Western Union (NYSE:WU) Hits New 1-Year Low - Should You Sell?

The Western Union Company (NYSE:WU - Get Free Report) hit a new 52-week low on Monday . The stock traded as low as $8.25 and last traded at $8.27, with a volume of 2513244 shares. The stock had previously closed at $8.35.

Wall Street Analyst Weigh In

Several research firms have recently commented on WU. UBS Group reissued a "neutral" rating and issued a $10.50 price target (down from $11.00) on shares of Western Union in a report on Thursday, April 24th. Oppenheimer began coverage on Western Union in a report on Monday, June 2nd. They issued a "market perform" rating for the company. Royal Bank Of Canada lowered their price target on shares of Western Union from $14.00 to $13.00 and set a "sector perform" rating on the stock in a research note on Thursday, April 24th. Keefe, Bruyette & Woods reduced their price objective on shares of Western Union from $12.00 to $11.00 and set a "market perform" rating for the company in a research note on Thursday, April 24th. Finally, Susquehanna decreased their price objective on shares of Western Union from $12.00 to $11.00 and set a "neutral" rating on the stock in a report on Thursday, April 24th. Four investment analysts have rated the stock with a sell rating and eight have issued a hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $10.78.

Western Union Stock Down 0.4%

The firm's fifty day simple moving average is $9.12 and its 200-day simple moving average is $9.95. The company has a market cap of $2.75 billion, a PE ratio of 3.10, a P/E/G ratio of 2.36 and a beta of 0.65. The company has a quick ratio of 1.15, a current ratio of 1.15 and a debt-to-equity ratio of 2.97.

Western Union (NYSE:WU - Get Free Report) last posted its earnings results on Wednesday, April 23rd. The credit services provider reported $0.41 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.40 by $0.01. Western Union had a return on equity of 77.19% and a net margin of 22.08%. The firm had revenue of $983.60 million for the quarter, compared to analyst estimates of $1.01 billion. During the same quarter in the prior year, the company earned $0.45 EPS. Western Union's revenue was down 6.2% on a year-over-year basis. As a group, equities research analysts expect that The Western Union Company will post 1.79 earnings per share for the current fiscal year.

Western Union Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, June 30th. Shareholders of record on Monday, June 16th were paid a dividend of $0.235 per share. The ex-dividend date was Monday, June 16th. This represents a $0.94 annualized dividend and a dividend yield of 11.30%. Western Union's dividend payout ratio is currently 35.07%.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. increased its stake in Western Union by 0.8% in the fourth quarter. Vanguard Group Inc. now owns 38,055,661 shares of the credit services provider's stock valued at $403,390,000 after purchasing an additional 317,711 shares during the last quarter. Price T Rowe Associates Inc. MD increased its stake in shares of Western Union by 18.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 28,983,265 shares of the credit services provider's stock valued at $307,224,000 after acquiring an additional 4,426,126 shares during the last quarter. Charles Schwab Investment Management Inc. increased its stake in shares of Western Union by 5.8% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 13,217,217 shares of the credit services provider's stock valued at $139,838,000 after acquiring an additional 728,138 shares during the last quarter. AQR Capital Management LLC boosted its position in shares of Western Union by 16.4% in the first quarter. AQR Capital Management LLC now owns 13,041,493 shares of the credit services provider's stock worth $136,675,000 after acquiring an additional 1,835,062 shares during the last quarter. Finally, Schroder Investment Management Group grew its holdings in Western Union by 32.1% in the fourth quarter. Schroder Investment Management Group now owns 9,021,308 shares of the credit services provider's stock valued at $95,626,000 after purchasing an additional 2,194,403 shares during the period. 91.81% of the stock is currently owned by institutional investors and hedge funds.

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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