Western Union (NYSE:WU) Reaches New 12-Month Low – Should You Sell?

The Western Union Company (NYSE:WU)’s stock price reached a new 52-week low on Friday . The company traded as low as $9.92 and last traded at $10.17, with a volume of 3474912 shares trading hands. The stock had previously closed at $10.50.

Analyst Upgrades and Downgrades

Several research analysts recently commented on the stock. Keefe, Bruyette & Woods decreased their target price on shares of Western Union from $13.00 to $12.00 and set a “market perform” rating on the stock in a research note on Monday, December 9th. JMP Securities reissued a “market perform” rating on shares of Western Union in a research note on Thursday, February 6th. Morgan Stanley lowered their price target on Western Union from $10.00 to $9.00 and set an “underweight” rating for the company in a research report on Wednesday, February 5th. Barclays cut their price objective 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. Finally, Royal Bank of Canada restated a “sector perform” rating and set a $14.00 target price on shares of Western Union in a report on Thursday. Three research analysts have rated the stock with a sell rating and eight have issued a hold rating to the company. Based on data from MarketBeat, Western Union currently has an average rating of “Hold” and an average target price of $12.11.

Western Union Trading Down 3.6 %

The stock’s fifty day moving average price is $10.64 and its 200 day moving average price is $10.89. The stock has a market cap of $3.42 billion, a P/E ratio of 3.71, a PEG ratio of 1.32 and a beta of 0.79. The company has a current ratio of 1.20, a quick ratio of 1.10 and a debt-to-equity ratio of 3.04.

Western Union (NYSE:WU) last announced its quarterly earnings data on Tuesday, February 4th. The credit services provider reported $0.40 earnings per share for the quarter, missing analysts’ consensus estimates of $0.42 by ($0.02). Western Union had a return on equity of 96.90% and a net margin of 22.19%. Equities research analysts expect that The Western Union Company will post 1.79 earnings per share for the current year.

Western Union Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, March 31st. Stockholders of record on Monday, March 17th were issued a dividend of $0.235 per share. The ex-dividend date was Monday, March 17th. This represents a $0.94 annualized dividend and a dividend yield of 9.28%. Western Union’s payout ratio is presently 34.43%.

Western Union announced that its Board of Directors has approved a stock buyback plan on Friday, December 13th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the credit services provider to purchase up to 27.5% of its shares through open market purchases. Shares buyback plans are generally a sign that the company’s board believes its stock is undervalued.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. R Squared Ltd purchased a new position in Western Union in the 4th quarter worth approximately $25,000. Independence Bank of Kentucky purchased a new position in shares of Western Union in the fourth quarter worth $28,000. McIlrath & Eck LLC lifted its holdings in shares of Western Union by 1,487.6% during the fourth quarter. McIlrath & Eck LLC now owns 3,080 shares of the credit services provider’s stock valued at $33,000 after purchasing an additional 2,886 shares in the last quarter. Huntington National Bank increased its holdings in Western Union by 662.7% in the 4th quarter. Huntington National Bank now owns 3,722 shares of the credit services provider’s stock worth $39,000 after buying an additional 3,234 shares in the last quarter. Finally, Coppell Advisory Solutions LLC raised its position in Western Union by 267.5% in the 4th quarter. Coppell Advisory Solutions LLC now owns 3,833 shares of the credit services provider’s stock worth $41,000 after buying an additional 2,790 shares during the last quarter. Institutional investors own 91.81% of the company’s stock.

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.