The Western Union Company (NYSE:WU) Given Consensus Recommendation of "Reduce" by Brokerages

Key Points

• Western Union has a consensus analyst rating of "Reduce" from 13 brokerages, with six sell ratings and seven hold ratings. The average 12-month price target is about $8.55.
• The company recently reported weaker-than-expected earnings, posting $0.25 EPS versus $0.40 expected and revenue of $963.5 million versus $1.06 billion expected. Western Union also guided FY2026 EPS to 1.75–1.85.
• Western Union pays a quarterly dividend of $0.235, equal to an annualized yield of about 11.9%. Insider selling and recent analyst downgrades have added to the negative sentiment around the stock.

The Western Union Company (NYSE:WU - Get Free Report) has been given an average recommendation of "Reduce" by the thirteen brokerages that are currently covering the firm, MarketBeat Ratings reports. Six equities research analysts have rated the stock with a sell recommendation and seven have issued a hold recommendation on the company. The average 1 year price target among brokerages that have issued ratings on the stock in the last year is $8.5455.

Several brokerages have recently commented on WU. Weiss Ratings downgraded Western Union from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, June 5th. JPMorgan Chase & Co. decreased their price target on Western Union from $9.00 to $8.00 and set an "underweight" rating for the company in a report on Monday. Finally, Barclays began coverage on Western Union in a research report on Tuesday, July 7th. They issued an "underweight" rating and a $7.00 price target for the company.

Western Union Stock Up 0.4%

Shares of NYSE WU opened at $7.88 on Tuesday. The company has a debt-to-equity ratio of 2.88, a current ratio of 1.11 and a quick ratio of 1.11. The company has a 50-day moving average price of $7.95 and a 200-day moving average price of $8.86. The stock has a market capitalization of $2.46 billion, a P/E ratio of 5.79, a P/E/G ratio of 1.00 and a beta of 0.46. Western Union has a 1 year low of $6.91 and a 1 year high of $10.35.

Western Union (NYSE:WU - Get Free Report) last posted its earnings results on Friday, April 24th. The credit services provider reported $0.25 earnings per share for the quarter, missing analysts' consensus estimates of $0.40 by ($0.15). The business had revenue of $963.50 million during the quarter, compared to analyst estimates of $1.06 billion. Western Union had a return on equity of 55.94% and a net margin of 10.88%.The company's revenue was down .1% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.41 EPS. Western Union has set its FY 2026 guidance at 1.750-1.850 EPS. On average, equities research analysts forecast that Western Union will post 1.76 EPS for the current fiscal year.

Western Union Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 16th were paid a $0.235 dividend. The ex-dividend date was Tuesday, June 16th. This represents a $0.94 annualized dividend and a dividend yield of 11.9%. Western Union's dividend payout ratio is presently 69.12%.

Insider Activity

In other Western Union news, insider Benjamin Carlton Adams sold 19,924 shares of the company's stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $9.23, for a total value of $183,898.52. Following the completion of the sale, the insider directly owned 234,689 shares of the company's stock, valued at approximately $2,166,179.47. This represents a 7.83% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Giovanni Angelini sold 6,000 shares of the stock in a transaction dated Tuesday, April 28th. The shares were sold at an average price of $9.47, for a total transaction of $56,820.00. Following the completion of the sale, the insider owned 311,292 shares of the company's stock, valued at approximately $2,947,935.24. This trade represents a 1.89% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Corporate insiders own 3.29% of the company's stock.

Hedge Funds Weigh In On Western Union

Several institutional investors have recently modified their holdings of the business. Accel Wealth Management purchased a new stake in shares of Western Union during the second quarter valued at approximately $143,000. Ramsey Quantitative Systems purchased a new position in Western Union in the second quarter worth $138,000. GAMMA Investing LLC grew its stake in Western Union by 27.9% in the 2nd quarter. GAMMA Investing LLC now owns 7,931 shares of the credit services provider's stock valued at $61,000 after purchasing an additional 1,729 shares during the period. Parallel Advisors LLC grew its stake in Western Union by 197.3% in the 1st quarter. Parallel Advisors LLC now owns 6,516 shares of the credit services provider's stock valued at $57,000 after purchasing an additional 4,324 shares during the period. Finally, Ritter Alpha LP purchased a new stake in shares of Western Union during the 1st quarter valued at $248,000. 91.81% of the stock is owned by institutional investors.

Western Union Company Profile

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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