BlackRock Inc. Makes New Investment in The Western Union Company $WU

Key Points

• BlackRock acquired a major Western Union stake, purchasing 31.4 million shares valued at approximately $241.8 million, or about 10.07% of the company. Institutional investors collectively own 91.81% of Western Union.
• Analyst sentiment remains strongly negative: six analysts rate the stock Hold and eight rate it Sell, producing an average “Strong Sell” rating and a $7.55 price target.
• Western Union reported quarterly earnings of $0.31 per share, below the $0.42 consensus estimate, while revenue declined 1.3% year over year. The company maintains a $0.235 quarterly dividend, equivalent to a 12.9% annualized yield.

BlackRock Inc. acquired a new stake in shares of The Western Union Company (NYSE:WU - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm acquired 31,403,327 shares of the credit services provider's stock, valued at approximately $241,806,000. BlackRock Inc. owned about 10.07% of Western Union 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. lifted its position in 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 acquiring an additional 6,087,613 shares in the last quarter. Qube Research & Technologies Ltd boosted its holdings in Western Union by 821.1% during the 2nd quarter. Qube Research & Technologies Ltd now owns 4,170,343 shares of the credit services provider's stock worth $35,114,000 after acquiring an additional 3,717,589 shares during the last quarter. Marshall Wace LLP grew its stake in shares of Western Union by 3,370.2% in the 4th quarter. Marshall Wace LLP now owns 3,740,849 shares of the credit services provider's stock worth $34,827,000 after acquiring an additional 3,633,049 shares in the last quarter. UBS Group AG raised its holdings in shares of 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 purchasing an additional 2,754,827 shares during the last quarter. Finally, Capital Research Global Investors lifted its position in shares of Western Union by 35.3% during 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 purchasing an additional 2,716,385 shares in the last quarter. Institutional investors and hedge funds own 91.81% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on WU. Zacks Research downgraded Western Union from a "hold" rating to a "strong sell" rating in a research note on Tuesday, August 4th. Monness Crespi & Hardt reissued a "sell" rating and issued a $6.00 price target on shares of Western Union in a report on Friday, July 31st. JPMorgan Chase & Co. decreased their price objective on shares of Western Union from $9.00 to $8.00 and set an "underweight" rating for the company in a report on Monday, July 13th. New Street Research reissued a "reduce" rating on shares of Western Union in a research report on Thursday, August 13th. Finally, Wolfe Research restated an "underperform" rating and set a $8.00 price target on shares of Western Union in a research note on Friday, July 31st. Six equities research analysts have rated the stock with a Hold rating and eight have issued a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Strong Sell" and an average target price of $7.55.

Western Union Stock Performance

NYSE WU opened at $7.27 on Thursday. The firm has a market cap of $2.27 billion, a P/E ratio of 5.91 and a beta of 0.47. The company has a quick ratio of 1.12, a current ratio of 1.12 and a debt-to-equity ratio of 2.95. The company's 50 day moving average is $7.61 and its 200-day moving average is $8.45. The Western Union Company has a 12-month low of $6.27 and a 12-month high of $10.35.

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 analysts' consensus estimates of $0.42 by ($0.11). The business had revenue of $1.01 billion during the quarter, compared to analysts' expectations of $1.02 billion. Western Union had a net margin of 9.79% and a return on equity of 50.89%. The firm's quarterly revenue was down 1.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.37 earnings per share. Western Union has set its FY 2026 guidance at 1.250-1.350 EPS. Sell-side analysts predict that The Western Union Company will post 1.29 earnings per share for the current year.

Western Union Announces Dividend

The company also recently disclosed 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 dividend on an annualized basis and a dividend yield of 12.9%. The ex-dividend date is Wednesday, September 16th. Western Union's dividend payout ratio is presently 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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