Western Union (NYSE:WU) Hits New 12-Month Low - Here's Why

The Western Union Company (NYSE:WU - Get Free Report) shares reached a new 52-week low during mid-day trading on Wednesday . The stock traded as low as $9.74 and last traded at $9.91, with a volume of 9768611 shares changing hands. The stock had previously closed at $10.11.

Analysts Set New Price Targets

A number of brokerages have commented on WU. JMP Securities reaffirmed a "market perform" rating on shares of Western Union in a report on Thursday, April 24th. Royal Bank of Canada decreased 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. Monness Crespi & Hardt cut shares of Western Union from a "neutral" rating to a "sell" rating and set a $7.50 price objective for the company. in a research note on Thursday, April 24th. Susquehanna decreased their target price on shares of Western Union from $12.00 to $11.00 and set a "neutral" rating on the stock in a research report on Thursday, April 24th. Finally, Morgan Stanley dropped their price target on shares of Western Union from $10.00 to $9.00 and set an "underweight" rating for the company in a research report on Wednesday, February 5th. Four analysts have rated the stock with a sell rating and seven have given a hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $10.78.

Western Union Stock Performance

The stock has a fifty day simple moving average of $10.32 and a two-hundred day simple moving average of $10.59. The company has a debt-to-equity ratio of 3.04, a quick ratio of 1.10 and a current ratio of 1.20. The stock has a market cap of $3.21 billion, a price-to-earnings ratio of 3.56, a P/E/G ratio of 1.32 and a beta of 0.69.

Western Union (NYSE:WU - Get Free Report) last released 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 96.90% and a net margin of 22.19%. The firm had revenue of $983.60 million for the quarter, compared to analysts' expectations of $1.01 billion. During the same quarter in the previous year, the business posted $0.45 earnings per share. The business's revenue for the quarter was down 6.2% on a year-over-year basis. Analysts expect that The Western Union Company will post 1.79 EPS for the current fiscal year.

Western Union Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, March 31st. Stockholders of record on Monday, March 17th were issued a dividend of $0.235 per share. The ex-dividend date of this dividend was Monday, March 17th. This represents a $0.94 annualized dividend and a dividend yield of 9.67%. Western Union's dividend payout ratio (DPR) is presently 35.07%.

Institutional Investors Weigh In On Western Union

A number of hedge funds and other institutional investors have recently bought and sold shares of WU. Parcion Private Wealth LLC bought a new position in Western Union in the 1st quarter valued at approximately $127,000. Victory Capital Management Inc. raised its stake in shares of Western Union by 9.3% during the first quarter. Victory Capital Management Inc. now owns 513,696 shares of the credit services provider's stock valued at $5,435,000 after acquiring an additional 43,580 shares during the last quarter. Dakota Wealth Management lifted its holdings in shares of Western Union by 24.0% during the first quarter. Dakota Wealth Management now owns 63,067 shares of the credit services provider's stock worth $667,000 after purchasing an additional 12,186 shares during the period. SBI Securities Co. Ltd. grew its stake in shares of Western Union by 36.0% in the first quarter. SBI Securities Co. Ltd. now owns 24,655 shares of the credit services provider's stock worth $261,000 after purchasing an additional 6,525 shares during the last quarter. Finally, CWM LLC increased its holdings in Western Union by 186.3% in the first quarter. CWM LLC now owns 148,890 shares of the credit services provider's stock valued at $1,575,000 after purchasing an additional 96,894 shares during the period. 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.