In an analysis conducted by Bloomberg.com, the Western Union Company has been given a consensus recommendation of “Reduce” by fourteen brokerages covering the company. Of these, five investment analysts have rated the stock with a sell rating and nine have given a hold rating to the company. This comes as no surprise, as the average 1-year target price among brokerages that have updated their coverage on the stock in the last year is $12.81.
Despite this slightly pessimistic outlook, it is worth noting that several hedge funds and institutional investors have recently made significant moves regarding their holdings in Western Union. Jupiter Asset Management Ltd., for instance, has increased its position in the company by 70.3% during the first quarter of this year. AQR Capital Management LLC has also lifted its position in Western Union by 155.3% in the fourth quarter of last year.
Vanguard Group Inc., one of the largest asset management companies globally, has lifted its position in Western Union by 8.3% as well. These moves indicate that some big players continue to see value or potential growth opportunities within the credit services provider.
Furthermore, Arrowstreet Capital Limited Partnership raised its position by 106.3% while BNP Paribas Arbitrage SNC reported an increase of 1,925.5% during the second quarter of this year alone. Such large-scale investments from institutional investors show a certain level of confidence in Western Union’s future prospects.
Additionally, it is important to mention that Western Union recently announced a quarterly dividend which will be paid on Friday, September 29th to investors who are recorded on Friday, September 15th. The dividend represents $0.235 per share and translates into a dividend yield of 7.88%.
These developments demonstrate contrasting viewpoints when it comes to assessing Western Union’s prospects. While some analysts hold a skeptical view regarding its potential for growth and recommend reducing holdings in the company, the recent investments made by prominent institutional investors indicate a belief in its future performance.
Investors and market observers will be closely watching Western Union’s next steps to determine whether it can address the concerns raised by some analysts and regain confidence among all stakeholders within the financial industry.
The Western Union Company
Updated on: 03/03/2024
Debt to equity ratio: Strong Buy
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
ROE: Strong Buy
We did not find social sentiment data for this stock
|Analyst / firm
Western Union Receives Mixed Analyst Reviews and Adjusted Price Targets for Stock
August 28, 2023
Western Union (NYSE:WU), a leading credit services provider, has recently been the subject of various research analyst reports. These reports offer insights into the company’s performance and provide recommendations on its stock. Several financial institutions have adjusted their price targets for Western Union, reflecting their assessments of the company’s future prospects.
In a report issued on Thursday, July 27th, JPMorgan Chase & Co. raised their price target for Western Union from $12.00 to $13.00. This adjustment suggests that JPMorgan Chase & Co. holds a positive outlook for the company and expects an increase in its stock value.
On the other hand, Susquehanna reduced their price target on shares of Western Union from $15.00 to $12.00 in a report released on Wednesday, May 3rd. Such adjustments are indicative of varying opinions among analysts regarding Western Union’s expected performance.
Additionally, Keefe, Bruyette & Woods increased their target price on Western Union from $12.00 to $14.00 and assigned it a “market perform” rating in a research note published on Thursday, July 27th.
StockNews.com initiated coverage on shares of Western Union in a research report dated Thursday, August 17th and bestowed a “hold” rating upon the stock without any explicit changes in price targets.
These reports give investors valuable information about the current sentiment surrounding Western Union. However, it is important to consider multiple perspectives and conduct due diligence before making any investment decisions.
On Monday morning, WU stock opened at $11.93 during trading hours. The firm’s 50-day moving average stands at $11.86, while its 200-day moving average is reported as $11.84.
Western Union boasts a market capitalization of approximately $4.47 billion with a P/E ratio of 6.06 and a price-to-earnings-growth ratio of 3.76. The company has a beta of 0.86, indicating that its stock is less volatile than the market as a whole.
The firm’s current ratio and quick ratio are both reported as 1.12, suggesting a relatively healthy financial position. Western Union also has a debt-to-equity ratio of 4.49, indicating that it relies more on borrowed funds to finance its operations.
On Wednesday, July 26th, Western Union released its latest earnings results. The company reported earnings per share (EPS) of $0.51 for the quarter, surpassing the consensus estimate of $0.39 by $0.12. This positive earnings surprise reflects Western Union’s ability to outperform expectations during the period.
Furthermore, Western Union achieved a return on equity (ROE) of an impressive 116.87% and recorded a net margin of 17.12%. These figures demonstrate the company’s efficiency in utilizing shareholder funds and generating profits.
During Q2 of the fiscal year, Western Union generated $1.17 billion in revenue compared to analysts’ expectations of $1.05 billion—an increase of 2.8% from the same period last year.
Sell-side analysts predict that Western Union will post earnings per share (EPS) of 1.71 for the current fiscal year.
In conclusion, Western Union has recently garnered attention from research analyst reports which have adjusted their price targets for its stock based on their assessments of its performance and potential future growth. Investors should take into consideration these varying opinions while conducting their own research before making investment decisions related to Western Union or any other investment opportunity.