According to a report from Bloomberg, research firms have assigned a consensus rating of “Reduce” for shares of The Western Union Company (NYSE:WU). Out of the fourteen research firms covering the company, five analysts have recommended selling the stock, while nine have suggested holding it. The average price objective for the next 12 months, among brokerages that have covered the stock in the past year, stands at $12.81.
On Friday, shares of NYSE:WU opened at $12.94. The company has a current ratio and quick ratio of 1.12 each, indicating its ability to meet short-term obligations. With a debt-to-equity ratio of 4.49, Western Union’s financial leverage seems relatively high. The firm’s fifty-day simple moving average was recorded at $12.24 and its two hundred-day simple moving average stood at $11.72.
Western Union possesses a market capitalization of roughly $4.85 billion and has a price-to-earnings (PE) ratio of 6.57 along with a price-to-earnings-growth (PEG) ratio of 4.02, suggesting potential overvaluation compared to its expected earnings growth rate outlined by its PEG ratio value above 1. Furthermore, the company exhibits a beta coefficient of 0.86; thus it is less volatile than the overall market.
Over the last twelve months, Western Union shares reached their peak at $14.84 and their lowest point at $10.07.
Moving on to shareholder activity, various hedge funds and institutional investors have made recent transactions involving WU shares. Raymond James Financial Services Advisors Inc., for instance, increased its position in Western Union by 16.2% during Q1 this year; they now own around 30,665 shares valued at $575,000 after obtaining an additional 4,265 shares.
American Century Companies Inc., on the other hand, augmented its holdings in Western Union during Q1 by 137.8%. The firm now possesses approximately 117,142 shares of the credit services provider’s stock, worth about $2.19 million after acquiring an additional 67,876 shares.
Similarly, Cambridge Investment Research Advisors Inc. increased its holdings in Western Union by 14.8% during the first quarter and currently owns 58,715 shares valued at $1.10 million after purchasing an additional 7,576 shares.
Additionally, Dimensional Fund Advisors LP augmented its position in WU by 18.2% during Q1 this year and now owns around 2,410,073 shares of the company’s stock worth roughly $45.17 million after obtaining an additional 370,987 shares.
Furthermore, Vontobel Holding Ltd. raised their holdings in Western Union by 3.2% during the first quarter. They now possess around 72,887 shares valued at approximately $1.40 million after buying an additional 2,286 shares.
Institutional investors currently own around 88.83% of Western Union’s outstanding shares.
Regarding financial performance, Western Union released its quarterly earnings results on July 26th of this year. The credit services provider reported earnings per share (EPS) of $0.51 for the quarter a figure that surpasses analysts’ consensus estimates by $0.12 indicating better-than-expected performance.
During the same period last year, Western Union earned $0.51 earnings per share; it experienced a slight revenue increase of around 2.8%, generating sales of approximately $1.17 billion compared to analyst estimates of $1.05 billion.
With a net margin of about 17.12% and a remarkable return on equity rate reaching as high as116.87%, Western union demonstrates solid profitability ratios.
Overall, equities research analysts predict that for the current fiscal year, Western Union will post earnings per share of 1.71.
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Assessing Western Union’s Potential: Positive Research Evaluations and Dividend Payout
In recent news, several esteemed research firms have put forth their assessments of Western Union (WU), shedding light on the company’s potential and overall performance. Keefe, Bruyette & Woods, in a research note released on July 27th, raised their target price for WU shares from $12.00 to $14.00 and provided the company with a “market perform” rating. Similarly, Citigroup also boosted their target price from $11.50 to $12.50 while maintaining a “neutral” rating in their research note published on July 24th. JPMorgan Chase & Co., on the other hand, raised their target price for WU shares from $12.00 to $13.00.
It is worth noting that StockNews.com initiated coverage on Western Union on August 17th, providing a “hold” rating for the company’s shares. This demonstrates that experts are noticing Western Union’s trajectory and considering its potential in the market.
Moreover, Truist Financial recently raised its price target for shares of Western Union from $10.00 to $13.00 in a report released on July 27th, further affirming positive sentiments towards the company.
Beyond these evaluations by research firms, it is important to highlight that Western Union has also declared its quarterly dividend as of late. Shareholders registered as of Friday, September 15th will be entitled to receive a dividend of $0.235 per share on September 29th. This equates to an annualized dividend of $0.94 and reflects a yield of 7.26%. Regarding the ex-dividend date the day after which buyers no longer qualify for the upcoming dividend it falls on Thursday, September 14th.
Analyzing Western Union’s dividend payout ratio (DPR) reveals that it currently stands at 47.72%. This means that almost half of the company’s earnings is distributed to shareholders as dividends, making it an attractive choice for investors seeking consistent returns.
Taking into account these recent developments, Western Union presents itself as a sturdy investment option. With the positive assessments from research firms and the steady dividend payout, the company exhibits potential for growth in the market.
Investors should consider these factors when making informed decisions about their portfolios. It would be prudent to monitor Western Union’s performance closely over the coming months to fully comprehend its standing within the financial sector.
