Western Union (NYSE:WU) Hits New 12-Month Low - Time to Sell?

Key Points

• Western Union shares fell 4.4% to a new 52-week low of $6.24, well below their 50-day and 200-day moving averages. Analysts’ average price target is $7.55, with the stock carrying a “Strong Sell” consensus rating.
• The company’s latest quarterly results missed expectations, with EPS of $0.31 versus the $0.42 consensus and revenue declining 1.3% year over year to $1.01 billion.
• Western Union announced a quarterly dividend of $0.235 per share, implying a 15.1% annualized yield, though its 76.42% payout ratio and elevated debt-to-equity ratio of 2.95 highlight financial risks.

Shares of The Western Union Company (NYSE:WU - Get Free Report) hit a new 52-week low during mid-day trading on Friday . The company traded as low as $6.24 and last traded at $6.2550, with a volume of 8620250 shares changing hands. The stock had previously closed at $6.53.

Analysts Set New Price Targets

WU has been the subject of several recent analyst reports. Wolfe Research restated an "underperform" rating and issued a $8.00 price target on shares of Western Union in a report on Friday, July 31st. Cantor Fitzgerald lowered their target price on Western Union from $8.00 to $7.00 and set an "underweight" rating on the stock in a research report on Monday, August 3rd. Weiss Ratings upgraded shares of Western Union from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday, August 3rd. Citigroup decreased their target price on Western Union from $8.50 to $7.00 and set a "neutral" rating on the stock in a report on Monday, August 3rd. Finally, Royal Bank Of Canada dropped their price target on Western Union from $9.00 to $8.00 and set a "sector perform" rating on the stock 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 stock. According to data from MarketBeat.com, the stock currently has an average rating of "Strong Sell" and an average target price of $7.55.

Western Union Trading Down 4.4%

The company has a debt-to-equity ratio of 2.95, a quick ratio of 1.12 and a current ratio of 1.12. The company has a market capitalization of $1.95 billion, a price-to-earnings ratio of 5.08 and a beta of 0.50. The firm has a fifty day moving average price of $7.43 and a 200-day moving average price of $8.16.

Western Union (NYSE:WU - Get Free Report) last released its earnings results on Thursday, July 30th. The credit services provider reported $0.31 EPS for the quarter, missing the consensus estimate 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 during the quarter, compared to the consensus estimate of $1.02 billion. During the same period in the prior year, the business earned $0.37 earnings per share. Western Union's quarterly 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 analysts anticipate that The Western Union Company will post 1.29 EPS for the current year.

Western Union Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 16th will be issued a $0.235 dividend. This represents a $0.94 dividend on an annualized basis and a dividend yield of 15.1%. The ex-dividend date of this dividend is Wednesday, September 16th. Western Union's dividend payout ratio (DPR) is currently 76.42%.

Institutional Trading of Western Union

Large investors have recently bought and sold shares of the business. Kestra Investment Management LLC increased its holdings in Western Union by 0.6% during the 4th quarter. Kestra Investment Management LLC now owns 239,428 shares of the credit services provider's stock valued at $2,229,000 after purchasing an additional 1,398 shares in the last quarter. PFG Investments LLC boosted its stake in Western Union by 6.6% in the first quarter. PFG Investments LLC now owns 23,382 shares of the credit services provider's stock worth $204,000 after purchasing an additional 1,454 shares in the last quarter. EverSource Wealth Advisors LLC grew its holdings in shares of Western Union by 23.2% during the first quarter. EverSource Wealth Advisors LLC now owns 8,020 shares of the credit services provider's stock worth $70,000 after purchasing an additional 1,509 shares during the last quarter. Fifth Third Wealth Advisors LLC increased its stake in shares of Western Union by 14.4% in the first quarter. Fifth Third Wealth Advisors LLC now owns 12,970 shares of the credit services provider's stock valued at $113,000 after buying an additional 1,629 shares in the last quarter. Finally, Greenwich Wealth Management LLC increased its stake in shares of Western Union by 11.1% in the fourth quarter. Greenwich Wealth Management LLC now owns 16,558 shares of the credit services provider's stock valued at $154,000 after buying an additional 1,651 shares in the last quarter. 91.81% of the stock is owned by institutional investors and hedge funds.

About Western Union

Western Union Company NYSE: WU is a global provider of money movement and payment services. The company enables consumers and businesses to send and receive money across borders and within individual markets through digital platforms, mobile applications and a network of retail agent locations.

Its services include consumer money transfers, international remittances, bill payments and money orders. Customers can typically initiate transfers online, through the Western Union app or at participating retail locations, with recipients able to collect funds in cash or receive them through eligible bank accounts, digital wallets or other payment methods, depending on the destination market.

Western Union traces its origins to 1851, when it was established as a telegraph company in the United States.

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.