Western Union (NYSE:WU) Shares Gap Up After Dividend Announcement

Shares of The Western Union Company (NYSE:WU - Get Free Report) gapped up before the market opened on Monday following a dividend announcement from the company. The stock had previously closed at $10.76, but opened at $11.08. Western Union shares last traded at $11.16, with a volume of 1,040,956 shares changing hands.

The newly announced dividend which will be paid on Tuesday, December 31st. Stockholders of record on Monday, December 23rd will be given a $0.235 dividend. This represents a $0.94 dividend on an annualized basis and a dividend yield of 8.40%. The ex-dividend date of this dividend is Monday, December 23rd. Western Union's dividend payout ratio is presently 48.21%.

Analyst Ratings Changes

WU has been the topic of a number of analyst reports. UBS Group decreased their target price on shares of Western Union from $13.50 to $12.00 and set a "neutral" rating on the stock in a research report on Thursday, October 24th. Keefe, Bruyette & Woods decreased their price objective on Western Union from $13.00 to $12.00 and set a "market perform" rating on the stock in a report on Monday, December 9th. StockNews.com upgraded Western Union from a "sell" rating to a "hold" rating in a research note on Friday, October 25th. JPMorgan Chase & Co. decreased their price target on Western Union from $14.00 to $12.00 and set an "underweight" rating on the stock in a research note on Tuesday, August 20th. Finally, Barclays dropped their price objective 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. Three investment analysts have rated the stock with a sell rating and nine have issued a hold rating to the stock. According to data from MarketBeat.com, Western Union presently has a consensus rating of "Hold" and an average price target of $12.63.

Western Union Price Performance

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 company's fifty day moving average is $11.10 and its 200 day moving average is $11.79. The stock has a market cap of $3.78 billion, a PE ratio of 5.74, 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 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 business had revenue of $1.04 billion for the quarter, compared to the consensus estimate of $1.03 billion. During the same quarter last year, the firm posted $0.43 EPS. The business's revenue for the quarter was down 5.6% compared to the same quarter last year. As a group, sell-side analysts anticipate that The Western Union Company will post 1.77 earnings per share for the current fiscal year.

Western Union declared that its board has authorized a share buyback program on Friday, December 13th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the credit services provider to reacquire up to 27.5% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company's leadership believes its shares are undervalued.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. SG Americas Securities LLC acquired a new stake in Western Union during the 2nd quarter valued at approximately $290,000. Wealth Enhancement Advisory Services LLC grew its position in shares of Western Union by 22.3% during the second quarter. Wealth Enhancement Advisory Services LLC now owns 28,706 shares of the credit services provider's stock worth $351,000 after buying an additional 5,241 shares in the last quarter. Envestnet Portfolio Solutions Inc. increased its stake in shares of Western Union by 4.2% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 27,050 shares of the credit services provider's stock worth $331,000 after buying an additional 1,091 shares during the last quarter. Nisa Investment Advisors LLC raised its holdings in Western Union by 6.6% in the second quarter. Nisa Investment Advisors LLC now owns 81,190 shares of the credit services provider's stock valued at $992,000 after acquiring an additional 5,030 shares in the last quarter. Finally, Dakota Wealth Management boosted its stake in Western Union by 1.8% during the 2nd quarter. Dakota Wealth Management now owns 56,066 shares of the credit services provider's stock valued at $685,000 after acquiring an additional 979 shares during the last quarter. 91.81% of the stock is currently owned by hedge funds and other institutional investors.

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.