Western Union (NYSE:WU) Hits New 52-Week Low - What's Next?

The Western Union Company (NYSE:WU - Get Free Report) reached a new 52-week low during mid-day trading on Wednesday . The stock traded as low as $10.26 and last traded at $10.30, with a volume of 462717 shares traded. The stock had previously closed at $10.43.

Analyst Ratings Changes

Several equities research analysts have issued reports on the stock. UBS Group cut their price objective on shares of Western Union from $13.50 to $12.00 and set a "neutral" rating for the company in a research report on Thursday, October 24th. Barclays dropped their price target on Western Union from $11.00 to $10.00 and set an "underweight" rating for the company in a report on Friday, December 13th. Keefe, Bruyette & Woods lowered their price objective on Western Union from $13.00 to $12.00 and set a "market perform" rating on the stock in a research report on Monday, December 9th. Finally, StockNews.com raised Western Union from a "sell" rating to a "hold" rating in a report on Friday, October 25th. Two research analysts have rated the stock with a sell rating and nine have issued a hold rating to the stock. Based on data from MarketBeat, Western Union has a consensus rating of "Hold" and an average price target of $12.63.

Western Union Stock Up 0.1 %

The stock's 50-day simple moving average is $10.78 and its 200 day simple moving average is $11.55. 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 firm has a market cap of $3.53 billion, a P/E ratio of 5.35, a PEG ratio of 1.51 and a beta of 0.85.

Western Union (NYSE:WU - Get Free Report) last released its earnings results on Wednesday, October 23rd. The credit services provider reported $0.46 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.44 by $0.02. Western Union had a net margin of 16.07% and a return on equity of 120.39%. The company had revenue of $1.04 billion for the quarter, compared to the consensus estimate of $1.03 billion. During the same quarter in the previous year, the company earned $0.43 EPS. Western Union's quarterly revenue was down 5.6% compared to the same quarter last year. As a group, research analysts forecast that The Western Union Company will post 1.77 EPS for the current fiscal year.

Western Union Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, December 31st. Stockholders of record on Monday, December 23rd were issued a dividend of $0.235 per share. This represents a $0.94 dividend on an annualized basis and a dividend yield of 9.00%. The ex-dividend date of this dividend was Monday, December 23rd. Western Union's dividend payout ratio is currently 48.21%.

Western Union announced that its board has approved a share repurchase 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 repurchase up to 27.5% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's management believes its stock is undervalued.

Hedge Funds Weigh In On Western Union

Several institutional investors have recently modified their holdings of WU. Quarry LP boosted its stake in Western Union by 52.9% in the second quarter. Quarry LP now owns 2,588 shares of the credit services provider's stock valued at $32,000 after acquiring an additional 895 shares during the last quarter. National Bank of Canada FI grew its holdings in Western Union by 1.1% during the second quarter. National Bank of Canada FI now owns 80,813 shares of the credit services provider's stock valued at $979,000 after purchasing an additional 896 shares during the period. Abich Financial Wealth Management LLC increased its position in Western Union by 31.1% in the second quarter. Abich Financial Wealth Management LLC now owns 4,316 shares of the credit services provider's stock worth $53,000 after buying an additional 1,024 shares during the last quarter. State of Alaska Department of Revenue raised its stake in shares of Western Union by 0.5% in the third quarter. State of Alaska Department of Revenue now owns 238,876 shares of the credit services provider's stock valued at $2,849,000 after buying an additional 1,205 shares during the period. Finally, Tidal Investments LLC lifted 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 buying an additional 1,230 shares during the last quarter. 91.81% of the stock is owned by institutional investors.

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.