Western Union (NYSE:WU) Reaches New 1-Year Low - What's Next?

The Western Union Company (NYSE:WU - Get Free Report)'s stock price reached a new 52-week low on Friday . The stock traded as low as $9.92 and last traded at $10.17, with a volume of 3474912 shares changing hands. The stock had previously closed at $10.50.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on WU. Barclays cut their price target on shares of Western Union from $11.00 to $10.00 and set an "underweight" rating on the stock in a report on Friday, December 13th. Royal Bank of Canada reiterated a "sector perform" rating and set a $14.00 target price on shares of Western Union in a research report on Thursday, April 3rd. JMP Securities reaffirmed a "market perform" rating on shares of Western Union in a research note on Thursday, February 6th. Morgan Stanley dropped their target price on shares of Western Union from $10.00 to $9.00 and set an "underweight" rating on the stock in a research note on Wednesday, February 5th. Finally, Susquehanna reduced their target price on shares of Western Union from $13.00 to $12.00 and set a "neutral" rating on the stock in a research report on Wednesday, February 5th. Three equities research analysts have rated the stock with a sell rating and eight have given a hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $12.11.

Western Union Stock Performance

The stock has a market capitalization of $3.35 billion, a price-to-earnings ratio of 3.66, a P/E/G ratio of 1.32 and a beta of 0.69. The company has a current ratio of 1.20, a quick ratio of 1.10 and a debt-to-equity ratio of 3.04. The firm has a 50-day moving average of $10.58 and a 200-day moving average of $10.84.

Western Union (NYSE:WU - Get Free Report) last released its 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, sell-side analysts predict that The Western Union Company will post 1.79 earnings per share for the current year.

Western Union Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, March 31st. Shareholders of record on Monday, March 17th were issued a $0.235 dividend. This represents a $0.94 annualized dividend and a yield of 9.40%. The ex-dividend date of this dividend was Monday, March 17th. Western Union's payout ratio is 34.43%.

Western Union declared that its Board of Directors has initiated a stock buyback plan on Friday, December 13th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the credit services provider to buy up to 27.5% of its shares through open market purchases. Shares repurchase plans are often an indication that the company's leadership believes its stock is undervalued.

Institutional Trading of Western Union

Several hedge funds and other institutional investors have recently bought and sold shares of WU. Captrust Financial Advisors grew its stake in shares of Western Union by 4.6% during the 4th quarter. Captrust Financial Advisors now owns 22,298 shares of the credit services provider's stock worth $236,000 after purchasing an additional 982 shares during the period. Pacer Advisors Inc. boosted its stake in shares of Western Union by 2.2% during the 4th quarter. Pacer Advisors Inc. now owns 50,387 shares of the credit services provider's stock worth $534,000 after acquiring an additional 1,072 shares in the last quarter. Tidal Investments LLC grew its position in shares of Western Union by 1.4% during the 3rd quarter. Tidal Investments LLC now owns 88,410 shares of the credit services provider's stock valued at $1,055,000 after acquiring an additional 1,230 shares during the period. Focus Partners Wealth raised its holdings in Western Union by 11.7% in the 4th quarter. Focus Partners Wealth now owns 14,233 shares of the credit services provider's stock worth $151,000 after purchasing an additional 1,493 shares during the period. Finally, Exchange Traded Concepts LLC grew its holdings in Western Union by 2.6% in the fourth quarter. Exchange Traded Concepts LLC now owns 61,606 shares of the credit services provider's stock valued at $653,000 after purchasing an additional 1,560 shares during the period. 91.81% of the stock is owned by institutional investors and hedge funds.

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.