The Western Union Company (NYSE:WU) Given Average Recommendation of "Reduce" by Analysts

Key Points

• Analyst consensus: Fourteen analysts give WU an average recommendation of "Reduce" (5 sell, 9 hold) with a 12‑month average price target of $8.82.
• Recent earnings miss: Western Union reported $0.25 EPS versus $0.40 expected and $963.5M revenue versus $1.06B expected, and set FY2026 guidance of $1.75–$1.85 EPS (analysts expect $1.77).
• High dividend yield: The company pays a $0.94 annualized dividend for a ~10.5% yield with a ~69% payout ratio, while trading at a PE of about 6.6 and a market cap near $2.8B.

The Western Union Company (NYSE:WU - Get Free Report) has been given an average recommendation of "Reduce" by the fourteen brokerages that are covering the company, Marketbeat Ratings reports. Five equities research analysts have rated the stock with a sell rating and nine have assigned a hold rating to the company. The average 12-month price objective among analysts that have updated their coverage on the stock in the last year is $8.8182.

Several research firms recently issued reports on WU. Cantor Fitzgerald upgraded Western Union to a "strong sell" rating in a research note on Tuesday, January 27th. Weiss Ratings restated a "hold (c-)" rating on shares of Western Union in a research note on Wednesday, January 21st. Finally, Keefe, Bruyette & Woods boosted their price target on Western Union from $9.00 to $10.00 and gave the company a "market perform" rating in a research note on Friday, January 2nd.

Western Union Stock Performance

WU opened at $8.95 on Wednesday. The business has a fifty day simple moving average of $9.25 and a 200 day simple moving average of $9.20. The company has a market capitalization of $2.79 billion, a PE ratio of 6.58, a price-to-earnings-growth ratio of 1.13 and a beta of 0.50. Western Union has a 1 year low of $7.85 and a 1 year high of $10.35. The company has a debt-to-equity ratio of 2.88, a current ratio of 1.11 and a quick ratio of 1.19.

Western Union (NYSE:WU - Get Free Report) last released its quarterly earnings results on Friday, April 24th. The credit services provider reported $0.25 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.40 by ($0.15). The firm had revenue of $963.50 million during the quarter, compared to the consensus estimate of $1.06 billion. Western Union had a net margin of 10.88% and a return on equity of 55.94%. The business's revenue for the quarter was down .1% compared to the same quarter last year. During the same quarter last year, the firm earned $0.41 earnings per share. Western Union has set its FY 2026 guidance at 1.750-1.850 EPS. Research analysts expect that Western Union will post 1.77 EPS for the current year.

Western Union Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Tuesday, March 17th were paid a $0.235 dividend. The ex-dividend date was Tuesday, March 17th. This represents a $0.94 annualized dividend and a yield of 10.5%. Western Union's payout ratio is 69.12%.

Institutional Trading of Western Union

Institutional investors have recently modified their holdings of the stock. Wilmington Savings Fund Society FSB lifted its position in shares of Western Union by 606.7% during the 3rd quarter. Wilmington Savings Fund Society FSB now owns 3,265 shares of the credit services provider's stock valued at $26,000 after acquiring an additional 2,803 shares during the period. UMB Bank n.a. lifted its position in shares of Western Union by 260.7% during the 3rd quarter. UMB Bank n.a. now owns 3,593 shares of the credit services provider's stock valued at $29,000 after acquiring an additional 2,597 shares during the period. Ascentis Independent Advisors bought a new stake in shares of Western Union during the 1st quarter valued at $30,000. Salomon & Ludwin LLC lifted its position in shares of Western Union by 1,546.5% during the 4th quarter. Salomon & Ludwin LLC now owns 3,326 shares of the credit services provider's stock valued at $31,000 after acquiring an additional 3,124 shares during the period. Finally, Fifth Third Bancorp lifted its position in shares of Western Union by 67.0% during the 4th quarter. Fifth Third Bancorp now owns 3,331 shares of the credit services provider's stock valued at $31,000 after acquiring an additional 1,336 shares during the period. 91.81% of the stock is currently owned by institutional investors.

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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