Western Union (NYSE:WU) Reaches New 12-Month Low After Earnings Miss

The Western Union Company (NYSE:WU) shares hit a new 52-week low during mid-day trading on Tuesday following a weaker than expected earnings announcement. The company traded as low as $10.04 and last traded at $10.28, with a volume of 7174924 shares. The stock had previously closed at $10.32.

The credit services provider reported $0.40 earnings per share for the quarter, missing the consensus estimate of $0.42 by ($0.02). Western Union had a return on equity of 120.39% and a net margin of 16.07%.

Western Union Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, March 31st. Investors of record on Monday, March 17th will be issued a $0.235 dividend. This represents a $0.94 dividend on an annualized basis and a yield of 8.54%. The ex-dividend date of this dividend is Monday, March 17th. Western Union’s dividend payout ratio is currently 48.21%.

Western Union declared that its Board of Directors has approved a share 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 shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on the company. StockNews.com raised Western Union from a “sell” rating to a “hold” rating in a report on Friday, October 25th. Susquehanna reduced their price target on Western Union from $13.00 to $12.00 and set a “neutral” rating for the company in a report on Wednesday. Barclays reduced their target price on Western Union from $11.00 to $10.00 and set an “underweight” rating on the stock in a report on Friday, December 13th. UBS Group reduced their target price on Western Union from $13.50 to $12.00 and set a “neutral” rating on the stock in a report on Thursday, October 24th. Finally, Morgan Stanley reduced their target price on Western Union from $10.00 to $9.00 and set an “underweight” rating on the stock in a report on Wednesday. Three analysts have rated the stock with a sell rating and ten have issued a hold rating to the company. According to data from MarketBeat, Western Union currently has an average rating of “Hold” and a consensus target price of $12.20.

Institutional Trading of Western Union

Large investors have recently added to or reduced their stakes in the business. Bank of New York Mellon Corp boosted its stake in Western Union by 41.7% during the 4th quarter. Bank of New York Mellon Corp now owns 6,305,933 shares of the credit services provider’s stock valued at $66,843,000 after purchasing an additional 1,857,012 shares in the last quarter. Hotchkis & Wiley Capital Management LLC bought a new position in Western Union during the 3rd quarter valued at $11,726,000. Foundry Partners LLC bought a new position in Western Union during the 3rd quarter valued at $8,124,000. Cyndeo Wealth Partners LLC bought a new position in Western Union during the 3rd quarter valued at $6,190,000. Finally, Quantbot Technologies LP bought a new position in Western Union during the 3rd quarter valued at $3,663,000. 91.81% of the stock is currently owned by institutional investors and hedge funds.

Western Union Trading Up 6.0 %

The stock has a market capitalization of $3.72 billion, a P/E ratio of 5.64, a price-to-earnings-growth ratio of 1.40 and a beta of 0.85. The company has a debt-to-equity ratio of 3.96, a quick ratio of 1.10 and a current ratio of 1.10. The business has a 50 day simple moving average of $10.61 and a 200-day simple moving average of $11.27.

About Western Union

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.