The Western Union Company (NYSE:WU) Stock Now Rated "Strong Sell" by Sell-Side Brokerages

Key Points

• Western Union received an average “Strong Sell” rating from 14 analysts, with eight sells and six holds. The average 12-month price target is $7.45, below several prior targets that were recently cut.
• Shares opened at $6.17, near the company’s 12-month low of $5.94. Western Union’s latest quarterly EPS of $0.31 missed the $0.42 consensus estimate, while revenue declined 1.3% year over year.
• The company declared a quarterly dividend of $0.235 per share, equivalent to $0.94 annually and a 15.2% yield; its dividend payout ratio is 76.42%.

The Western Union Company (NYSE:WU - Get Free Report) has been given an average rating of "Strong Sell" by the fourteen research firms 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 price target among brokers that have issued a report on the stock in the last year is $7.45.

WU has been the topic of a number of research reports. JPMorgan Chase & Co. reduced their target price on shares of Western Union from $9.00 to $8.00 and set an "underweight" rating on the stock in a report on Monday, July 13th. Morgan Stanley dropped their price target on shares of Western Union from $7.00 to $6.00 and set an "underweight" rating for the company in a research note on Friday, July 31st. New Street Research reissued a "reduce" rating on shares of Western Union in a research note on Thursday, August 13th. Royal Bank Of Canada decreased their price objective on Western Union from $9.00 to $8.00 and set a "sector perform" rating for the company in a report on Friday, July 31st. Finally, Cantor Fitzgerald cut their target price on Western Union from $8.00 to $7.00 and set an "underweight" rating on the stock in a report on Monday, August 3rd.

Western Union Stock Performance

Shares of WU stock opened at $6.17 on Friday. The business's 50-day moving average price is $7.19 and its 200-day moving average price is $8.02. Western Union has a 12 month low of $5.94 and a 12 month high of $10.35. The firm has a market capitalization of $1.93 billion, a price-to-earnings ratio of 5.02 and a beta of 0.50. The company has a current ratio of 1.12, a quick 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 (EPS) for the quarter, missing the consensus estimate of $0.42 by ($0.11). The firm had revenue of $1.01 billion during the quarter, compared to analyst estimates of $1.02 billion. Western Union had a net margin of 9.79% and a return on equity of 50.89%. The business's quarterly revenue was down 1.3% compared to the same quarter last year. During the same period in the prior year, the company earned $0.37 EPS. Western Union has set its FY 2026 guidance at 1.250-1.350 EPS. Equities research analysts forecast that Western Union will post 1.29 EPS for the current year.

Western Union Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 16th will be given a dividend of $0.2350 per share. This represents a $0.94 dividend on an annualized basis and a yield of 15.2%. The ex-dividend date of this dividend is Wednesday, September 16th. Western Union's dividend payout ratio is currently 76.42%.

Institutional Investors Weigh In On Western Union

A number of institutional investors have recently modified their holdings of the company. Miramontes Capital LLC increased its position in shares of Western Union by 99.8% during the second quarter. Miramontes Capital LLC now owns 95,436 shares of the credit services provider's stock worth $735,000 after buying an additional 47,667 shares during the period. Engineers Gate Manager LP boosted its position in Western Union by 467.6% during the second quarter. Engineers Gate Manager LP now owns 1,699,841 shares of the credit services provider's stock valued at $13,089,000 after acquiring an additional 1,400,369 shares during the last quarter. Nykredit A S bought a new stake in Western Union during the second quarter valued at $51,000. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in Western Union during the 2nd quarter worth about $977,000. Finally, AlphaGrep UK Ltd acquired a new stake in Western Union during the 2nd quarter worth about $104,000. 91.81% of the stock is owned by institutional investors.

Western Union Company Profile

Western Union Company NYSE: WU is a global provider of money movement and payment services. The company enables consumers and businesses to send and receive money across borders and within individual markets through digital platforms, mobile applications and a network of retail agent locations.

Its services include consumer money transfers, international remittances, bill payments and money orders. Customers can typically initiate transfers online, through the Western Union app or at participating retail locations, with recipients able to collect funds in cash or receive them through eligible bank accounts, digital wallets or other payment methods, depending on the destination market.

Western Union traces its origins to 1851, when it was established as a telegraph company in the United States.

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