 after acquiring an additional 2,146 shares during the last quarter. Finally, Danske Bank A S purchased a new stake in shares of Western Union during the 3rd quarter worth approximately $37,000. 91.81% of the stock is owned by institutional investors.

Western Union Company Profile

Western Union Company NYSE: WU is a global leader in cross-border, cross-currency money movement and payments. The company enables individuals and businesses to send and receive money through a variety of channels, including its vast agent network, online platforms, and mobile applications. Core services include person-to-person money transfers, business-to-business cross-border payments, bill payment services and prepaid card programs.

Through its digital offerings, Western Union provides customers with the ability to initiate transfers via its website and mobile app, as well as track transactions in real time.

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