Western Union (NYSE:WU) Stock Price Up 6.4% - What's Next?

Key Points

• Western Union shares rose 6.4% on Friday, trading above recent levels on heavier-than-normal volume, with about 11.0 million shares changing hands.
• Several analysts turned more cautious on the stock, including rating cuts and lower price targets from Weiss Ratings, Citigroup, JPMorgan, and Barclays. The consensus view now leans “Reduce” with an average target price of $8.45.
• The company’s latest earnings missed expectations, with Q1 EPS of $0.25 versus $0.40 expected and revenue of $963.5 million versus $1.06 billion forecast. Western Union also maintains a high dividend yield of about 10.5%, but its payout ratio is elevated at 69.1%.

The Western Union Company (NYSE:WU - Get Free Report) shares rose 6.4% during trading on Friday . The stock traded as high as $8.85 and last traded at $8.8760. Approximately 11,042,208 shares changed hands during trading, an increase of 29% from the average session volume of 8,531,990 shares. The stock had previously closed at $8.34.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on the company. Weiss Ratings cut Western Union from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, June 5th. Citigroup lowered their price objective on Western Union from $9.50 to $8.50 and set a "neutral" rating on the stock in a research note on Friday. JPMorgan Chase & Co. reduced their target price on Western Union from $9.00 to $8.00 and set an "underweight" rating on the stock in a report on Monday. Finally, Barclays started coverage on Western Union in a research report on Tuesday, July 7th. They issued an "underweight" rating and a $7.00 price target on the stock. Six research analysts have rated the stock with a Hold rating and six have assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Reduce" and an average target price of $8.45.

Western Union Stock Performance

The company has a 50 day moving average price of $7.89 and a 200-day moving average price of $8.84. 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 company has a market cap of $2.79 billion, a P/E ratio of 6.56, a price-to-earnings-growth ratio of 1.03 and a beta of 0.46.

Western Union (NYSE:WU - Get Free Report) last announced its quarterly earnings data on Friday, April 24th. The credit services provider reported $0.25 earnings per share for the quarter, missing the consensus estimate of $0.40 by ($0.15). Western Union had a return on equity of 55.94% and a net margin of 10.88%.The business had revenue of $963.50 million for the quarter, compared to the consensus estimate of $1.06 billion. During the same quarter in the prior year, the company earned $0.41 earnings per share. Western Union's quarterly revenue was down .1% compared to the same quarter last year. Western Union has set its FY 2026 guidance at 1.750-1.850 EPS. On average, equities analysts expect that The Western Union Company will post 1.75 earnings per share for the current fiscal year.

Western Union Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 16th were paid a $0.235 dividend. This represents a $0.94 dividend on an annualized basis and a dividend yield of 10.5%. The ex-dividend date was Tuesday, June 16th. Western Union's dividend payout ratio (DPR) is presently 69.12%.

Insider Activity at Western Union

In related news, insider Giovanni Angelini sold 6,000 shares of the company's stock in a transaction that occurred on Tuesday, April 28th. The shares were sold at an average price of $9.47, for a total transaction of $56,820.00. Following the completion of the transaction, the insider directly owned 311,292 shares in the company, valued at $2,947,935.24. This represents a 1.89% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 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 stock in a transaction that occurred 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 directly owned 234,689 shares of the company's stock, valued at approximately $2,166,179.47. The trade was a 7.83% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 3.29% of the company's stock.

Institutional Investors Weigh In On Western Union

Several hedge funds have recently modified their holdings of the company. Accel Wealth Management acquired a new position in Western Union in the 2nd quarter worth about $143,000. Ramsey Quantitative Systems bought a new stake in shares of Western Union during the second quarter worth about $138,000. GAMMA Investing LLC increased its stake in shares of Western Union by 27.9% in the second quarter. GAMMA Investing LLC now owns 7,931 shares of the credit services provider's stock valued at $61,000 after buying an additional 1,729 shares during the period. Parallel Advisors LLC raised its holdings in Western Union by 197.3% in the 1st quarter. Parallel Advisors LLC now owns 6,516 shares of the credit services provider's stock valued at $57,000 after buying an additional 4,324 shares during the last quarter. Finally, Ritter Alpha LP acquired a new stake in Western Union during the 1st quarter worth approximately $248,000. 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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