New York State Teachers Retirement System Raises Stock Position in The Western Union Company $WU

Key Points

• The New York State Teachers Retirement System increased its stake in The Western Union Company by 8.7% in Q2, bringing its total ownership to approximately 396,780 shares valued at $3.34 million.
• Western Union reported an EPS of $0.42 for the latest quarter, missing estimates and representing a 3.8% decline in revenue compared to last year.
• The company declared a quarterly dividend of $0.235 per share, leading to an annualized yield of 11.6%, with a payout ratio of 35.61%.

New York State Teachers Retirement System raised its stake in shares of The Western Union Company (NYSE:WU - Free Report) by 8.7% during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 396,780 shares of the credit services provider's stock after purchasing an additional 31,687 shares during the quarter. New York State Teachers Retirement System owned approximately 0.12% of Western Union worth $3,341,000 at the end of the most recent reporting period.

Other hedge funds have also added to or reduced their stakes in the company. MCF Advisors LLC increased its position in Western Union by 464.3% during the 1st quarter. MCF Advisors LLC now owns 3,397 shares of the credit services provider's stock valued at $36,000 after purchasing an additional 2,795 shares during the period. GAMMA Investing LLC increased its position in Western Union by 188.1% during the 1st quarter. GAMMA Investing LLC now owns 3,803 shares of the credit services provider's stock valued at $40,000 after purchasing an additional 2,483 shares during the period. Farmers & Merchants Investments Inc. increased its position in Western Union by 2,225.8% during the 2nd quarter. Farmers & Merchants Investments Inc. now owns 5,675 shares of the credit services provider's stock valued at $48,000 after purchasing an additional 5,431 shares during the period. CHICAGO TRUST Co NA purchased a new position in Western Union during the 2nd quarter valued at $84,000. Finally, Annis Gardner Whiting Capital Advisors LLC purchased a new position in Western Union during the 1st quarter valued at $96,000. 91.81% of the stock is owned by hedge funds and other institutional investors.

Western Union Stock Performance

Shares of WU stock opened at $8.11 on Tuesday. The Western Union Company has a one year low of $7.85 and a one year high of $11.94. The company's 50-day moving average is $8.33 and its 200 day moving average is $8.82. The company has a market capitalization of $2.62 billion, a price-to-earnings ratio of 3.07, a price-to-earnings-growth ratio of 2.84 and a beta of 0.61. The company has a debt-to-equity ratio of 3.11, a quick ratio of 1.15 and a current ratio of 1.15.

Western Union (NYSE:WU - Get Free Report) last announced its quarterly earnings data on Monday, July 28th. The credit services provider reported $0.42 EPS 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 analysts' expectations of $1.04 billion. During the same period last year, the company posted $0.44 earnings per share. The business'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. Sell-side analysts expect that The Western Union Company will post 1.79 EPS for the current fiscal year.

Western Union Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 30th. Investors of record on Tuesday, September 16th were given a dividend of $0.235 per share. This represents a $0.94 annualized dividend and a yield of 11.6%. The ex-dividend date of this dividend was Tuesday, September 16th. Western Union's dividend payout ratio is 35.61%.

Analysts Set New Price Targets

A number of analysts have recently weighed in on WU shares. Monness Crespi & Hardt reduced their target price on shares of Western Union from $7.50 to $7.00 and set a "sell" rating on the stock in a research report on Tuesday, July 29th. Weiss Ratings raised shares of Western Union from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Wednesday, October 8th. JPMorgan Chase & Co. set a $10.00 target price on shares of Western Union in a research report on Tuesday, July 29th. Morgan Stanley reduced their target price on shares of Western Union from $9.00 to $7.00 and set an "underweight" rating on the stock in a research report on Tuesday, July 29th. Finally, UBS Group reduced their target price on shares of Western Union from $10.50 to $8.50 and set a "neutral" rating on the stock in a research report on Tuesday, July 29th. Nine investment analysts have rated the stock with a Hold rating and four have issued a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Reduce" and a consensus target price of $8.50.

Insider Activity

In related news, CFO Matthew Cagwin bought 17,500 shares of the stock in a transaction on Monday, August 18th. The shares were acquired at an average price of $8.36 per share, for a total transaction of $146,300.00. Following the purchase, the chief financial officer owned 225,611 shares of the company's stock, valued at approximately $1,886,107.96. The trade was a 8.41% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Devin Mcgranahan purchased 176,470 shares of the company's stock in a transaction dated Thursday, August 21st. The shares were bought at an average cost of $8.49 per share, for a total transaction of $1,498,230.30. Following the acquisition, the chief executive officer owned 913,125 shares in the company, 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. Corporate 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.

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