The Western Union Company (NYSE:WU) Given Average Rating of "Reduce" by Brokerages

Key Points

• The Western Union Company has received an average rating of "Reduce" from thirteen brokerages, with four analysts recommending sell and nine suggesting hold.
• The stock's average 12-month price target is $8.50, with recent ratings adjustments lowering targets to as low as $8.00.
• Western Union reported quarterly earnings of $0.42 per share, missing expectations, and announced a quarterly dividend yielding 11.8% based on an annualized payout of $0.94 per share.

Shares of The Western Union Company (NYSE:WU - Get Free Report) have been given an average recommendation of "Reduce" by the thirteen brokerages that are covering the stock, MarketBeat reports. Four equities research analysts have rated the stock with a sell recommendation and nine have assigned a hold recommendation to the company. The average 12 month price target among brokerages that have issued a report on the stock in the last year is $8.50.

Several equities research analysts have issued reports on the stock. Deutsche Bank Aktiengesellschaft assumed coverage on shares of Western Union in a research note on Thursday, July 17th. They set a "hold" rating and a $9.00 price objective for the company. Susquehanna decreased their price objective on shares of Western Union from $11.00 to $9.00 and set a "neutral" rating for the company in a research note on Tuesday, July 29th. Zacks Research upgraded shares of Western Union from a "strong sell" rating to a "hold" rating in a research note on Tuesday. Barclays set a $8.00 price objective on shares of Western Union and gave the stock an "underweight" rating in a research note on Thursday, July 31st. Finally, Royal Bank Of Canada decreased their price objective on shares of Western Union from $13.00 to $9.00 and set a "sector perform" rating for the company in a research note on Tuesday, July 29th.

Western Union Price Performance

Western Union stock opened at $7.94 on Friday. Western Union has a 1 year low of $7.85 and a 1 year high of $12.02. The firm has a 50 day moving average price of $8.31 and a 200 day moving average price of $8.94. The company has a market cap of $2.56 billion, a price-to-earnings ratio of 3.01, a PEG ratio of 2.77 and a beta of 0.61. The company has a debt-to-equity ratio of 3.11, a quick ratio of 1.15 and a current ratio of 1.15.

Western Union (NYSE:WU - Get Free Report) last released its quarterly earnings data on Monday, July 28th. The credit services provider reported $0.42 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.44 by ($0.02). Western Union had a return on equity of 66.11% and a net margin of 21.83%.The business had revenue of $1.03 billion for the quarter, compared to analysts' expectations of $1.04 billion. During the same quarter in the prior year, the firm earned $0.44 earnings per share. Western Union's quarterly revenue was down 3.8% compared to the same quarter last year. Western Union has set its FY 2025 guidance at 1.650-1.750 EPS. Sell-side analysts predict that Western Union will post 1.79 earnings per share for the current year.

Western Union Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 30th. Stockholders of record on Tuesday, September 16th were given a dividend of $0.235 per share. This represents a $0.94 dividend on an annualized basis and a dividend yield of 11.8%. The ex-dividend date of this dividend was Tuesday, September 16th. Western Union's payout ratio is presently 35.61%.

Insiders Place Their Bets

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

Institutional Trading of Western Union

Several institutional investors have recently added to or reduced their stakes in the stock. Charles Schwab Investment Management Inc. raised its holdings in Western Union by 0.4% in the second quarter. Charles Schwab Investment Management Inc. now owns 13,275,287 shares of the credit services provider's stock valued at $111,778,000 after acquiring an additional 58,070 shares in the last quarter. Schroder Investment Management Group raised its holdings in Western Union by 48.5% in the second quarter. Schroder Investment Management Group now owns 13,240,037 shares of the credit services provider's stock valued at $111,481,000 after acquiring an additional 4,321,604 shares in the last quarter. AQR Capital Management LLC raised its holdings in Western Union by 16.4% in the first quarter. AQR Capital Management LLC now owns 13,041,493 shares of the credit services provider's stock valued at $136,675,000 after acquiring an additional 1,835,062 shares in the last quarter. Discerene Group LP raised its holdings in shares of Western Union by 55.1% during the second quarter. Discerene Group LP now owns 10,366,558 shares of the credit services provider's stock worth $87,286,000 after purchasing an additional 3,684,366 shares during the period. Finally, Northern Trust Corp raised its holdings in shares of Western Union by 1.6% during the first quarter. Northern Trust Corp now owns 7,175,171 shares of the credit services provider's stock worth $75,913,000 after purchasing an additional 110,902 shares during the period. 91.81% of the stock is owned by institutional investors and hedge funds.

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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