Western Union (NYSE:WU) Shares Up 6.4% – Still a Buy?

Shares of The Western Union Company (NYSE:WU) rose 6.4% during trading on Friday . The stock traded as high as $8.85 and last traded at $8.8760. Approximately 11,042,208 shares changed hands during trading, an increase of 29% from the average daily volume of 8,531,990 shares. The stock had previously closed at $8.34.

Wall Street Analyst Weigh In

WU has been the topic of a number of recent analyst reports. JPMorgan Chase & Co. cut their price target on shares of Western Union from $9.00 to $8.00 and set an “underweight” rating on the stock in a research note on Monday, July 13th. Weiss Ratings downgraded Western Union from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, June 5th. Barclays began coverage on Western Union in a research report on Tuesday, July 7th. They issued an “underweight” rating and a $7.00 target price on the stock. Finally, Citigroup lowered their price target on Western Union from $9.50 to $8.50 and set a “neutral” rating for the company in a research report on Friday. Six equities research analysts have rated the stock with a Hold rating and six have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Western Union currently has a consensus rating of “Reduce” and an average target price of $8.45.

Western Union Trading Up 6.5%

The company has a debt-to-equity ratio of 2.88, a current ratio of 1.11 and a quick ratio of 1.11. The business’s 50-day simple moving average is $7.88 and its two-hundred day simple moving average is $8.84. The stock has a market capitalization of $2.78 billion, a price-to-earnings ratio of 6.53, a PEG ratio of 1.14 and a beta of 0.46.

Western Union (NYSE:WU) last issued its earnings results on Friday, April 24th. The credit services provider reported $0.25 EPS for the quarter, missing analysts’ consensus estimates of $0.40 by ($0.15). Western Union had a net margin of 10.88% and a return on equity of 55.94%. The business had revenue of $963.50 million during the quarter, compared to analysts’ expectations of $1.06 billion. During the same period in the prior year, the business posted $0.41 EPS. The business’s revenue was down .1% on a year-over-year basis. Western Union has set its FY 2026 guidance at 1.750-1.850 EPS. On average, research analysts anticipate that The Western Union Company will post 1.75 earnings per share for the current fiscal year.

Western Union Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 16th were paid a $0.235 dividend. The ex-dividend date was Tuesday, June 16th. This represents a $0.94 dividend on an annualized basis and a dividend yield of 10.6%. Western Union’s dividend payout ratio (DPR) is 69.12%.

Insider Activity at Western Union

In other news, insider Benjamin Carlton Adams sold 19,924 shares of Western Union stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $9.23, for a total transaction of $183,898.52. Following the sale, the insider owned 234,689 shares in the company, valued at $2,166,179.47. This trade represents a 7.83% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Giovanni Angelini sold 6,000 shares of the business’s stock in a transaction on Tuesday, April 28th. The stock was sold at an average price of $9.47, for a total transaction of $56,820.00. Following the transaction, the insider directly owned 311,292 shares in the company, valued at approximately $2,947,935.24. The trade was a 1.89% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 3.29% of the company’s stock.

Hedge Funds Weigh In On Western Union

A number of institutional investors have recently added to or reduced their stakes in WU. Wilmington Savings Fund Society FSB grew its stake in shares of Western Union by 606.7% during the third quarter. Wilmington Savings Fund Society FSB now owns 3,265 shares of the credit services provider’s stock valued at $26,000 after acquiring an additional 2,803 shares in the last quarter. Salomon & Ludwin LLC lifted its stake in shares of Western Union by 1,546.5% in the fourth quarter. Salomon & Ludwin LLC now owns 3,326 shares of the credit services provider’s stock worth $31,000 after acquiring an additional 3,124 shares in the last quarter. Fifth Third Bancorp lifted its stake in shares of Western Union by 67.0% in the fourth quarter. Fifth Third Bancorp now owns 3,331 shares of the credit services provider’s stock worth $31,000 after acquiring an additional 1,336 shares in the last quarter. Caitong International Asset Management Co. Ltd boosted its holdings in Western Union by 179.6% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 3,341 shares of the credit services provider’s stock valued at $31,000 after purchasing an additional 2,146 shares during the last quarter. Finally, Ascentis Independent Advisors purchased a new position in Western Union in the first quarter valued at about $30,000. Institutional investors and hedge funds own 91.81% of the company’s stock.

About Western Union

Western Union Company (NYSE: WU) is a global leader in cross-border, cross-currency money movement and payments. The company enables individuals and businesses to send and receive money through a variety of channels, including its vast agent network, online platforms, and mobile applications. Core services include person-to-person money transfers, business-to-business cross-border payments, bill payment services and prepaid card programs.

Through its digital offerings, Western Union provides customers with the ability to initiate transfers via its website and mobile app, as well as track transactions in real time.