Western Union (NYSE:WU) Price Target Cut to $10.00 by Analysts at Barclays

Western Union (NYSE:WU) had its price objective cut by Barclays from $11.00 to $10.00 in a report released on Friday morning,Benzinga reports. They currently have an underweight rating on the credit services provider’s stock.

A number of other research firms have also issued reports on WU. UBS Group reduced their target price on Western Union from $13.50 to $12.00 and set a “neutral” rating for the company in a report on Thursday, October 24th. StockNews.com upgraded Western Union from a “sell” rating to a “hold” rating in a research report on Friday, October 25th. Keefe, Bruyette & Woods dropped their target price on Western Union from $13.00 to $12.00 and set a “market perform” rating on the stock in a report on Monday, December 9th. Finally, JPMorgan Chase & Co. decreased their price target on shares of Western Union from $14.00 to $12.00 and set an “underweight” rating for the company in a report on Tuesday, August 20th. Three investment analysts have rated the stock with a sell rating and nine have given a hold rating to the company’s stock. According to MarketBeat.com, Western Union has a consensus rating of “Hold” and an average price target of $12.63.

Western Union Trading Down 1.3 %

NYSE:WU opened at $10.76 on Friday. Western Union has a 1 year low of $10.51 and a 1 year high of $14.19. The business has a fifty day moving average of $11.10 and a 200-day moving average of $11.80. 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 stock has a market cap of $3.63 billion, a price-to-earnings ratio of 5.52, a PEG ratio of 1.53 and a beta of 0.86.

Western Union (NYSE:WU) last released its earnings results 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 return on equity of 120.39% and a net margin of 16.07%. The firm had revenue of $1.04 billion during the quarter, compared to the consensus estimate of $1.03 billion. During the same period in the prior year, the firm posted $0.43 earnings per share. The firm’s revenue for the quarter was down 5.6% compared to the same quarter last year. Equities analysts predict that Western Union will post 1.77 earnings per share for the current year.

Western Union Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 31st. Stockholders of record on Monday, December 23rd will be paid a $0.235 dividend. This represents a $0.94 dividend on an annualized basis and a dividend yield of 8.74%. Western Union’s dividend payout ratio (DPR) is currently 48.21%.

Western Union declared that its Board of Directors has initiated a stock buyback 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 buy up to 27.5% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board believes its stock is undervalued.

Hedge Funds Weigh In On Western Union

A number of large investors have recently modified their holdings of the stock. True Wealth Design LLC bought a new position in shares of Western Union in the 3rd quarter worth $25,000. Quarry LP boosted its holdings in Western Union by 52.9% during the second quarter. Quarry LP now owns 2,588 shares of the credit services provider’s stock worth $32,000 after buying an additional 895 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its holdings in Western Union by 89.3% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 3,226 shares of the credit services provider’s stock worth $39,000 after buying an additional 1,522 shares during the last quarter. Abich Financial Wealth Management LLC grew its position in shares of Western Union by 31.1% during the 2nd quarter. Abich Financial Wealth Management LLC now owns 4,316 shares of the credit services provider’s stock worth $53,000 after buying an additional 1,024 shares during the period. Finally, Tompkins Financial Corp bought a new stake in shares of Western Union in the 3rd quarter valued at about $60,000. 91.81% of the stock is currently owned by institutional investors and hedge funds.

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.