Western Union (NYSE:WU) Sets New 52-Week Low – Time to Sell?

The Western Union Company (NYSE:WU) 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 traded. The stock had previously closed at $10.60.

Wall Street Analyst Weigh In

Several research firms have recently commented on WU. Keefe, Bruyette & Woods reduced their price target on Western Union from $13.00 to $12.00 and set a “market perform” rating for the company in a report on Monday, December 9th. StockNews.com raised Western Union from a “sell” rating to a “hold” rating in a report on Friday, October 25th. UBS Group lowered their price target on shares of Western Union from $13.50 to $12.00 and set a “neutral” rating on the stock in a research note on Thursday, October 24th. Finally, Barclays cut their price target on shares of Western Union from $11.00 to $10.00 and set an “underweight” rating for the company in a report on Friday, December 13th. 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, Western Union presently has an average rating of “Hold” and a consensus price target of $12.63.

Western Union Trading Up 0.5 %

The company has a market cap of $3.54 billion, a price-to-earnings ratio of 5.38, a PEG ratio of 1.51 and a beta of 0.85. The company has a debt-to-equity ratio of 3.96, a current ratio of 1.10 and a quick ratio of 1.10. The business’s 50-day simple moving average is $10.81 and its 200-day simple moving average is $11.59.

Western Union (NYSE:WU) last posted 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. The firm had revenue of $1.04 billion for 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%. Western Union’s revenue was down 5.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.43 EPS. Research analysts predict that The Western Union Company will post 1.77 earnings per share for the current fiscal year.

Western Union Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, December 31st. Investors of record on Monday, December 23rd were paid a $0.235 dividend. This represents a $0.94 annualized dividend and a yield of 8.96%. The ex-dividend date of this dividend was Monday, December 23rd. Western Union’s payout ratio is 48.21%.

Western Union announced that its board has initiated a stock buyback program 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 purchase up to 27.5% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. True Wealth Design LLC purchased a new position in shares of Western Union during the 3rd quarter worth about $25,000. Quarry LP raised its stake in Western Union by 52.9% during the second quarter. Quarry LP now owns 2,588 shares of the credit services provider’s stock worth $32,000 after purchasing an additional 895 shares during the period. Northwestern Mutual Wealth Management Co. boosted its holdings in shares of Western Union by 89.3% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 3,226 shares of the credit services provider’s stock valued at $39,000 after purchasing an additional 1,522 shares during the last quarter. Abich Financial Wealth Management LLC grew its stake in shares of Western Union by 31.1% during the 2nd quarter. Abich Financial Wealth Management LLC now owns 4,316 shares of the credit services provider’s stock valued at $53,000 after buying an additional 1,024 shares during the period. Finally, Tompkins Financial Corp acquired a new stake in shares of Western Union during the 3rd quarter worth $60,000. 91.81% of the stock is currently owned by institutional investors and hedge funds.

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.