The Western Union Company (NYSE:WU) Receives Average Rating of "Reduce" from Brokerages

Key Points

• The Western Union Company has received a consensus rating of "Reduce" from brokerages, with five analysts giving it a sell rating and seven issuing a hold rating.
• Western Union's stock opened at $8.39, down 0.1%, and the company reported Q2 earnings of $0.42 per share, missing analyst expectations.
• Insider activity was noted as the CFO and CEO both increased their stakes in the company, with the CFO buying 17,500 shares and the CEO acquiring 176,470 shares.

The Western Union Company (NYSE:WU - Get Free Report) has earned a consensus rating of "Reduce" from the twelve brokerages that are presently covering the firm, MarketBeat.com reports. Five research analysts have rated the stock with a sell rating and seven have given a hold rating to the company. The average 1 year target price among analysts that have issued a report on the stock in the last year is $8.6111.

A number of equities analysts have recently commented on WU shares. Royal Bank Of Canada cut their price objective on Western Union from $13.00 to $9.00 and set a "sector perform" rating on the stock in a report on Tuesday, July 29th. Deutsche Bank Aktiengesellschaft started coverage on Western Union in a report on Thursday, July 17th. They issued a "hold" rating and a $9.00 price objective on the stock. Morgan Stanley cut their price objective on Western Union from $9.00 to $7.00 and set an "underweight" rating on the stock in a report on Tuesday, July 29th. JPMorgan Chase & Co. set a $10.00 price objective on Western Union in a report on Tuesday, July 29th. Finally, Barclays set a $8.00 price objective on Western Union and gave the stock an "underweight" rating in a report on Thursday, July 31st.

Insider Activity

In related news, CFO Matthew Cagwin bought 17,500 shares of the company's stock in a transaction that occurred on Monday, August 18th. The shares were acquired at an average cost of $8.36 per share, for a total transaction of $146,300.00. Following the acquisition, the chief financial officer owned 225,611 shares in the company, valued at $1,886,107.96. This represents a 8.41% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Devin Mcgranahan bought 176,470 shares of the company's stock in a transaction that occurred on Thursday, August 21st. The shares were bought at an average price of $8.49 per share, for a total transaction of $1,498,230.30. Following the completion of the acquisition, the chief executive officer owned 913,125 shares in the company, valued at approximately $7,752,431.25. This trade represents a 23.96% increase in their position. The disclosure for this purchase can be found here. Company insiders own 1.58% of the company's stock.

Institutional Investors Weigh In On Western Union

Hedge funds and other institutional investors have recently bought and sold shares of the business. SG Americas Securities LLC purchased a new stake in Western Union during the 1st quarter worth approximately $1,018,000. Integrated Advisors Network LLC purchased a new stake in Western Union during the 1st quarter worth approximately $149,000. Asset Management One Co. Ltd. increased its holdings in Western Union by 45.5% during the 1st quarter. Asset Management One Co. Ltd. now owns 68,622 shares of the credit services provider's stock worth $726,000 after purchasing an additional 21,456 shares during the last quarter. GAMMA Investing LLC increased its holdings in Western Union by 188.1% during the 1st quarter. GAMMA Investing LLC now owns 3,803 shares of the credit services provider's stock worth $40,000 after purchasing an additional 2,483 shares during the last quarter. Finally, Vontobel Holding Ltd. purchased a new stake in Western Union during the 1st quarter worth approximately $124,000. 91.81% of the stock is currently owned by hedge funds and other institutional investors.

Western Union Stock Down 0.1%

Shares of NYSE:WU opened at $8.39 on Tuesday. The stock's 50-day moving average price is $8.41 and its two-hundred day moving average price is $9.27. The company has a current ratio of 1.15, a quick ratio of 1.15 and a debt-to-equity ratio of 3.11. Western Union has a 12-month low of $7.89 and a 12-month high of $12.40. The firm has a market cap of $2.71 billion, a price-to-earnings ratio of 3.18, a PEG ratio of 2.88 and a beta of 0.64.

Western Union (NYSE:WU - Get Free Report) last issued its quarterly earnings results on Monday, July 28th. The credit services provider reported $0.42 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.44 by ($0.02). The business had revenue of $1.03 billion during the quarter, compared to analyst estimates of $1.04 billion. Western Union had a return on equity of 66.11% and a net margin of 21.83%.The firm's quarterly revenue was down 3.8% on a year-over-year basis. During the same period in the previous year, the business posted $0.44 earnings per share. Western Union has set its FY 2025 guidance at 1.650-1.750 EPS. On average, research analysts forecast that Western Union will post 1.79 EPS for the current year.

Western Union Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Tuesday, September 16th will be issued a dividend of $0.235 per share. This represents a $0.94 annualized dividend and a dividend yield of 11.2%. The ex-dividend date is Tuesday, September 16th. Western Union's dividend payout ratio (DPR) is presently 35.61%.

Western Union Company Profile

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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