Western Union (NYSE:WU) Stock Price Down 5% – Here’s What Happened
by Tristan Rich · The Markets DailyThe Western Union Company (NYSE:WU – Get Free Report) fell 5% during mid-day trading on Wednesday . The company traded as low as $6.56 and last traded at $6.5070. 560,142 shares traded hands during trading, a decline of 94% from the average session volume of 8,965,572 shares. The stock had previously closed at $6.85.
Analyst Upgrades and Downgrades
WU has been the subject of a number of recent research reports. Morgan Stanley reduced their price objective on Western Union from $7.00 to $6.00 and set an “underweight” rating for the company in a research note on Friday, July 31st. Weiss Ratings raised Western Union from a “sell (d+)” rating to a “hold (c-)” rating in a report on Monday, August 3rd. JPMorgan Chase & Co. reduced their price target on Western Union from $9.00 to $8.00 and set an “underweight” rating for the company in a research report on Monday, July 13th. New Street Research reissued a “reduce” rating on shares of Western Union in a report on Thursday, August 13th. Finally, Cantor Fitzgerald lowered their price objective on Western Union from $8.00 to $7.00 and set an “underweight” rating on the stock in a research report on Monday, August 3rd. Six research analysts have rated the stock with a Hold rating and eight have given a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Strong Sell” and an average target price of $7.55.
Western Union Price Performance
The company has a quick ratio of 1.12, a current ratio of 1.12 and a debt-to-equity ratio of 2.95. The firm has a market capitalization of $2.03 billion, a PE ratio of 5.30 and a beta of 0.50. The stock has a 50-day moving average price of $7.48 and a 200 day moving average price of $8.20.
Western Union (NYSE:WU – Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The credit services provider reported $0.31 earnings per share for the quarter, missing the consensus estimate of $0.42 by ($0.11). Western Union had a return on equity of 50.89% and a net margin of 9.79%.The company had revenue of $1.01 billion for the quarter, compared to analyst estimates of $1.02 billion. During the same quarter last year, the company earned $0.37 EPS. The firm’s revenue for the quarter was down 1.3% on a year-over-year basis. Western Union has set its FY 2026 guidance at 1.250-1.350 EPS. Equities analysts forecast that The Western Union Company will post 1.29 EPS for the current fiscal year.
Western Union Dividend Announcement
The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 16th will be paid a $0.235 dividend. The ex-dividend date of this dividend is Wednesday, September 16th. This represents a $0.94 dividend on an annualized basis and a dividend yield of 14.4%. Western Union’s dividend payout ratio (DPR) is 76.42%.
Hedge Funds Weigh In On Western Union
Hedge funds have recently modified their holdings of the business. Bank of America Corp DE raised its position in Western Union by 43.5% in the 1st quarter. Bank of America Corp DE now owns 3,838,382 shares of the credit services provider’s stock valued at $33,509,000 after purchasing an additional 1,163,577 shares in the last quarter. Bessemer Group Inc. increased its stake in shares of Western Union by 52.6% during the first quarter. Bessemer Group Inc. now owns 520,779 shares of the credit services provider’s stock worth $4,547,000 after buying an additional 179,423 shares during the period. BlackRock Inc. purchased a new stake in shares of Western Union during the second quarter worth approximately $241,806,000. Connor Clark & Lunn Investment Management Ltd. acquired a new stake in Western Union in the second quarter valued at approximately $11,248,000. Finally, Royal Bank of Canada raised its holdings in Western Union by 28.5% in the first quarter. Royal Bank of Canada now owns 1,922,728 shares of the credit services provider’s stock valued at $16,785,000 after acquiring an additional 426,939 shares in the last quarter. 91.81% of the stock is currently owned by hedge funds and other institutional investors.
About Western Union
Western Union Company (NYSE:WU) is a global provider of money movement and payment services. The company enables consumers and businesses to send and receive money across borders and within individual markets through digital platforms, mobile applications and a network of retail agent locations.
Its services include consumer money transfers, international remittances, bill payments and money orders. Customers can typically initiate transfers online, through the Western Union app or at participating retail locations, with recipients able to collect funds in cash or receive them through eligible bank accounts, digital wallets or other payment methods, depending on the destination market.
Western Union traces its origins to 1851, when it was established as a telegraph company in the United States.