Western Union (NYSE:WU) Hits New 1-Year Low on Disappointing Earnings

The Western Union Company (NYSE:WU - Get Free Report) hit a new 52-week low during mid-day trading on Tuesday following a dissappointing earnings announcement. The stock traded as low as $10.04 and last traded at $10.28, with a volume of 7174924 shares changing hands. The stock had previously closed at $10.32.

The credit services provider reported $0.40 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.42 by ($0.02). Western Union had a net margin of 16.07% and a return on equity of 120.39%.

Western Union Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, March 31st. Investors of record on Monday, March 17th will be issued a dividend of $0.235 per share. This represents a $0.94 dividend on an annualized basis and a dividend yield of 8.87%. The ex-dividend date is Monday, March 17th. Western Union's payout ratio is presently 48.21%.

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

Analysts Set New Price Targets

Several equities analysts have commented on WU shares. Barclays decreased their price objective 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. Morgan Stanley lowered their price target on shares of Western Union from $10.00 to $9.00 and set an "underweight" rating on the stock in a report on Wednesday. UBS Group reduced their price objective on Western Union from $13.50 to $12.00 and set a "neutral" rating for the company in a report on Thursday, October 24th. StockNews.com upgraded Western Union from a "sell" rating to a "hold" rating in a research note on Friday, October 25th. Finally, Susquehanna reduced their price target on Western Union from $13.00 to $12.00 and set a "neutral" rating for the company in a research note on Wednesday. Three research analysts have rated the stock with a sell rating and eleven have given a hold rating to the company's stock. Based on data from MarketBeat.com, Western Union currently has an average rating of "Hold" and a consensus target price of $12.20.

Institutional Investors Weigh In On Western Union

Large investors have recently bought and sold shares of the company. Amundi lifted its stake in Western Union by 190.9% during the fourth quarter. Amundi now owns 334,911 shares of the credit services provider's stock worth $3,496,000 after purchasing an additional 219,798 shares during the last quarter. Inceptionr LLC acquired a new position in shares of Western Union during the 4th quarter worth $328,000. Raymond James Financial Inc. bought a new stake in shares of Western Union during the 4th quarter worth $705,000. Aigen Investment Management LP acquired a new stake in Western Union in the fourth quarter valued at about $186,000. Finally, Charles Schwab Investment Management Inc. grew its position in Western Union by 4.6% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 12,489,079 shares of the credit services provider's stock valued at $132,384,000 after acquiring an additional 549,931 shares during the last quarter. 91.81% of the stock is currently owned by institutional investors and hedge funds.

Western Union Stock Performance

The company has a 50 day simple moving average of $10.61 and a 200 day simple moving average of $11.27. The company has a quick ratio of 1.10, a current ratio of 1.10 and a debt-to-equity ratio of 3.96. The stock has a market cap of $3.58 billion, a price-to-earnings ratio of 5.43, a P/E/G ratio of 1.40 and a beta of 0.85.

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.