Schwartz Investment Counsel Inc. Raises Stock Position in The Western Union Company $WU

Key Points

• Schwartz Investment Counsel increased its Western Union stake by 30% in Q1, buying an additional 300,000 shares to reach 1.3 million shares valued at about $11.35 million.
• Western Union reported weaker-than-expected Q1 earnings, posting $0.25 EPS versus $0.40 estimated and revenue of $963.5 million versus $1.06 billion expected.
• The company pays a high dividend yield of 11.9%, but analysts remain cautious, with a consensus rating of “Reduce” and an average target price of $8.55.

Schwartz Investment Counsel Inc. lifted its stake in The Western Union Company (NYSE:WU - Free Report) by 30.0% during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 1,300,000 shares of the credit services provider's stock after buying an additional 300,000 shares during the quarter. Schwartz Investment Counsel Inc. owned approximately 0.42% of Western Union worth $11,349,000 as of its most recent SEC filing.

Other large investors also recently bought and sold shares of the company. Chicago Partners Investment Group LLC acquired a new stake in shares of Western Union during the 1st quarter worth approximately $142,000. Diversify Wealth Management LLC acquired a new position in shares of Western Union in the first quarter worth about $139,000. Fifth Third Bancorp boosted its stake in shares of Western Union by 2,098.8% during the 1st quarter. Fifth Third Bancorp now owns 73,241 shares of the credit services provider's stock worth $639,000 after acquiring an additional 69,910 shares in the last quarter. Elevated Capital Advisors LLC boosted its stake in shares of Western Union by 16.1% during the 1st quarter. Elevated Capital Advisors LLC now owns 59,924 shares of the credit services provider's stock worth $523,000 after acquiring an additional 8,295 shares in the last quarter. Finally, Range Financial Group LLC increased its stake in shares of Western Union by 1.6% in the 1st quarter. Range Financial Group LLC now owns 202,520 shares of the credit services provider's stock valued at $1,768,000 after purchasing an additional 3,182 shares in the last quarter. 91.81% of the stock is owned by institutional investors and hedge funds.

Western Union Trading Up 0.4%

Shares of WU stock opened at $7.88 on Tuesday. The company has a current ratio of 1.11, a quick ratio of 1.11 and a debt-to-equity ratio of 2.88. The Western Union Company has a twelve month low of $6.91 and a twelve month high of $10.35. The company's 50-day moving average price is $7.95 and its 200-day moving average price is $8.86. The stock has a market cap of $2.46 billion, a price-to-earnings ratio of 5.79, a PEG ratio of 1.00 and a beta of 0.46.

Western Union (NYSE:WU - Get Free Report) last issued its earnings results on Friday, April 24th. The credit services provider reported $0.25 EPS for the quarter, missing analysts' consensus estimates of $0.40 by ($0.15). The firm had revenue of $963.50 million for the quarter, compared to analysts' expectations of $1.06 billion. Western Union had a return on equity of 55.94% and a net margin of 10.88%.Western Union's revenue for the quarter was down .1% on a year-over-year basis. During the same period last year, the firm earned $0.41 earnings per share. Western Union has set its FY 2026 guidance at 1.750-1.850 EPS. As a group, equities analysts predict that The Western Union Company will post 1.76 earnings per share for the current year.

Western Union Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Tuesday, June 16th were given a $0.235 dividend. The ex-dividend date of this dividend was Tuesday, June 16th. This represents a $0.94 dividend on an annualized basis and a yield of 11.9%. Western Union's dividend payout ratio is presently 69.12%.

Insider Activity

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

Wall Street Analyst Weigh In

Several research firms have issued reports on WU. Weiss Ratings downgraded shares of Western Union from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, June 5th. Barclays assumed coverage on Western Union in a research report on Tuesday, July 7th. They issued an "underweight" rating and a $7.00 target price on the stock. Finally, JPMorgan Chase & Co. decreased their price objective on Western Union from $9.00 to $8.00 and set an "underweight" rating on the stock in a report on Monday. Seven investment analysts have rated the stock with a Hold rating and six have given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Reduce" and an average target price of $8.55.

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.

Want to see what other hedge funds are holding WU? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for The Western Union Company (NYSE:WU - Free Report).

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.