Western Union (NYSE:WU) Hits New 52-Week Low - Should You Sell?

Key Points

• Western Union stock hit a new 52-week low near $7.21 and was last trading around $7.27, reflecting a roughly 3% drop on the day.
• Analysts remain cautious: Weiss Ratings downgraded the stock to sell, and the broader consensus is a Reduce with an average target price of $8.82.
• Recent earnings missed expectations, with quarterly EPS of $0.25 versus $0.40 expected and revenue of $963.5 million versus $1.06 billion forecast, even as the company continues to offer a high dividend yield of about 12.9%.

The Western Union Company (NYSE:WU - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Wednesday . The company traded as low as $7.21 and last traded at $7.2650, with a volume of 8658525 shares traded. The stock had previously closed at $7.49.

Analyst Ratings Changes

Separately, Weiss Ratings downgraded shares of Western Union from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, June 5th. Seven equities research analysts have rated the stock with a Hold rating and six have assigned a Sell rating to the company's stock. According to data from MarketBeat, Western Union has an average rating of "Reduce" and an average target price of $8.82.

Western Union Stock Down 3.0%

The firm has a market capitalization of $2.27 billion, a PE ratio of 5.34, a price-to-earnings-growth ratio of 0.96 and a beta of 0.46. The company has a current ratio of 1.11, a quick ratio of 1.11 and a debt-to-equity ratio of 2.88. The firm has a 50-day moving average of $8.54 and a two-hundred day moving average of $9.09.

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

Western Union Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 16th will be given a $0.235 dividend. The ex-dividend date of this dividend is Tuesday, June 16th. This represents a $0.94 annualized dividend and a dividend yield of 12.9%. Western Union's dividend payout ratio is presently 69.12%.

Insiders Place Their Bets

In related news, 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 sale, the insider directly owned 311,292 shares in the company, valued at approximately $2,947,935.24. This trade represents a 1.89% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Benjamin Carlton Adams sold 19,924 shares of the company's stock in a transaction on 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 of the company's stock, valued at $2,166,179.47. This trade represents a 7.83% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 3.29% of the company's stock.

Hedge Funds Weigh In On Western Union

A number of institutional investors have recently added to or reduced their stakes in WU. Integrated Wealth Concepts LLC grew its stake in Western Union by 15.5% during the 1st quarter. Integrated Wealth Concepts LLC now owns 39,859 shares of the credit services provider's stock valued at $422,000 after purchasing an additional 5,351 shares in the last quarter. Goldman Sachs Group Inc. boosted its stake in shares of Western Union by 27.4% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,964,972 shares of the credit services provider's stock valued at $20,789,000 after buying an additional 422,715 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of Western Union by 9.0% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,861,908 shares of the credit services provider's stock valued at $19,699,000 after buying an additional 154,110 shares during the last quarter. Focus Partners Wealth grew its position in shares of Western Union by 93.5% during the first quarter. Focus Partners Wealth now owns 27,535 shares of the credit services provider's stock worth $291,000 after buying an additional 13,302 shares in the last quarter. Finally, Prudential Financial Inc. grew its position in shares of Western Union by 24.7% during the second quarter. Prudential Financial Inc. now owns 36,874 shares of the credit services provider's stock worth $310,000 after buying an additional 7,314 shares in the last quarter. Institutional investors and hedge funds own 91.81% of the company's stock.

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.

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