Keefe, Bruyette & Woods Has Lowered Expectations for Western Union (NYSE:WU) Stock Price

Key Points

• Keefe, Bruyette & Woods has adjusted their price target for Western Union from $10.00 to $9.00, indicating a potential upside of 12.29% from its previous close.
• Several analysts have also lowered their price targets, with a consensus rating of "Reduce" and an average target price of $8.50.
• Insider transactions include CEO Devin Mcgranahan purchasing 176,470 shares at an average price of $8.49, increasing his holdings significantly.

Western Union (NYSE:WU - Get Free Report) had its price objective reduced by research analysts at Keefe, Bruyette & Woods from $10.00 to $9.00 in a report issued on Wednesday,Benzinga reports. The brokerage presently has a "market perform" rating on the credit services provider's stock. Keefe, Bruyette & Woods' target price suggests a potential upside of 12.29% from the stock's previous close.

Other analysts have also issued reports about the company. Susquehanna lowered their price target on Western Union from $11.00 to $9.00 and set a "neutral" rating on the stock in a research note on Tuesday, July 29th. JPMorgan Chase & Co. set a $10.00 price objective on Western Union in a research report on Tuesday, July 29th. Barclays set a $8.00 price objective on Western Union and gave the company an "underweight" rating in a research note on Thursday, July 31st. Royal Bank Of Canada lowered their price target on Western Union from $13.00 to $9.00 and set a "sector perform" rating for the company in a research report on Tuesday, July 29th. Finally, Morgan Stanley cut their price objective on Western Union from $9.00 to $7.00 and set an "underweight" rating on the stock in a research note on Tuesday, July 29th. Seven research analysts have rated the stock with a Hold rating and five have issued a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Reduce" and an average target price of $8.50.

Western Union Price Performance

Shares of WU stock traded up $0.03 on Wednesday, reaching $8.02. The company's stock had a trading volume of 3,534,659 shares, compared to its average volume of 7,597,730. The company has a market capitalization of $2.59 billion, a price-to-earnings ratio of 3.03, a price-to-earnings-growth ratio of 2.75 and a beta of 0.64. The stock's fifty day simple moving average is $8.36 and its 200-day simple moving average is $9.07. Western Union has a 1 year low of $7.85 and a 1 year high of $12.02. The company has a current ratio of 1.15, a quick ratio of 1.15 and a debt-to-equity ratio of 3.11.

Western Union (NYSE:WU - Get Free Report) last posted its quarterly earnings results 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). The company had revenue of $1.03 billion during the quarter, compared to analysts' expectations of $1.04 billion. Western Union had a return on equity of 66.11% and a net margin of 21.83%.The company's quarterly revenue was down 3.8% on a year-over-year basis. During the same period in the prior year, the business earned $0.44 EPS. Western Union has set its FY 2025 guidance at 1.650-1.750 EPS. Analysts forecast that Western Union will post 1.79 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CEO Devin Mcgranahan bought 176,470 shares of the business's stock in a transaction dated Thursday, August 21st. The stock was bought at an average price of $8.49 per share, for a total transaction of $1,498,230.30. Following the completion of the purchase, the chief executive officer owned 913,125 shares of the company's stock, valued at approximately $7,752,431.25. The trade was a 23.96% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Matthew Cagwin purchased 17,500 shares of the stock in a transaction that occurred on Monday, August 18th. The stock was bought at an average cost of $8.36 per share, with a total value of $146,300.00. Following the acquisition, the chief financial officer owned 225,611 shares of the company's stock, valued at $1,886,107.96. This represents a 8.41% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders own 1.58% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Marshall Financial Group LLC bought a new stake in shares of Western Union during the 2nd quarter worth approximately $703,000. SG Americas Securities LLC bought a new stake in shares of Western Union during the first quarter worth about $1,018,000. Integrated Advisors Network LLC purchased a new position in Western Union during the first quarter worth about $149,000. Asset Management One Co. Ltd. raised its position in Western Union by 45.5% in the first quarter. Asset Management One Co. Ltd. now owns 68,622 shares of the credit services provider's stock worth $726,000 after acquiring an additional 21,456 shares during the period. Finally, GAMMA Investing LLC boosted its stake in Western Union by 188.1% in the first quarter. GAMMA Investing LLC now owns 3,803 shares of the credit services provider's stock valued at $40,000 after acquiring an additional 2,483 shares during the last quarter. Institutional investors and hedge funds own 91.81% of the company's stock.

About Western Union

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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