Redwood Investment Management LLC Makes New Investment in The Western Union Company $WU

Key Points

• Redwood Investment Management acquired 284,875 Western Union shares worth approximately $2.2 million, while other institutional investors—including BlackRock, Goldman Sachs and Qube Research—also increased or initiated positions. Institutions collectively own 91.81% of the company.
• Analyst sentiment remains negative: Western Union has an average “Strong Sell” rating, with 14 analysts issuing Hold or Sell ratings and a consensus price target of $7.55.
• Western Union’s latest quarterly results missed expectations, with EPS of $0.31 versus $0.42 expected and revenue down 1.3% year over year. The company declared a quarterly dividend of $0.235, equivalent to a high 12.9% annualized yield.

Redwood Investment Management LLC acquired a new position in The Western Union Company (NYSE:WU - Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor acquired 284,875 shares of the credit services provider's stock, valued at approximately $2,194,000. Redwood Investment Management LLC owned approximately 0.09% of Western Union at the end of the most recent reporting period.

Other large investors also recently modified their holdings of the company. BlackRock Inc. purchased a new stake in Western Union in the 2nd quarter worth $241,806,000. Goldman Sachs Group Inc. lifted its position in shares of Western Union by 401.4% in the fourth 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 stake in shares of Western Union by 821.1% in 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 acquiring an additional 3,717,589 shares during the period. Marshall Wace LLP boosted its stake in shares of 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 worth $34,827,000 after acquiring an additional 3,633,049 shares during the period. Finally, Algebris UK Ltd. purchased a new stake in shares of Western Union during the second quarter worth about $21,224,000. Hedge funds and other institutional investors own 91.81% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts recently commented on WU shares. Wolfe Research reissued an "underperform" rating and issued a $8.00 price target on shares of Western Union in a report on Friday, July 31st. Susquehanna cut their price objective on shares of Western Union from $10.00 to $8.00 and set a "neutral" rating for the company in a report on Friday, July 31st. Morgan Stanley reduced their price objective on shares of Western Union from $7.00 to $6.00 and set an "underweight" rating on the stock in a research report on Friday, July 31st. Citigroup lowered their target price on shares of Western Union from $8.50 to $7.00 and set a "neutral" rating on the stock in a report on Monday, August 3rd. Finally, Barclays cut their target price on shares of Western Union from $7.00 to $6.00 and set an "underweight" rating for the company in a research note on Friday, July 31st. Six research analysts have rated the stock with a Hold rating and eight have assigned a Sell rating to the company. Based on data from MarketBeat.com, Western Union has an average rating of "Strong Sell" and a consensus target price of $7.55.

Western Union Stock Performance

NYSE WU opened at $7.27 on Thursday. The stock has a market capitalization of $2.27 billion, a PE ratio of 5.91 and a beta of 0.47. The business has a 50 day simple moving average of $7.61 and a two-hundred day simple moving average of $8.45. The company has a debt-to-equity ratio of 2.95, a current ratio of 1.12 and a quick ratio of 1.12. The Western Union Company has a 1-year low of $6.27 and a 1-year high of $10.35.

Western Union (NYSE:WU - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The credit services provider reported $0.31 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.42 by ($0.11). The firm had revenue of $1.01 billion for the quarter, compared to analysts' expectations of $1.02 billion. Western Union had a return on equity of 50.89% and a net margin of 9.79%.The firm's revenue was down 1.3% on a year-over-year basis. During the same period last year, the company earned $0.37 earnings per share. Western Union has set its FY 2026 guidance at 1.250-1.350 EPS. On average, research analysts predict that The Western Union Company will post 1.29 EPS for the current fiscal year.

Western Union Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 16th will be paid 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 of this dividend is Wednesday, September 16th. Western Union's dividend payout ratio (DPR) is presently 76.42%.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source