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

Key Points

• The shares of Western Union have reached a new 52-week low, trading as low as $7.87, with a current consensus rating of "Reduce" from analysts.
• Recent quarterly earnings reported earnings per share (EPS) of $0.42, which is below the consensus estimate, alongside a projected EPS of 1.79 for the current fiscal year.
• Despite the struggles, insider buying has occurred, with CFO and CEO increasing their stock holdings by 8.41% and 23.96% respectively in recent transactions.

The Western Union Company (NYSE:WU - Get Free Report) reached a new 52-week low during mid-day trading on Thursday . The stock traded as low as $7.87 and last traded at $7.88, with a volume of 7006511 shares. The stock had previously closed at $8.16.

Wall Street Analysts Forecast Growth

WU has been the subject of several analyst reports. Monness Crespi & Hardt cut their price target on shares of Western Union from $7.50 to $7.00 and set a "sell" rating for the company in a report on Tuesday, July 29th. JPMorgan Chase & Co. set a $10.00 price target on shares of Western Union in a research note on Tuesday, July 29th. Zacks Research raised shares of Western Union to a "strong sell" rating in a research note on Monday, August 11th. Deutsche Bank Aktiengesellschaft assumed coverage on shares of Western Union in a research report on Thursday, July 17th. They set a "hold" rating and a $9.00 price target for the company. Finally, Keefe, Bruyette & Woods decreased their price target on shares of Western Union from $11.00 to $10.00 and set a "market perform" rating for the company in a research report on Tuesday, July 29th. Seven equities research analysts have rated the stock with a Hold rating and five have issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Reduce" and a consensus target price of $8.61.

Western Union Price Performance

The firm has a market cap of $2.55 billion, a price-to-earnings ratio of 2.99, a P/E/G ratio of 2.79 and a beta of 0.64. The business's 50-day simple moving average is $8.38 and its two-hundred day simple moving average is $9.16. 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 (NYSE:WU - Get Free Report) last posted its quarterly earnings results on Monday, July 28th. The credit services provider reported $0.42 earnings per share (EPS) 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 business 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 business posted $0.44 EPS. The business's revenue for the quarter 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. As a group, research analysts expect that The Western Union Company will post 1.79 EPS for the current fiscal year.

Western Union Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Tuesday, September 16th will be paid a dividend of $0.235 per share. This represents a $0.94 dividend on an annualized basis and a dividend yield of 11.9%. The ex-dividend date is Tuesday, September 16th. Western Union's payout ratio is presently 35.61%.

Insiders Place Their Bets

In related news, CFO Matthew Cagwin bought 17,500 shares of Western Union stock in a transaction on Monday, August 18th. The stock was acquired at an average price of $8.36 per share, with a total value of $146,300.00. Following the acquisition, the chief financial officer directly owned 225,611 shares of the company's stock, valued at $1,886,107.96. This represents a 8.41% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Devin Mcgranahan acquired 176,470 shares of the business's stock in a transaction dated Thursday, August 21st. The shares were acquired at an average cost of $8.49 per share, with a total value of $1,498,230.30. Following the acquisition, the chief executive officer directly owned 913,125 shares of the company's stock, valued at $7,752,431.25. This represents a 23.96% increase in their position. The disclosure for this purchase can be found here. Insiders own 1.58% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of WU. Marshall Financial Group LLC purchased a new stake in shares of Western Union during the second quarter valued at approximately $703,000. SG Americas Securities LLC bought a new position in shares of Western Union during the first quarter valued at approximately $1,018,000. Integrated Advisors Network LLC bought a new position in shares of Western Union during the first quarter valued at approximately $149,000. Asset Management One Co. Ltd. raised its holdings in shares of Western Union by 45.5% during the first quarter. Asset Management One Co. Ltd. now owns 68,622 shares of the credit services provider's stock valued at $726,000 after acquiring an additional 21,456 shares in the last quarter. Finally, GAMMA Investing LLC raised its holdings in shares of Western Union by 188.1% during the first quarter. GAMMA Investing LLC now owns 3,803 shares of the credit services provider's stock valued at $40,000 after acquiring an additional 2,483 shares in the last quarter. Hedge funds and other institutional investors own 91.81% of the company's stock.

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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