Algert Global LLC Trims Position in The Western Union Company $WU

Key Points

• Algert Global LLC significantly reduced its stake in The Western Union Company by 87.6%, holding only 53,567 shares valued at $567,000.
• Several hedge funds increased or established new positions in Western Union during the first quarter, leading to institutional investors owning 91.81% of the stock.
• Western Union's stock recently opened at $8.6750; it missed analysts' earnings estimates for the last quarter, reporting $0.42 EPS versus an expected $0.44.

Algert Global LLC cut its holdings in The Western Union Company (NYSE:WU - Free Report) by 87.6% during the 1st quarter, according to the company in its most recent disclosure with the SEC. The firm owned 53,567 shares of the credit services provider's stock after selling 377,440 shares during the quarter. Algert Global LLC's holdings in Western Union were worth $567,000 as of its most recent SEC filing.

A number of other institutional investors also recently modified their holdings of WU. Price T Rowe Associates Inc. MD raised its position in shares of Western Union by 18.0% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 28,983,265 shares of the credit services provider's stock worth $307,224,000 after purchasing an additional 4,426,126 shares during the period. AQR Capital Management LLC grew its stake in Western Union by 39.0% in the 4th quarter. AQR Capital Management LLC now owns 11,206,431 shares of the credit services provider's stock valued at $118,788,000 after purchasing an additional 3,146,395 shares during the period. Brickwood Asset Management LLP bought a new position in Western Union in the 4th quarter valued at $31,177,000. Meridiem Capital Partners LP bought a new position in Western Union in the 4th quarter valued at $16,347,000. Finally, Voloridge Investment Management LLC grew its stake in Western Union by 151.1% in the 4th quarter. Voloridge Investment Management LLC now owns 2,459,038 shares of the credit services provider's stock valued at $26,066,000 after purchasing an additional 1,479,751 shares during the period. 91.81% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several research firms have recently weighed in on WU. Royal Bank Of Canada cut their price target on Western Union from $13.00 to $9.00 and set a "sector perform" rating for the company in a research note on Tuesday, July 29th. Morgan Stanley lowered their price target on Western Union from $9.00 to $7.00 and set an "underweight" rating on the stock in a report on Tuesday, July 29th. Barclays set a $8.00 price target on Western Union and gave the company an "underweight" rating in a report on Thursday, July 31st. Monness Crespi & Hardt decreased their price objective on Western Union from $7.50 to $7.00 and set a "sell" rating on the stock in a report on Tuesday, July 29th. Finally, Susquehanna decreased their price objective on Western Union from $11.00 to $9.00 and set a "neutral" rating on the stock in a report on Tuesday, July 29th. Seven equities research analysts have rated the stock with a Hold rating and five have issued a Sell rating to the company. According to data from MarketBeat.com, Western Union presently has an average rating of "Reduce" and an average target price of $8.61.

Western Union Stock Up 1.8%

Shares of NYSE WU traded up $0.16 during mid-day trading on Friday, hitting $8.67. 10,565,448 shares of the stock traded hands, compared to its average volume of 9,007,374. The company has a debt-to-equity ratio of 3.11, a quick ratio of 1.15 and a current ratio of 1.15. The Western Union Company has a 52 week low of $7.89 and a 52 week high of $12.40. The company has a market cap of $2.80 billion, a price-to-earnings ratio of 3.28, a PEG ratio of 2.92 and a beta of 0.61. The stock has a fifty day moving average price of $8.39 and a 200-day moving average price of $9.45.

Western Union (NYSE:WU - Get Free Report) last released its quarterly earnings results on Monday, July 28th. The credit services provider reported $0.42 earnings per share for the quarter, missing the consensus estimate of $0.44 by ($0.02). Western Union had a net margin of 21.83% and a return on equity of 66.11%. The firm had revenue of $1.03 billion for the quarter, compared to the consensus estimate of $1.04 billion. During the same quarter in the prior year, the firm earned $0.44 earnings per share. The company'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. Research analysts anticipate that The Western Union Company will post 1.79 EPS for the current year.

Western Union Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Tuesday, September 16th will be issued a $0.235 dividend. This represents a $0.94 annualized dividend and a yield of 10.8%. The ex-dividend date of this dividend is Tuesday, September 16th. Western Union's payout ratio is 35.61%.

Insider Buying and Selling at Western Union

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

Western Union Company Profile

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.