The Western Union Company (NYSE:WU) Stock Has Consensus Price Target of $7.18 According to Analysts

Key Points

• Analysts remain cautious: Fourteen brokerages give Western Union a consensus “Reduce” rating, split evenly between sell and hold recommendations. The average 12-month price target is $7.18, above the reported $6.25 share price.
• Institutional ownership is high: Institutional investors own 91.81% of the stock, with BlackRock and several other major firms establishing or adding significant positions during the second quarter.
• Income appeal comes with operating pressure: Western Union offers a $0.94 annualized dividend, yielding about 15%, but its latest quarterly EPS of $0.31 missed estimates and revenue declined 1.3% year over year.

Shares of The Western Union Company (NYSE:WU - Get Free Report) have earned a consensus recommendation of "Reduce" from the fourteen brokerages that are presently covering the stock, MarketBeat Ratings reports. Seven investment analysts have rated the stock with a sell rating and seven have issued a hold rating on the company. The average 12 month target price among brokerages that have issued a report on the stock in the last year is $7.18.

WU has been the subject of several recent research reports. Monness Crespi & Hardt upgraded Western Union from a "sell" rating to a "neutral" rating in a research report on Wednesday, October 14th. Susquehanna restated a "neutral" rating and set a $7.00 price objective on shares of Western Union in a research report on Wednesday, October 14th. New Street Research restated a "reduce" rating on shares of Western Union in a research report on Thursday, August 13th. Morgan Stanley lowered their price objective on Western Union from $7.00 to $6.00 and set an "underweight" rating for the company in a research note on Friday, July 31st. Finally, Cantor Fitzgerald dropped their target price on Western Union from $7.00 to $6.00 and set an "underweight" rating for the company in a report on Tuesday, September 29th.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. bought a new stake in shares of Western Union in the 2nd quarter valued at about $241,806,000. Algebris UK Ltd. purchased a new position in shares of Western Union in the 2nd quarter worth approximately $21,224,000. Bank of New York Mellon Corp bought a new position in shares of Western Union during the 2nd quarter worth approximately $20,312,000. Bank of America Corp DE bought a new position in shares of Western Union during the 2nd quarter worth approximately $17,743,000. Finally, Connor Clark & Lunn Investment Management Ltd. bought a new position in shares of Western Union during the 2nd quarter worth approximately $11,248,000. 91.81% of the stock is currently owned by institutional investors.

Western Union Trading Up 0.7%

Shares of Western Union stock opened at $6.25 on Thursday. Western Union has a fifty-two week low of $5.87 and a fifty-two week high of $10.35. The company has a debt-to-equity ratio of 2.95, a quick ratio of 1.12 and a current ratio of 1.12. The company has a market capitalization of $1.95 billion, a P/E ratio of 5.09 and a beta of 0.51. The company has a fifty day moving average of $6.65 and a 200 day moving average of $7.62.

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 (EPS) for the quarter, missing the consensus estimate of $0.42 by ($0.11). The company had revenue of $1.01 billion for the quarter, compared to the consensus estimate of $1.02 billion. Western Union had a net margin of 9.79% and a return on equity of 50.89%. The company's quarterly revenue was down 1.3% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.37 EPS. Western Union has set its FY 2026 guidance at 1.250-1.350 EPS. On average, sell-side analysts anticipate that Western Union will post 1.28 earnings per share for the current fiscal year.

Western Union Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 16th were paid a dividend of $0.2350 per share. This represents a $0.94 dividend on an annualized basis and a dividend yield of 15.0%. The ex-dividend date of this dividend was Wednesday, September 16th. Western Union's payout ratio is currently 76.42%.

Western Union Company Profile

Western Union is a global provider of money movement and payment services. Through its branded digital platforms and retail agent network, the company enables consumers to send and receive money, transfer funds between bank accounts and digital wallets, pay bills, and purchase money orders in select markets.

The company serves customers across more than 200 countries and territories, with services available through physical locations as well as its website and mobile application. Its operations connect individuals and businesses across international borders, supporting both cash-based transactions and account-to-account transfers.

Western Union traces its origins to 1851, when it was established as a telegraph company before expanding into money transfer and payment services.

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