Western Union (NYSE:WU) Sets New 12-Month Low - Should You Sell?

Key Points

• Western Union's stock has reached a new 52-week low of $7.99, closing at $8.07 with an overall trading volume of 856,675 shares.
• A consensus of Wall Street analysts has rated Western Union as a “Hold” with a price target averaging around $8.61, although some firms set targets as low as $8.00.
• The company reported earnings per share of $0.42 for the recent quarter, missing expectations and marking a 3.8% year-over-year revenue decline.

Shares of The Western Union Company (NYSE:WU - Get Free Report) reached a new 52-week low on Friday . The stock traded as low as $7.99 and last traded at $8.07, with a volume of 856675 shares traded. The stock had previously closed at $8.05.

Wall Street Analyst Weigh In

A number of research analysts have commented on WU shares. JPMorgan Chase & Co. set a $10.00 price target on shares of Western Union in a research report on Tuesday. Keefe, Bruyette & Woods reduced their price target on shares of Western Union from $11.00 to $10.00 and set a "market perform" rating on the stock in a research report on Tuesday. Barclays set a $8.00 price target on shares of Western Union and gave the company an "underweight" rating in a research report on Thursday. Susquehanna reiterated a "neutral" rating and set a $9.00 price target (down from $11.00) on shares of Western Union in a research report on Tuesday. Finally, Oppenheimer began coverage on shares of Western Union in a report on Monday, June 2nd. They issued a "market perform" rating on the stock. Four equities research analysts have rated the stock with a sell rating and eight have assigned a hold rating to the company. According to MarketBeat.com, Western Union presently has a consensus rating of "Hold" and a consensus price target of $8.61.

Western Union Price Performance

The company has a quick ratio of 1.15, a current ratio of 1.15 and a debt-to-equity ratio of 3.11. The firm has a fifty day moving average price of $8.71 and a two-hundred day moving average price of $9.75. The stock has a market capitalization of $2.60 billion, a P/E ratio of 3.04, a P/E/G ratio of 2.78 and a beta of 0.65.

Western Union (NYSE:WU - Get Free Report) last issued its quarterly 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 for the quarter, compared to the consensus estimate of $1.04 billion. During the same quarter in the previous year, the business earned $0.44 earnings per share. Western Union's revenue was down 3.8% compared to the same quarter last year. On average, analysts expect that The Western Union Company will post 1.79 EPS for the current year.

Western Union Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, June 30th. Investors of record on Monday, June 16th were issued a $0.235 dividend. This represents a $0.94 annualized dividend and a yield of 11.7%. The ex-dividend date was Monday, June 16th. Western Union's dividend payout ratio (DPR) is presently 35.61%.

Institutional Investors Weigh In On Western Union

A number of large investors have recently made changes to their positions in WU. Price T Rowe Associates Inc. MD grew 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 purchasing an additional 4,426,126 shares during the period. Invesco Ltd. grew its stake in shares of Western Union by 202.9% during the 4th quarter. Invesco Ltd. now owns 5,661,732 shares of the credit services provider's stock valued at $60,014,000 after purchasing an additional 3,792,683 shares during the period. AQR Capital Management LLC grew its stake in shares of Western Union by 39.0% during the 4th quarter. AQR Capital Management LLC now owns 11,206,431 shares of the credit services provider's stock valued at $118,788,000 after purchasing an additional 3,146,395 shares during the period. Brickwood Asset Management LLP bought a new stake in shares of Western Union during the 4th quarter valued at about $31,177,000. Finally, Norges Bank bought a new stake in shares of Western Union during the 4th quarter valued at about $22,984,000. 91.81% of the stock is currently owned by institutional investors.

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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