Western Union (NYSE:WU) Hits New 52-Week Low – Here’s What Happened

The Western Union Company (NYSE:WU) shares reached a new 52-week low on Friday . The stock traded as low as $6.24 and last traded at $6.2550, with a volume of 8620250 shares trading hands. The stock had previously closed at $6.53.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on WU. Cantor Fitzgerald reduced their target price on shares of Western Union from $8.00 to $7.00 and set an “underweight” rating on the stock in a research report on Monday, August 3rd. Citigroup reduced their price objective on Western Union from $8.50 to $7.00 and set a “neutral” rating on the stock in a report on Monday, August 3rd. Monness Crespi & Hardt reiterated a “sell” rating and issued a $6.00 price objective on shares of Western Union in a research report on Friday, July 31st. Royal Bank Of Canada lowered their target price on Western Union from $9.00 to $8.00 and set a “sector perform” rating for the company in a research note on Friday, July 31st. Finally, New Street Research reaffirmed a “reduce” rating on shares of Western Union in a research note on Thursday, August 13th. Six analysts have rated the stock with a Hold rating and eight have given a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Strong Sell” and an average price target of $7.55.

Western Union Trading Down 4.4%

The company has a debt-to-equity ratio of 2.95, a current ratio of 1.12 and a quick ratio of 1.12. The firm has a market capitalization of $1.95 billion, a price-to-earnings ratio of 5.08 and a beta of 0.50. The business has a 50 day moving average of $7.43 and a 200 day moving average of $8.16.

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

Western Union Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Wednesday, September 16th will be issued a dividend of $0.235 per share. This represents a $0.94 dividend on an annualized basis and a dividend yield of 15.1%. The ex-dividend date is Wednesday, September 16th. Western Union’s dividend payout ratio (DPR) is presently 76.42%.

Institutional Trading of Western Union

Several hedge funds and other institutional investors have recently modified their holdings of the company. BlackRock Inc. bought a new position in shares of Western Union during the second quarter worth about $241,806,000. Capital Research Global Investors grew its stake in shares of Western Union by 35.3% during the 4th quarter. Capital Research Global Investors now owns 10,407,960 shares of the credit services provider’s stock worth $96,898,000 after acquiring an additional 2,716,385 shares in the last quarter. LSV Asset Management grew its stake in shares of Western Union by 1.3% during the 4th quarter. LSV Asset Management now owns 9,733,727 shares of the credit services provider’s stock worth $90,621,000 after acquiring an additional 124,650 shares in the last quarter. Allianz Asset Management GmbH raised its holdings in shares of Western Union by 24.5% in the fourth quarter. Allianz Asset Management GmbH now owns 7,879,726 shares of the credit services provider’s stock valued at $73,360,000 after purchasing an additional 1,550,100 shares during the last quarter. Finally, Dimensional Fund Advisors LP lifted its position in shares of Western Union by 15.1% in the first quarter. Dimensional Fund Advisors LP now owns 7,902,175 shares of the credit services provider’s stock worth $68,989,000 after purchasing an additional 1,039,604 shares in the last quarter. Institutional investors and hedge funds own 91.81% of the company’s stock.

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.