Bank of America Corp DE Purchases 1,163,577 Shares of The Western Union Company $WU

Key Points

• Bank of America increased its Western Union stake by 43.5% in the first quarter, purchasing 1.16 million additional shares and bringing its holdings to 3.84 million shares, worth approximately $33.5 million. Institutional investors collectively own 91.81% of WU.
• Analysts remain bearish, with several firms cutting price targets and the stock carrying a consensus “Strong Sell” rating with a $7.55 target. Western Union also missed quarterly earnings estimates, reporting $0.31 per share versus the $0.42 consensus.
• WU opened at $7.44 and recently declared a quarterly dividend of $0.235, representing a 12.6% annualized yield. The company is pursuing growth through its Intermex acquisition and Stablecard digital-finance initiative, but regulatory delays and weak earnings forecasts remain risks.

Bank of America Corp DE grew its position in The Western Union Company (NYSE:WU - Free Report) by 43.5% in the 1st quarter, according to its most recent filing with the SEC. The firm owned 3,838,382 shares of the credit services provider's stock after buying an additional 1,163,577 shares during the period. Bank of America Corp DE owned 1.23% of Western Union worth $33,509,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Goldman Sachs Group Inc. boosted its stake in shares of Western Union by 401.4% in the 4th quarter. Goldman Sachs Group Inc. now owns 7,604,026 shares of the credit services provider's stock valued at $70,793,000 after purchasing an additional 6,087,613 shares during the last quarter. Qube Research & Technologies Ltd raised its stake 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 worth $35,114,000 after buying an additional 3,717,589 shares during the last quarter. Marshall Wace LLP lifted its holdings in Western Union by 3,370.2% in 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 period. UBS Group AG lifted its holdings in Western Union by 128.4% in the third quarter. UBS Group AG now owns 4,900,542 shares of the credit services provider's stock valued at $39,155,000 after buying an additional 2,754,827 shares during the period. Finally, Capital Research Global Investors boosted its stake in Western Union by 35.3% in the fourth quarter. Capital Research Global Investors now owns 10,407,960 shares of the credit services provider's stock valued at $96,898,000 after acquiring an additional 2,716,385 shares during the last quarter. Institutional investors own 91.81% of the company's stock.

Analyst Upgrades and Downgrades

WU has been the subject of several recent research reports. Citigroup dropped their target price on shares of Western Union from $8.50 to $7.00 and set a "neutral" rating for the company in a research report on Monday, August 3rd. Morgan Stanley decreased 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. Royal Bank Of Canada dropped 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. Susquehanna cut their target price on Western Union from $10.00 to $8.00 and set a "neutral" rating on the stock in a research note on Friday, July 31st. Finally, Cantor Fitzgerald reduced 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. Six investment analysts have rated the stock with a Hold rating and eight have given a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Strong Sell" and a consensus price target of $7.55.

Western Union News Summary

Here are the key news stories impacting Western Union this week:

• Positive Sentiment: New York’s Department of Financial Services approved Western Union’s pending acquisition of International Money Express NASDAQ: IMXI. The approval advances the deal and could expand WU’s cross-border remittance scale, although the company agreed to maintain certain remittance services and locations in New York. Western Union’s Intermex Deal Wins New York Approval but Stalls in California
• Positive Sentiment: Western Union is pursuing new digital-finance growth through its Stablecard launch, a product tied to stablecoin-based payments. The initiative could support WU’s efforts to modernize its business, though its financial impact remains unproven. What Is Western Union Betting On With Its Stablecard Launch?
• Neutral Sentiment: William Blair analyst Christopher Kennedy maintained a Hold rating, citing regulatory uncertainty and weak fundamentals at Intermex. Another analyst source placed WU’s target price at $7.55, close to the stock’s recent trading level, suggesting limited near-term upside based on that view. Regulatory Uncertainty and Weak Intermex Fundamentals Lead to Hold Rating
• Negative Sentiment: California’s Department of Financial Protection and Innovation suspended a previously granted approval extension for the Intermex acquisition, saying it needs to reassess the transaction’s impact on operations in the state. The delay could push back closing and increase regulatory, transaction and integration risks. Western Union and Intermex Provide Update on Pending Acquisition
• Negative Sentiment: Zacks Research reduced its EPS estimates for multiple future quarters, including Q1 2027 to $0.33 from $0.36, Q2 2027 to $0.36 from $0.44, Q4 2027 to $0.46 from $0.58, and Q2 2028 to $0.40 from $0.46. Zacks retained a Strong Sell rating, reinforcing concerns about earnings momentum. Western Union Analyst Estimate Changes

Western Union Stock Down 0.7%

NYSE:WU opened at $7.44 on Friday. The Western Union Company has a 1 year low of $6.27 and a 1 year high of $10.35. The stock has a 50-day moving average price of $7.62 and a two-hundred day moving average price of $8.59. The stock has a market cap of $2.32 billion, a price-to-earnings ratio of 6.05 and a beta of 0.47. 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 for the quarter, missing the consensus estimate of $0.42 by ($0.11). The business 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 revenue for the quarter was down 1.3% on a year-over-year basis. During the same quarter last year, the firm earned $0.37 EPS. Western Union has set its FY 2026 guidance at 1.250-1.350 EPS. As a group, equities analysts expect that The Western Union Company will post 1.29 earnings per share for the current year.

Western Union Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 16th will be issued a $0.235 dividend. This represents a $0.94 annualized dividend and a dividend yield of 12.6%. The ex-dividend date is Wednesday, September 16th. Western Union's dividend payout ratio is 76.42%.

About Western Union

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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