The Western Union Company (NYSE:WU) Given Consensus Rating of "Reduce" by Brokerages

Shares of The Western Union Company (NYSE:WU - Get Free Report) have received a consensus recommendation of "Reduce" from the eleven analysts that are covering the stock, MarketBeat.com reports. Three investment analysts have rated the stock with a sell recommendation and eight have given a hold recommendation to the company. The average 1-year price objective among analysts that have issued ratings on the stock in the last year is $12.11.

A number of research firms have issued reports on WU. Keefe, Bruyette & Woods reduced their price target on shares of Western Union from $13.00 to $12.00 and set a "market perform" rating for the company in a research report on Monday, December 9th. Susquehanna reduced their target price on shares of Western Union from $13.00 to $12.00 and set a "neutral" rating for the company in a report on Wednesday, February 5th. JMP Securities reaffirmed a "market perform" rating on shares of Western Union in a research report on Thursday, February 6th. Barclays reduced their price objective on Western Union from $11.00 to $10.00 and set an "underweight" rating for the company in a research note on Friday, December 13th. Finally, Morgan Stanley lowered their target price on Western Union from $10.00 to $9.00 and set an "underweight" rating on the stock in a research note on Wednesday, February 5th.

Western Union Stock Performance

NYSE:WU traded down $0.11 during trading hours on Friday, hitting $10.73. 2,656,798 shares of the company were exchanged, compared to its average volume of 5,572,563. The company has a debt-to-equity ratio of 3.04, a current ratio of 1.20 and a quick ratio of 1.10. Western Union has a 52-week low of $10.04 and a 52-week high of $14.19. The stock has a market capitalization of $3.62 billion, a price-to-earnings ratio of 3.94, a PEG ratio of 1.32 and a beta of 0.85. The company's 50 day moving average price is $10.52 and its 200-day moving average price is $11.10.

Remove Ads

Western Union (NYSE:WU - Get Free Report) last issued its quarterly earnings results on Tuesday, February 4th. The credit services provider reported $0.40 EPS for the quarter, missing analysts' consensus estimates of $0.42 by ($0.02). Western Union had a return on equity of 96.90% and a net margin of 22.19%. As a group, research analysts forecast that Western Union will post 1.79 earnings per share for the current year.

Western Union announced that its Board of Directors has approved a share repurchase plan on Friday, December 13th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the credit services provider to repurchase up to 27.5% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's board believes its shares are undervalued.

Western Union Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, March 31st. Stockholders of record on Monday, March 17th will be issued a $0.235 dividend. The ex-dividend date is Monday, March 17th. This represents a $0.94 dividend on an annualized basis and a dividend yield of 8.76%. Western Union's payout ratio is 34.43%.

Institutional Investors Weigh In On Western Union

Hedge funds have recently made changes to their positions in the business. Price T Rowe Associates Inc. MD increased its holdings in shares of Western Union by 18.0% in the fourth 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. increased its stake in Western Union by 202.9% in the 4th quarter. Invesco Ltd. now owns 5,661,732 shares of the credit services provider's stock valued at $60,014,000 after buying an additional 3,792,683 shares during the period. AQR Capital Management LLC raised its position in 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 worth $118,788,000 after buying an additional 3,146,395 shares during the last quarter. Brickwood Asset Management LLP acquired a new stake in shares of Western Union in the 4th quarter worth $31,177,000. Finally, Schroder Investment Management Group boosted its holdings in shares of Western Union by 32.1% in the fourth quarter. Schroder Investment Management Group now owns 9,021,308 shares of the credit services provider's stock valued at $95,626,000 after acquiring an additional 2,194,403 shares in the last quarter. Institutional investors and hedge funds own 91.81% of the company's stock.

Western Union Company Profile

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.