The Western Union Company $WU Shares Purchased by Royal Bank of Canada

Key Points

• Royal Bank of Canada increased its Western Union stake by 28.5% in the first quarter, purchasing 426,939 additional shares to own 1.92 million shares, or roughly 0.62% of the company. Institutional investors and hedge funds collectively hold 91.81% of WU.
• Analyst sentiment remains strongly negative: Morgan Stanley, Barclays, and Zacks Research lowered their views, while Western Union has an average “Strong Sell” rating and a consensus price target of $7.55.
• Western Union missed quarterly earnings expectations, reporting $0.31 EPS versus $0.42 expected, while revenue declined 1.3% year over year to $1.01 billion. The company announced a quarterly dividend of $0.235, equivalent to a 13.1% annualized yield.

Royal Bank of Canada raised its position in shares of The Western Union Company (NYSE:WU - Free Report) by 28.5% in the first quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 1,922,728 shares of the credit services provider's stock after purchasing an additional 426,939 shares during the quarter. Royal Bank of Canada owned about 0.62% of Western Union worth $16,785,000 as of its most recent SEC filing.

Several other hedge funds also recently modified their holdings of WU. Bessemer Group Inc. raised its position in Western Union by 52.6% in the first quarter. Bessemer Group Inc. now owns 520,779 shares of the credit services provider's stock worth $4,547,000 after acquiring an additional 179,423 shares in the last quarter. Capital Research Global Investors grew its stake in shares of Western Union by 35.3% in the 4th quarter. Capital Research Global Investors now owns 10,407,960 shares of the credit services provider's stock worth $96,898,000 after purchasing an additional 2,716,385 shares during the last quarter. Vanguard Group Inc. grew its stake in shares of Western Union by 3.5% in the 4th quarter. Vanguard Group Inc. now owns 34,471,400 shares of the credit services provider's stock worth $320,929,000 after purchasing an additional 1,171,810 shares during the last quarter. Hsbc Holdings PLC raised its holdings in shares of Western Union by 221.6% in the 4th quarter. Hsbc Holdings PLC now owns 520,789 shares of the credit services provider's stock worth $4,851,000 after purchasing an additional 358,877 shares in the last quarter. Finally, Fideuram Intesa Sanpaolo Private Banking S.P.A. bought a new stake in shares of Western Union in the 4th quarter worth approximately $3,234,000. 91.81% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of brokerages recently weighed in on WU. Morgan Stanley reduced their target price on shares of Western Union from $7.00 to $6.00 and set an "underweight" rating for the company in a report on Friday, July 31st. Monness Crespi & Hardt reaffirmed a "sell" rating and issued a $6.00 price target on shares of Western Union in a report on Friday, July 31st. Citigroup cut their price objective on Western Union from $8.50 to $7.00 and set a "neutral" rating for the company in a research report on Monday. Barclays reduced their price objective on Western Union from $7.00 to $6.00 and set an "underweight" rating for the company in a research note on Friday, July 31st. Finally, Zacks Research lowered Western Union from a "hold" rating to a "strong sell" rating in a research report on Tuesday. Six equities research analysts have rated the stock with a Hold rating and seven have given a Sell rating to the stock. According to data from MarketBeat, Western Union presently has an average rating of "Strong Sell" and an average target price of $7.55.

Western Union Stock Performance

Western Union stock opened at $7.17 on Friday. The firm's 50 day simple moving average is $7.70 and its 200-day simple moving average is $8.67. The company has a market cap of $2.24 billion, a P/E ratio of 5.83, a price-to-earnings-growth ratio of 1.25 and a beta of 0.47. 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 fifty-two week low of $6.27 and a fifty-two week high of $10.35.

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

Western Union Announces Dividend

The firm also recently announced 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. The ex-dividend date is Wednesday, September 16th. This represents a $0.94 dividend on an annualized basis and a dividend yield of 13.1%. 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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