The Western Union Company (NYSE:WU) Receives $12.11 Consensus Price Target from Analysts

The Western Union Company (NYSE:WU) has been given a consensus recommendation of “Reduce” by the ten analysts that are presently covering the stock, MarketBeat.com reports. Three investment analysts have rated the stock with a sell recommendation and seven have assigned a hold recommendation to the company. The average twelve-month target price among analysts that have issued a report on the stock in the last year is $12.11.

Several research firms have recently weighed in on WU. Barclays lowered their price objective on Western Union from $11.00 to $10.00 and set an “underweight” rating on the stock in a research note on Friday, December 13th. JMP Securities reiterated a “market perform” rating on shares of Western Union in a research report on Thursday, February 6th. Morgan Stanley cut their price objective on Western Union from $10.00 to $9.00 and set an “underweight” rating for the company in a report on Wednesday, February 5th. Susquehanna lowered their target price on shares of Western Union from $13.00 to $12.00 and set a “neutral” rating on the stock in a report on Wednesday, February 5th. Finally, Keefe, Bruyette & Woods cut their price target on shares of Western Union from $13.00 to $12.00 and set a “market perform” rating for the company in a report on Monday, December 9th.

Western Union Stock Down 1.4 %

Shares of WU stock opened at $10.48 on Tuesday. The stock has a market cap of $3.54 billion, a P/E ratio of 3.84, a price-to-earnings-growth ratio of 1.32 and a beta of 0.79. The company has a debt-to-equity ratio of 3.04, a current ratio of 1.20 and a quick ratio of 1.10. The stock has a fifty day moving average price of $10.63 and a 200 day moving average price of $10.94. Western Union has a one year low of $10.04 and a one year high of $13.95.

Western Union (NYSE:WU) last released its quarterly earnings data 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%. Analysts predict that Western Union will post 1.79 earnings per share for the current year.

Western Union declared that its Board of Directors has initiated a share buyback program on Friday, December 13th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the credit services provider to repurchase up to 27.5% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s management believes its shares are undervalued.

Western Union Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, March 31st. Shareholders of record on Monday, March 17th will be given a $0.235 dividend. This represents a $0.94 annualized dividend and a yield of 8.97%. The ex-dividend date of this dividend is Monday, March 17th. Western Union’s payout ratio is presently 34.43%.

Institutional Trading of Western Union

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. True Wealth Design LLC bought a new stake in Western Union during the 3rd quarter worth about $25,000. R Squared Ltd bought a new stake in shares of Western Union during the fourth quarter worth approximately $25,000. Independence Bank of Kentucky acquired a new position in Western Union in the fourth quarter valued at approximately $28,000. McIlrath & Eck LLC boosted its stake in Western Union by 1,487.6% in the fourth quarter. McIlrath & Eck LLC now owns 3,080 shares of the credit services provider’s stock valued at $33,000 after acquiring an additional 2,886 shares during the last quarter. Finally, Huntington National Bank grew its holdings in Western Union by 662.7% during the 4th quarter. Huntington National Bank now owns 3,722 shares of the credit services provider’s stock worth $39,000 after acquiring an additional 3,234 shares during the period. Institutional investors and hedge funds own 91.81% of the company’s stock.

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.