Zacks Research Downgrades Western Union (NYSE:WU) to Strong Sell

Key Points

• Zacks Research downgraded Western Union to “strong sell” from “hold,” joining a consensus view of “strong sell” among analysts. The average price target is $7.55, with several firms recently cutting targets to between $6 and $8.
• Western Union opened at $7.23, near its 12-month low of $6.27, after reporting quarterly EPS of $0.31—well below the $0.42 consensus estimate—and a 1.3% year-over-year revenue decline.
• Despite the weak analyst sentiment, institutional investors own 91.81% of the company’s stock, with several major hedge funds and investment firms recently increasing their positions.

Western Union (NYSE:WU - Get Free Report) was downgraded by analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued to investors on Tuesday,Zacks.com reports.

Several other research firms have also commented on WU. Monness Crespi & Hardt reaffirmed a "sell" rating and set a $6.00 price target on shares of Western Union in a research report on Friday, July 31st. Susquehanna decreased their price target on Western Union from $10.00 to $8.00 and set a "neutral" rating on the stock in a research note on Friday, July 31st. Cantor Fitzgerald reduced their price objective on shares of Western Union from $8.00 to $7.00 and set an "underweight" rating on the stock in a report on Monday. Citigroup dropped their price target on shares of Western Union from $8.50 to $7.00 and set a "neutral" rating for the company in a research report on Monday. Finally, Barclays decreased their price objective on shares of Western Union from $7.00 to $6.00 and set an "underweight" rating on the stock in a report on Friday, July 31st. Six investment analysts have rated the stock with a Hold rating and seven have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Strong Sell" and an average price target of $7.55.

Western Union Stock Down 1.0%

WU stock opened at $7.23 on Tuesday. The company has a current ratio of 1.12, a quick ratio of 1.12 and a debt-to-equity ratio of 2.95. The firm has a 50-day moving average of $7.72 and a two-hundred day moving average of $8.69. Western Union has a 12 month low of $6.27 and a 12 month high of $10.35. The company has a market cap of $2.26 billion, a price-to-earnings ratio of 5.88, a PEG ratio of 1.26 and a beta of 0.47.

Western Union (NYSE:WU - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The credit services provider reported $0.31 EPS for the quarter, missing the consensus estimate of $0.42 by ($0.11). Western Union had a net margin of 9.79% and a return on equity of 50.89%. The company had revenue of $1.01 billion during the quarter, compared to analyst estimates of $1.02 billion. During the same period in the prior year, the business posted $0.37 EPS. Western Union's revenue for the quarter was down 1.3% compared to the same quarter last year. Western Union has set its FY 2026 guidance at 1.250-1.350 EPS. As a group, analysts forecast that Western Union will post 1.29 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Western Union

Hedge funds have recently bought and sold shares of the stock. Goldman Sachs Group Inc. increased its holdings in Western Union by 401.4% in the fourth quarter. Goldman Sachs Group Inc. now owns 7,604,026 shares of the credit services provider's stock valued at $70,793,000 after buying an additional 6,087,613 shares during the last quarter. Qube Research & Technologies Ltd boosted its position in shares of Western Union by 821.1% during the 2nd quarter. Qube Research & Technologies Ltd now owns 4,170,343 shares of the credit services provider's stock worth $35,114,000 after acquiring an additional 3,717,589 shares in the last quarter. Marshall Wace LLP increased its holdings in shares of Western Union by 3,370.2% in the 4th quarter. Marshall Wace LLP now owns 3,740,849 shares of the credit services provider's stock valued at $34,827,000 after acquiring an additional 3,633,049 shares during the last quarter. UBS Group AG raised its position in shares of Western Union by 128.4% during the 3rd quarter. UBS Group AG now owns 4,900,542 shares of the credit services provider's stock worth $39,155,000 after acquiring an additional 2,754,827 shares in the last quarter. Finally, Capital Research Global Investors boosted its holdings in Western Union by 35.3% in the fourth quarter. Capital Research Global Investors now owns 10,407,960 shares of the credit services provider's stock valued at $96,898,000 after purchasing an additional 2,716,385 shares in the last quarter. Institutional investors and hedge funds own 91.81% of the company's stock.

About Western Union

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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