Western Union FY2027 EPS Estimate Raised by Zacks Research

Key Points

• Zacks Research has raised its FY2027 earnings per share estimate for Western Union from $1.89 to $1.90, while maintaining a "Hold" rating on the stock.
• The company's quarterly earnings fell short of expectations, reporting $0.42 per share, missing the consensus estimate of $0.44 by $0.02.
• Western Union announced a quarterly dividend of $0.235 per share, which reflects an annualized dividend yield of 11.6%.

The Western Union Company (NYSE:WU - Free Report) - Research analysts at Zacks Research lifted their FY2027 earnings estimates for shares of Western Union in a note issued to investors on Wednesday, October 8th. Zacks Research analyst Team now forecasts that the credit services provider will post earnings of $1.90 per share for the year, up from their prior estimate of $1.89. Zacks Research has a "Hold" rating on the stock. The consensus estimate for Western Union's current full-year earnings is $1.79 per share.

Other equities analysts have also issued research reports about the company. Royal Bank Of Canada cut their target price on Western Union from $13.00 to $9.00 and set a "sector perform" rating on the stock in a research note on Tuesday, July 29th. Weiss Ratings raised Western Union from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Wednesday. Monness Crespi & Hardt cut their target price on Western Union from $7.50 to $7.00 and set a "sell" rating on the stock in a research note on Tuesday, July 29th. Barclays set a $8.00 target price on Western Union and gave the company an "underweight" rating in a research note on Thursday, July 31st. Finally, Keefe, Bruyette & Woods lowered their price target on Western Union from $10.00 to $9.00 and set a "market perform" rating for the company in a report on Wednesday, October 1st. Nine analysts have rated the stock with a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Reduce" and an average price target of $8.50.

Western Union Trading Down 0.1%

NYSE:WU opened at $8.08 on Friday. Western Union has a 1-year low of $7.85 and a 1-year high of $12.02. The business's 50-day moving average price is $8.31 and its two-hundred day moving average price is $8.95. The company has a current ratio of 1.15, a quick ratio of 1.15 and a debt-to-equity ratio of 3.11. The firm has a market capitalization of $2.61 billion, a price-to-earnings ratio of 3.06, a PEG ratio of 2.78 and a beta of 0.61.

Western Union (NYSE:WU - Get Free Report) last released its earnings results on Monday, July 28th. The credit services provider reported $0.42 earnings per share for the quarter, missing the consensus estimate of $0.44 by ($0.02). Western Union had a net margin of 21.83% and a return on equity of 66.11%. The company had revenue of $1.03 billion during the quarter, compared to analyst estimates of $1.04 billion. During the same period in the previous year, the company posted $0.44 EPS. The company'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.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the company. GAMMA Investing LLC grew its stake in Western Union by 2,948.2% in the first quarter. GAMMA Investing LLC now owns 40,236 shares of the credit services provider's stock valued at $426,000 after purchasing an additional 38,916 shares in the last quarter. UMB Bank n.a. grew its stake in Western Union by 80.2% in the first quarter. UMB Bank n.a. now owns 3,264 shares of the credit services provider's stock valued at $35,000 after purchasing an additional 1,453 shares in the last quarter. Farther Finance Advisors LLC grew its stake in Western Union by 84.4% in the first quarter. Farther Finance Advisors LLC now owns 32,534 shares of the credit services provider's stock valued at $343,000 after purchasing an additional 14,890 shares in the last quarter. Pallas Capital Advisors LLC bought a new position in Western Union in the first quarter valued at approximately $665,000. Finally, SG Americas Securities LLC bought a new position in Western Union in the first quarter valued at approximately $1,018,000. 91.81% of the stock is currently owned by institutional investors.

Insider Transactions at Western Union

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

Western Union Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 30th. Investors of record on Tuesday, September 16th were issued a dividend of $0.235 per share. The ex-dividend date was Tuesday, September 16th. This represents a $0.94 dividend on an annualized basis and a dividend yield of 11.6%. 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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