Western Union (NYSE:WU) Reaches New 52-Week Low - Here's Why

Key Points

• Western Union shares fell to a new 52-week low of $6.09, below the prior close of $6.22, with the stock trading well below its 50-day and 200-day moving averages.
• Analysts have continued cutting price targets after Western Union missed quarterly earnings estimates, reporting $0.31 in EPS versus the expected $0.42. The consensus rating is “Strong Sell”, with an average price target of $7.55.
• The company maintained its quarterly dividend of $0.235 per share, implying a high annualized yield of approximately 15.4%, though its payout ratio is elevated at 76.42%.

The Western Union Company (NYSE:WU - Get Free Report)'s share price reached a new 52-week low on Thursday . The stock traded as low as $6.09 and last traded at $6.0950, with a volume of 8122158 shares changing hands. The stock had previously closed at $6.22.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on WU shares. Cantor Fitzgerald dropped their price objective on Western Union from $8.00 to $7.00 and set an "underweight" rating for the company in a research note on Monday, August 3rd. Citigroup lowered their target price on Western Union from $8.50 to $7.00 and set a "neutral" rating for the company in a report on Monday, August 3rd. Susquehanna reduced their target price on shares of Western Union from $10.00 to $8.00 and set a "neutral" rating on the stock in a report on Friday, July 31st. Morgan Stanley cut their price objective on Western Union from $7.00 to $6.00 and set an "underweight" rating on the stock in a research report on Friday, July 31st. Finally, Wolfe Research reiterated an "underperform" rating and issued a $8.00 price objective on shares of Western Union 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. According to MarketBeat, the company has an average rating of "Strong Sell" and an average price target of $7.55.

Western Union Price Performance

The company has a market capitalization of $1.90 billion, a PE ratio of 4.96 and a beta of 0.50. The company has a current ratio of 1.12, a quick ratio of 1.12 and a debt-to-equity ratio of 2.95. The stock has a fifty day simple moving average of $7.29 and a 200-day simple moving average of $8.06.

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

Western Union Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Wednesday, September 16th will be given a $0.235 dividend. This represents a $0.94 dividend on an annualized basis and a dividend yield of 15.4%. The ex-dividend date of this dividend is Wednesday, September 16th. Western Union's dividend payout ratio (DPR) is 76.42%.

Institutional Investors Weigh In On Western Union

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new position in shares of Western Union during the second quarter worth about $241,806,000. Algebris UK Ltd. purchased a new position in Western Union in the 2nd quarter valued at $21,224,000. Capital Research Global Investors grew its position in 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 valued at $96,898,000 after buying an additional 2,716,385 shares during the last quarter. Bank of New York Mellon Corp acquired a new stake in shares of Western Union in the 2nd quarter worth $20,312,000. Finally, Bank of America Corp DE purchased a new stake in shares of Western Union in the second quarter valued at about $17,743,000. Hedge funds and other institutional investors own 91.81% of the company's stock.

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.

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