Fourth Sail Capital LP Grows Stake in The Western Union Company $WU

Key Points

• Fourth Sail Capital LP boosted its Western Union stake by 32.9% in the fourth quarter, buying 641,152 more shares and bringing its holdings to 2.59 million shares worth about $24.1 million.
• Analyst sentiment remains cautious: Weiss Ratings downgraded Western Union to sell, and the stock’s consensus rating is now Reduce with an average price target of $8.82.
• Western Union recently missed earnings and revenue estimates, reporting $0.25 EPS versus $0.40 expected and $963.5 million in revenue versus $1.06 billion expected, even as it kept a quarterly dividend of $0.235 per share.

Fourth Sail Capital LP grew its holdings in The Western Union Company (NYSE:WU - Free Report) by 32.9% in the 4th quarter, according to the company in its most recent filing with the SEC. The firm owned 2,589,752 shares of the credit services provider's stock after buying an additional 641,152 shares during the quarter. Western Union makes up about 3.9% of Fourth Sail Capital LP's investment portfolio, making the stock its 12th largest holding. Fourth Sail Capital LP owned approximately 0.81% of Western Union worth $24,111,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also bought and sold shares of the business. RiverFront Investment Group LLC lifted its holdings in Western Union by 4.7% in the 4th quarter. RiverFront Investment Group LLC now owns 28,662 shares of the credit services provider's stock worth $267,000 after buying an additional 1,278 shares during the period. Fifth Third Bancorp lifted its holdings in Western Union by 67.0% in the 4th quarter. Fifth Third Bancorp now owns 3,331 shares of the credit services provider's stock worth $31,000 after buying an additional 1,336 shares during the period. Kelleher Financial Advisors lifted its holdings in Western Union by 16.0% in the 4th quarter. Kelleher Financial Advisors now owns 9,992 shares of the credit services provider's stock worth $93,000 after buying an additional 1,381 shares during the period. Kestra Investment Management LLC lifted its holdings in Western Union by 0.6% in the 4th quarter. Kestra Investment Management LLC now owns 239,428 shares of the credit services provider's stock worth $2,229,000 after buying an additional 1,398 shares during the period. Finally, Michels Family Financial LLC lifted its holdings in Western Union by 3.2% in the 3rd quarter. Michels Family Financial LLC now owns 46,722 shares of the credit services provider's stock worth $373,000 after buying an additional 1,436 shares during the period. Hedge funds and other institutional investors own 91.81% of the company's stock.

Wall Street Analyst Weigh In

Separately, Weiss Ratings cut Western Union from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, June 5th. Seven investment analysts have rated the stock with a Hold rating and six have issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Reduce" and a consensus price target of $8.82.

Insiders Place Their Bets

In other Western Union news, insider Benjamin Carlton Adams sold 19,924 shares of Western Union stock in a transaction on Friday, May 1st. The stock was sold at an average price of $9.23, for a total transaction of $183,898.52. Following the completion of the transaction, the insider owned 234,689 shares in the company, valued at approximately $2,166,179.47. The trade was a 7.83% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Giovanni Angelini sold 6,000 shares of Western Union stock in a transaction on Tuesday, April 28th. The shares were sold at an average price of $9.47, for a total value of $56,820.00. Following the transaction, the insider owned 311,292 shares of the company's stock, valued at $2,947,935.24. The trade was a 1.89% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 3.29% of the stock is currently owned by insiders.

Western Union Stock Up 3.3%

Shares of NYSE:WU opened at $7.57 on Friday. The stock has a fifty day simple moving average of $8.60 and a two-hundred day simple moving average of $9.10. The stock has a market capitalization of $2.36 billion, a price-to-earnings ratio of 5.56, a PEG ratio of 0.96 and a beta of 0.46. The Western Union Company has a 12-month low of $7.24 and a 12-month high of $10.35. The company has a current ratio of 1.11, a quick ratio of 1.11 and a debt-to-equity ratio of 2.88.

Western Union (NYSE:WU - Get Free Report) last announced its quarterly earnings data on Friday, April 24th. The credit services provider reported $0.25 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.40 by ($0.15). The company had revenue of $963.50 million for the quarter, compared to analysts' expectations of $1.06 billion. Western Union had a net margin of 10.88% and a return on equity of 55.94%. The firm's quarterly revenue was down .1% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.41 EPS. Western Union has set its FY 2026 guidance at 1.750-1.850 EPS. On average, research analysts anticipate that The Western Union Company will post 1.76 earnings per share for the current fiscal year.

Western Union Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Tuesday, June 16th will be paid a dividend of $0.235 per share. The ex-dividend date is Tuesday, June 16th. This represents a $0.94 dividend on an annualized basis and a yield of 12.4%. Western Union's payout ratio is presently 69.12%.

Western Union 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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