Western Union (NYSE:WU) Hits New 52-Week Low – Time to Sell?

The Western Union Company (NYSE:WU)’s stock price reached a new 52-week low during trading on Wednesday . The stock traded as low as $10.26 and last traded at $10.30, with a volume of 462717 shares. The stock had previously closed at $10.43.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the company. Barclays decreased their target price on Western Union from $11.00 to $10.00 and set an “underweight” rating on the stock in a research report on Friday, December 13th. StockNews.com raised shares of Western Union from a “sell” rating to a “hold” rating in a research note on Friday, October 25th. UBS Group reduced their target price on shares of Western Union from $13.50 to $12.00 and set a “neutral” rating for the company in a research report on Thursday, October 24th. Finally, Keefe, Bruyette & Woods lowered their price target on shares of Western Union from $13.00 to $12.00 and set a “market perform” rating on the stock in a research report on Monday, December 9th. Two equities research analysts have rated the stock with a sell rating and nine have given a hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $12.63.

Western Union Stock Performance

The company has a market capitalization of $3.47 billion, a PE ratio of 5.27, a P/E/G ratio of 1.51 and a beta of 0.85. The stock’s 50-day simple moving average is $10.77 and its 200 day simple moving average is $11.54. The company has a debt-to-equity ratio of 3.96, a quick ratio of 1.10 and a current ratio of 1.10.

Western Union (NYSE:WU) last released its quarterly earnings data on Wednesday, October 23rd. The credit services provider reported $0.46 earnings per share for the quarter, topping analysts’ consensus estimates of $0.44 by $0.02. Western Union had a net margin of 16.07% and a return on equity of 120.39%. The company had revenue of $1.04 billion for the quarter, compared to analysts’ expectations of $1.03 billion. During the same quarter last year, the company earned $0.43 earnings per share. The firm’s revenue for the quarter was down 5.6% on a year-over-year basis. As a group, research analysts expect that The Western Union Company will post 1.77 earnings per share for the current fiscal year.

Western Union Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, December 31st. Stockholders of record on Monday, December 23rd were issued a $0.235 dividend. This represents a $0.94 annualized dividend and a dividend yield of 9.15%. The ex-dividend date of this dividend was Monday, December 23rd. Western Union’s payout ratio is currently 48.21%.

Western Union announced that its board has approved a stock repurchase plan on Friday, December 13th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the credit services provider to reacquire up to 27.5% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board of directors believes its shares are undervalued.

Institutional Trading of Western Union

Several institutional investors and hedge funds have recently added to or reduced their stakes in WU. Mackenzie Financial Corp boosted its holdings in Western Union by 30.7% in the 2nd quarter. Mackenzie Financial Corp now owns 348,850 shares of the credit services provider’s stock valued at $4,263,000 after purchasing an additional 82,018 shares in the last quarter. Foundry Partners LLC purchased a new position in Western Union in the third quarter worth $8,124,000. Kingsview Wealth Management LLC lifted its holdings in Western Union by 293.3% in the third quarter. Kingsview Wealth Management LLC now owns 198,002 shares of the credit services provider’s stock valued at $2,362,000 after acquiring an additional 147,658 shares during the period. Citigroup Inc. boosted its position in shares of Western Union by 19.0% during the 3rd quarter. Citigroup Inc. now owns 523,676 shares of the credit services provider’s stock worth $6,247,000 after purchasing an additional 83,715 shares in the last quarter. Finally, Orion Portfolio Solutions LLC acquired a new position in shares of Western Union during the 3rd quarter worth $734,000. 91.81% of the stock is owned by hedge funds and other institutional investors.

Western Union Company Profile

The Western Union Company provides money movement and payment services worldwide. The company operates through Consumer Money Transfer and Consumer Services segments. The Consumer Money Transfer segment facilitates money transfers for international cross-border and intra-country transfers, primarily through a network of retail agent locations, as well as through websites and mobile devices.