Western Union (NYSE:WU) Trading Down 5% – Time to Sell?

The Western Union Company (NYSE:WU) fell 5% 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.

Analysts Set New Price Targets

A number of analysts recently weighed in on WU shares. Wolfe Research restated an “underperform” rating and issued a $8.00 target price on shares of Western Union in a research report on Friday, July 31st. Citigroup decreased their price target on shares of Western Union from $8.50 to $7.00 and set a “neutral” rating on the stock in a research note on Monday, August 3rd. Barclays lowered their price objective on shares of Western Union from $7.00 to $6.00 and set an “underweight” rating for the company in a report on Friday, July 31st. Weiss Ratings raised shares of Western Union from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Monday, August 3rd. Finally, Zacks Research lowered shares of Western Union from a “hold” rating to a “strong sell” rating in a report on Tuesday, August 4th. Six analysts have rated the stock with a Hold rating and eight have assigned a Sell rating to the company. According to data from MarketBeat.com, Western Union currently has an average rating of “Strong Sell” and an average target price of $7.55.

Western Union Price Performance

The firm has a fifty day moving average of $7.43 and a two-hundred day moving average of $8.16. The company has a current ratio of 1.12, a quick ratio of 1.12 and a debt-to-equity ratio of 2.95. The company has a market capitalization of $2.04 billion, a PE ratio of 5.31 and a beta of 0.50.

Western Union (NYSE:WU) last announced its quarterly earnings results on Thursday, July 30th. The credit services provider reported $0.31 EPS for the quarter, missing analysts’ consensus estimates of $0.42 by ($0.11). The company had revenue of $1.01 billion during the quarter, compared to analysts’ expectations of $1.02 billion. Western Union had a return on equity of 50.89% and a net margin of 9.79%.Western Union’s revenue for the quarter was down 1.3% on a year-over-year basis. During the same period last year, the firm earned $0.37 earnings per share. Western Union has set its FY 2026 guidance at 1.250-1.350 EPS. Research analysts anticipate that The Western Union Company will post 1.29 EPS for the current fiscal year.

Western Union Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 16th will be issued a $0.235 dividend. This represents a $0.94 dividend on an annualized basis and a yield of 14.4%. The ex-dividend date of this dividend is Wednesday, September 16th. Western Union’s dividend payout ratio (DPR) is 76.42%.

Hedge Funds Weigh In On Western Union

Hedge funds and other institutional investors have recently modified their holdings of the company. Ascentis Independent Advisors purchased a new stake in shares of Western Union in the 1st quarter worth about $30,000. Caitong International Asset Management Co. Ltd increased its position in shares of Western Union by 179.6% during 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 buying an additional 2,146 shares during the period. Nykredit A S purchased a new position in shares of Western Union during the second quarter valued at about $51,000. Leonteq Securities AG bought a new position in Western Union in the fourth quarter worth about $56,000. Finally, Parallel Advisors LLC lifted its holdings in Western Union by 197.3% in the first quarter. Parallel Advisors LLC now owns 6,516 shares of the credit services provider’s stock worth $57,000 after buying an additional 4,324 shares during the period. 91.81% of the stock is owned by institutional investors.

Western Union Company Profile

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.