Western Union (NYSE:WU) Posts Earnings Results, Beats Expectations By $0.04 EPS

Key Points

• Western Union reported quarterly earnings of $0.47 EPS, exceeding analysts' expectations of $0.43 EPS by $0.04.
• The company declared a quarterly dividend of $0.235 per share, representing an annualized dividend of $0.94 and a dividend yield of 11.5%.
• Shares of Western Union have seen increased trading activity, with a 0.4% rise on the announcement day, reaching a share price of $8.16.

Western Union (NYSE:WU - Get Free Report) posted its quarterly earnings data on Thursday. The credit services provider reported $0.47 earnings per share for the quarter, topping analysts' consensus estimates of $0.43 by $0.04, Zacks reports. Western Union had a net margin of 21.83% and a return on equity of 66.11%.

Western Union Stock Up 0.4%

Shares of WU traded up $0.03 during mid-day trading on Thursday, reaching $8.16. The company's stock had a trading volume of 14,916,591 shares, compared to its average volume of 7,972,387. The stock has a market cap of $2.64 billion, a PE ratio of 3.09, a price-to-earnings-growth ratio of 2.78 and a beta of 0.61. Western Union has a 12-month low of $7.85 and a 12-month high of $11.94. The company has a debt-to-equity ratio of 3.11, a current ratio of 1.15 and a quick ratio of 1.15. The company's 50 day moving average is $8.31 and its 200 day moving average is $8.81.

Western Union Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, September 30th. Stockholders of record on Tuesday, September 16th were given a dividend of $0.235 per share. This represents a $0.94 annualized dividend and a dividend yield of 11.5%. The ex-dividend date of this dividend was Tuesday, September 16th. Western Union's dividend payout ratio is currently 35.61%.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on WU. JPMorgan Chase & Co. set a $10.00 price objective on Western Union in a research note on Tuesday, July 29th. Monness Crespi & Hardt lowered their price objective on shares of Western Union from $7.50 to $7.00 and set a "sell" rating for the company in a research note on Tuesday, July 29th. Citigroup started coverage on shares of Western Union in a report on Wednesday. They set a "neutral" rating and a $9.00 target price on the stock. Susquehanna dropped their price target on shares of Western Union from $11.00 to $9.00 and set a "neutral" rating for the company in a research note on Tuesday, July 29th. Finally, Keefe, Bruyette & Woods reduced their price objective on Western Union from $10.00 to $9.00 and set a "market perform" rating on the stock in a research note on Wednesday, October 1st. Ten investment analysts have rated the stock with a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Reduce" and an average target price of $8.55.

Insider Activity at Western Union

In related news, CEO Devin Mcgranahan purchased 176,470 shares of Western Union stock in a transaction that occurred on Thursday, August 21st. The stock was purchased at an average cost of $8.49 per share, with a total value of $1,498,230.30. Following the completion of the transaction, the chief executive officer directly owned 913,125 shares in the company, valued at approximately $7,752,431.25. The trade was a 23.96% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Matthew Cagwin acquired 17,500 shares of the company's stock in a transaction on Monday, August 18th. The shares were purchased at an average cost of $8.36 per share, for a total transaction of $146,300.00. Following the acquisition, the chief financial officer owned 225,611 shares of the company's stock, valued at approximately $1,886,107.96. The trade was 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 insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Snowden Capital Advisors LLC purchased a new position in Western Union during the 2nd quarter worth $110,000. EP Wealth Advisors LLC lifted its position in Western Union by 69.0% during the 2nd quarter. EP Wealth Advisors LLC now owns 19,299 shares of the credit services provider's stock worth $162,000 after acquiring an additional 7,879 shares during the period. Caxton Associates LLP purchased a new stake in shares of Western Union during the second quarter worth approximately $253,000. Focus Partners Wealth increased its stake in Western Union by 93.5% in the 1st quarter. Focus Partners Wealth now owns 27,535 shares of the credit services provider's stock valued at $291,000 after buying an additional 13,302 shares during the period. Finally, Prudential Financial Inc. lifted its stake in shares of Western Union by 24.7% in the 2nd quarter. Prudential Financial Inc. now owns 36,874 shares of the credit services provider's stock worth $310,000 after acquiring an additional 7,314 shares during the period. Hedge funds and other institutional investors own 91.81% of the company's stock.

About Western Union

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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