Western Union (NYSE:WU) Sets New 1-Year Low on Disappointing Earnings

The Western Union Company (NYSE:WU) shares hit a new 52-week low on Friday after the company announced weaker than expected quarterly earnings. The stock traded as low as $6.91 and last traded at $6.9720, with a volume of 1021700 shares trading hands. The stock had previously closed at $7.69.

The credit services provider reported $0.31 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.43 by ($0.12). The firm had revenue of $1.01 billion for the quarter, compared to analyst estimates of $1.02 billion. Western Union had a net margin of 10.88% and a return on equity of 55.94%. Western Union’s revenue for the quarter was down 1.3% on a year-over-year basis. During the same period in the previous year, the business posted $0.37 EPS. Western Union has set its FY 2026 guidance at 1.250-1.350 EPS.

Western Union Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Tuesday, June 16th were given a dividend of $0.235 per share. This represents a $0.94 annualized dividend and a dividend yield of 13.4%. The ex-dividend date was Tuesday, June 16th. Western Union’s dividend payout ratio (DPR) is 69.12%.

Key Stories Impacting Western Union

Here are the key news stories impacting Western Union this week:

• Positive Sentiment: Management is targeting a $50 million annualized cost reduction run rate by year-end, with artificial intelligence and digital initiatives expected to improve efficiency. Consumer Services revenue increased 4%, while Branded Digital revenue rose 7% and transactions grew 25%. Western Union cost reduction and guidance article
• Neutral Sentiment: Western Union continues discussions with regulators regarding its planned Intermex acquisition, but the transaction’s delay postpones expected synergies. The company is also emphasizing digital and AI investments as migration trends and retail activity remain challenging. Western Union AI savings and migration article
• Negative Sentiment: Second-quarter revenue declined 1% year over year to approximately $1.013 billion, while adjusted EPS of $0.31 missed the $0.43 consensus estimate. GAAP net income fell 37% to $76.7 million, diluted EPS dropped to $0.24 from $0.37, and operating margin contracted to 13% from 19%. Consumer Money Transfer revenue declined 2%, reflecting weakness in the Americas retail business. Western Union second-quarter results
• Negative Sentiment: Fiscal 2026 adjusted EPS guidance of $1.25–$1.35 is well below the roughly $1.75 analyst consensus, while revenue guidance of $4.2–$4.3 billion is around or below expectations. Susquehanna subsequently cut its price target from $10 to $8 and maintained a neutral rating, signaling limited near-term confidence despite the stock’s low valuation. Benzinga price target update

Analysts Set New Price Targets

Several brokerages have recently commented on WU. Susquehanna reduced their target price on Western Union from $10.00 to $8.00 and set a “neutral” rating on the stock in a report on Friday. Barclays cut their price objective on shares of Western Union from $7.00 to $6.00 and set an “underweight” rating on the stock in a report on Friday. 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 note on Friday, July 17th. Wolfe Research reiterated an “underperform” rating and set a $8.00 target price on shares of Western Union in a report on Friday. Finally, JPMorgan Chase & Co. reduced their price target on shares of Western Union from $9.00 to $8.00 and set an “underweight” rating for the company in a report on Monday, July 13th. Five investment analysts have rated the stock with a Hold rating and five have given a Sell rating to the company’s stock. According to MarketBeat.com, Western Union presently has an average rating of “Reduce” and an average target price of $8.19.

Institutional Trading of Western Union

A number of hedge funds have recently made changes to their positions in the business. RiverFront Investment Group LLC boosted its stake in Western Union by 4.7% during the fourth quarter. RiverFront Investment Group LLC now owns 28,662 shares of the credit services provider’s stock worth $267,000 after acquiring an additional 1,278 shares in the last quarter. Fifth Third Bancorp boosted its stake in Western Union by 67.0% during the 4th quarter. Fifth Third Bancorp now owns 3,331 shares of the credit services provider’s stock valued at $31,000 after purchasing an additional 1,336 shares during the last quarter. Kelleher Financial Advisors grew its holdings in Western Union by 16.0% during the fourth quarter. Kelleher Financial Advisors now owns 9,992 shares of the credit services provider’s stock worth $93,000 after buying an additional 1,381 shares in the last quarter. Kestra Investment Management LLC grew its stake in shares of Western Union by 0.6% in the 4th quarter. Kestra Investment Management LLC now owns 239,428 shares of the credit services provider’s stock worth $2,229,000 after acquiring an additional 1,398 shares in the last quarter. Finally, PFG Investments LLC grew its position in Western Union by 6.6% in the 1st quarter. PFG Investments LLC now owns 23,382 shares of the credit services provider’s stock worth $204,000 after purchasing an additional 1,454 shares in the last quarter. 91.81% of the stock is owned by institutional investors and hedge funds.

Western Union Stock Down 8.9%

The company has a market capitalization of $2.19 billion, a PE ratio of 5.19, a P/E/G ratio of 1.03 and a beta of 0.46. The stock has a 50-day moving average of $7.84 and a 200 day moving average of $8.76. The company has a quick ratio of 1.11, a current ratio of 1.11 and a debt-to-equity ratio of 2.88.

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.