The Western Union Company (NYSE:WU) Receives Consensus Recommendation of "Reduce" from Brokerages

Key Points

• Western Union now carries a consensus analyst rating of "Reduce", with 6 sell ratings and 7 hold ratings; the average 12-month price target is about $8.82.
• The company’s recent earnings missed expectations, reporting $0.25 EPS versus $0.40 expected, while revenue came in at $963.5 million versus the $1.06 billion consensus estimate.
• Western Union also declared a quarterly dividend of $0.235 per share, which annualizes to $0.94 and implies a high 13.2% yield.

Shares of The Western Union Company (NYSE:WU - Get Free Report) have received a consensus rating of "Reduce" from the thirteen research firms that are presently covering the stock, MarketBeat reports. Six equities research analysts have rated the stock with a sell rating and seven have given a hold rating to the company. The average 12-month price objective among brokerages that have issued a report on the stock in the last year is $8.8182.

Separately, Weiss Ratings cut shares of Western Union from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, June 5th.

Insider Transactions at Western Union

In other Western Union news, insider Benjamin Carlton Adams sold 19,924 shares of the firm's stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $9.23, for a total transaction of $183,898.52. Following the completion of the transaction, the insider owned 234,689 shares in the company, valued at $2,166,179.47. This trade represents a 7.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Giovanni Angelini sold 6,000 shares of the firm's stock in a transaction dated Tuesday, April 28th. The stock was sold at an average price of $9.47, for a total transaction of $56,820.00. Following the transaction, the insider owned 311,292 shares of the company's stock, valued at approximately $2,947,935.24. This 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. 3.29% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. Wilmington Savings Fund Society FSB raised its stake in shares of Western Union by 606.7% in the third 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 last quarter. Ascentis Independent Advisors acquired a new stake in shares of Western Union in the first quarter valued at approximately $30,000. Salomon & Ludwin LLC raised its position in Western Union by 1,546.5% in the 4th quarter. Salomon & Ludwin LLC now owns 3,326 shares of the credit services provider's stock worth $31,000 after purchasing an additional 3,124 shares during the last quarter. Fifth Third Bancorp raised its position in Western Union by 67.0% in the 4th quarter. Fifth Third Bancorp now owns 3,331 shares of the credit services provider's stock worth $31,000 after purchasing an additional 1,336 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd raised its position in Western Union by 179.6% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 3,341 shares of the credit services provider's stock worth $31,000 after purchasing an additional 2,146 shares during the last quarter. Institutional investors own 91.81% of the company's stock.

Western Union Stock Down 0.6%

NYSE WU opened at $7.13 on Friday. The company has a debt-to-equity ratio of 2.88, a quick ratio of 1.11 and a current ratio of 1.11. The firm has a 50-day simple moving average of $8.48 and a 200 day simple moving average of $9.06. Western Union has a twelve month low of $7.09 and a twelve month high of $10.35. The stock has a market cap of $2.23 billion, a PE ratio of 5.24, a PEG ratio of 0.91 and a beta of 0.46.

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

Western Union Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Tuesday, June 16th will be paid a dividend of $0.235 per share. The ex-dividend date is Tuesday, June 16th. This represents a $0.94 dividend on an annualized basis and a yield of 13.2%. Western Union's dividend payout ratio (DPR) is currently 69.12%.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.