Western Union (NYSE:WU) Hits New 1-Year Low - Time to Sell?

The Western Union Company (NYSE:WU - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Thursday . The stock traded as low as $10.39 and last traded at $10.39, with a volume of 2625796 shares. The stock had previously closed at $10.60.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the company. Keefe, Bruyette & Woods decreased their price target on Western Union from $13.00 to $12.00 and set a "market perform" rating for the company in a research note on Monday, December 9th. Barclays lowered their target price on shares of Western Union from $11.00 to $10.00 and set an "underweight" rating for the company in a research note on Friday, December 13th. StockNews.com raised shares of Western Union from a "sell" rating to a "hold" rating in a research note on Friday, October 25th. Finally, UBS Group lowered 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. Three equities research analysts have rated the stock with a sell rating and nine have issued a hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $12.63.

Western Union Stock Down 1.5 %

The company has a 50-day moving average of $10.82 and a 200-day moving average of $11.60. The company has a current ratio of 1.10, a quick ratio of 1.10 and a debt-to-equity ratio of 3.96. The company has a market capitalization of $3.53 billion, a price-to-earnings ratio of 5.35, a price-to-earnings-growth ratio of 1.51 and a beta of 0.86.

Western Union (NYSE:WU - Get Free Report) last issued its earnings results on Wednesday, October 23rd. The credit services provider reported $0.46 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.44 by $0.02. The company had revenue of $1.04 billion during the quarter, compared to analyst estimates of $1.03 billion. Western Union had a return on equity of 120.39% and a net margin of 16.07%. The firm's quarterly revenue was down 5.6% on a year-over-year basis. During the same quarter last year, the business posted $0.43 EPS. On average, equities analysts predict that The Western Union Company will post 1.77 earnings per share for the current fiscal year.

Western Union Announces Dividend

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

Western Union announced that its board has approved a stock buyback plan on Friday, December 13th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the credit services provider to buy up to 27.5% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's board believes its shares are undervalued.

Hedge Funds Weigh In On Western Union

A number of hedge funds have recently bought and sold shares of WU. True Wealth Design LLC purchased a new stake in shares of Western Union during the third quarter worth about $25,000. Quarry LP boosted its holdings in Western Union by 52.9% in the 2nd quarter. Quarry LP now owns 2,588 shares of the credit services provider's stock worth $32,000 after buying an additional 895 shares during the last quarter. Northwestern Mutual Wealth Management Co. increased its stake in Western Union by 89.3% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 3,226 shares of the credit services provider's stock worth $39,000 after buying an additional 1,522 shares in the last quarter. Abich Financial Wealth Management LLC raised its holdings in shares of Western Union by 31.1% during the second quarter. Abich Financial Wealth Management LLC now owns 4,316 shares of the credit services provider's stock valued at $53,000 after acquiring an additional 1,024 shares during the last quarter. Finally, Tompkins Financial Corp purchased a new position in shares of Western Union in the third quarter valued at approximately $60,000. Hedge funds and other institutional investors own 91.81% of the company's stock.

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.