Algebris UK Ltd. Takes $21.22 Million Position in The Western Union Company $WU

Key Points

• Algebris UK Ltd. acquired 2.77 million Western Union shares valued at approximately $21.2 million, representing 0.89% of the company and 1.4% of Algebris’ portfolio. Institutional investors collectively own 91.81% of WU.
• Analysts remain bearish: Western Union has a consensus “Strong Sell” rating, with six Hold and eight Sell ratings and an average price target of $7.55. Shares recently opened at $7.20, near the company’s one-year low.
• Western Union’s latest quarterly results missed expectations, with EPS of $0.31 versus the $0.42 consensus and revenue down 1.3% year over year. The company declared a quarterly dividend of $0.235 per share, equivalent to a 13.1% annualized yield.

Algebris UK Ltd. acquired a new position in The Western Union Company (NYSE:WU - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm acquired 2,765,094 shares of the credit services provider's stock, valued at approximately $21,224,000. Western Union makes up about 1.4% of Algebris UK Ltd.'s investment portfolio, making the stock its 24th biggest position. Algebris UK Ltd. owned about 0.89% of Western Union as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in WU. BlackRock Inc. acquired a new position in shares of Western Union during the second quarter valued at about $241,806,000. Goldman Sachs Group Inc. lifted its stake in shares of Western Union by 401.4% during the fourth quarter. Goldman Sachs Group Inc. now owns 7,604,026 shares of the credit services provider's stock worth $70,793,000 after buying an additional 6,087,613 shares during the period. Qube Research & Technologies Ltd grew its holdings in shares of Western Union by 821.1% during the second quarter. Qube Research & Technologies Ltd now owns 4,170,343 shares of the credit services provider's stock valued at $35,114,000 after buying an additional 3,717,589 shares during the last quarter. Marshall Wace LLP grew its holdings in shares of Western Union by 3,370.2% during the fourth quarter. Marshall Wace LLP now owns 3,740,849 shares of the credit services provider's stock valued at $34,827,000 after buying an additional 3,633,049 shares during the last quarter. Finally, UBS Group AG increased its position in shares of Western Union by 128.4% in the 3rd quarter. UBS Group AG now owns 4,900,542 shares of the credit services provider's stock valued at $39,155,000 after acquiring an additional 2,754,827 shares during the period. 91.81% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on WU shares. New Street Research restated a "reduce" rating on shares of Western Union in a research note on Thursday, August 13th. Citigroup dropped their target price on Western Union from $8.50 to $7.00 and set a "neutral" rating on the stock in a research report on Monday, August 3rd. Morgan Stanley cut their price target 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. Royal Bank Of Canada reduced their price target on shares of Western Union from $9.00 to $8.00 and set a "sector perform" rating for the company in a research report on Friday, July 31st. Finally, Barclays decreased their price objective 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. Six equities research analysts have rated the stock with a Hold rating and eight have given a Sell rating to the company's stock. According to MarketBeat.com, Western Union has an average rating of "Strong Sell" and a consensus price target of $7.55.

Western Union Price Performance

NYSE:WU opened at $7.20 on Thursday. The company has a debt-to-equity ratio of 2.95, a current ratio of 1.12 and a quick ratio of 1.12. The firm has a market cap of $2.25 billion, a price-to-earnings ratio of 5.85 and a beta of 0.47. The company has a 50 day moving average price of $7.61 and a 200-day moving average price of $8.53. The Western Union Company has a 1-year low of $6.27 and a 1-year high of $10.35.

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

Western Union Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 16th will be given a dividend of $0.235 per share. The ex-dividend date is Wednesday, September 16th. This represents a $0.94 dividend on an annualized basis and a dividend yield of 13.1%. Western Union's dividend payout ratio (DPR) is 76.42%.

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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