On September 19, 2023, the State Board of Administration of Florida Retirement System revealed that it has reduced its holdings in The Western Union Company (NYSE:WU) by 5.4% during the first quarter, according to a recent filing with the Securities and Exchange Commission. The fund now owns 426,958 shares of the credit services provider’s stock after selling 24,447 shares in the quarter. As of the end of the reporting period, these shares were estimated to be worth $4,761,000, constituting approximately 0.11% of Western Union’s total value.
In addition to this development, Western Union recently declared a quarterly dividend which is set to be paid on Friday, September 29th. Shareholders who held positions as of Friday, September 15th will receive a dividend of $0.235 per share. Those who sold their shares on or before Thursday, September 14th will not be eligible for this dividend payment. At an annualized rate of $0.94 per share and a dividend yield of 7.41%, Western Union’s payout ratio currently stands at 47.72%.
The State Board of Administration’s decision to reduce its holdings in Western Union could indicate various factors at play regarding their investment strategy or sentiment towards the company’s long-term prospects. While it is unclear what specific reasons led to this reduction in holdings, investors should always monitor such actions by institutional investors as they can provide insights into market trends and institutional sentiment.
As for Western Union’s quarterly dividend announcement, it reflects the company’s commitment to distributing returns to its shareholders regularly. At an annualized dividend yield above-average compared to other companies within its sector and industry peers, Western Union offers an attractive income proposition for those seeking dividends from their investments.
Investors should keep in mind that dividend payments are subject to change based on factors such as financial performance and business conditions. Companies typically review their dividend policies periodically and adjust them accordingly to align with their overall strategies. Therefore, shareholders should stay informed about any updates or changes to Western Union’s dividend plans.
In conclusion, the State Board of Administration of Florida Retirement System has reduced its holdings in The Western Union Company during the 1st quarter, while Western Union itself has declared a quarterly dividend. Both actions should be taken into consideration by investors when analyzing the investment potential and financial outlook of Western Union. As always, it is important for individuals to conduct thorough research and stay abreast of developments in order to make informed decisions regarding their investments.
The Western Union Company
WU
Strong Buy
Updated on: 04/12/2023
Financial Health
Very Healthy
Debt to equity ratio: Strong Buy
Price to earnings ratio: Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
ROE: Strong Buy
Institutional Investors Show Confidence in Western Union’s Potential for Growth
The Western Union Company, a global leader in cross-border, cross-currency money movement and payment services, has recently seen some changes among its institutional investors. Cary Street Partners Asset Management LLC has purchased a new stake in the company during the first quarter of this year. The value of this acquisition is estimated to be around $25,000.
Meanwhile, Quarry LP has significantly increased its holdings in Western Union by 1,715.3% during the same period. This investment firm now owns 3,685 shares of the company’s stock worth approximately $41,000. Norwood Financial Corp has also shown confidence in Western Union by boosting its position in the company by 37.1%, resulting in ownership of 3,785 shares valued at $42,000.
Signaturefd LLC has experienced significant growth in its holdings as well, with a 67.8% increase during the first quarter. As a result, Signaturefd now possesses 5,312 shares of Western Union stock valued at $59,000. Ellevest Inc., too, has demonstrated faith in the company by increasing its position by 166%. The firm now owns around 7,225 shares worth $81,000.
These moves by institutional investors highlight their belief in Western Union’s potential for growth and success within the industry. It is noteworthy that these investments have contributed to institutional investors and hedge funds owning about 88.83% of the company’s stock.
In terms of research analysis on Western Union (NYSE:WU) shares, several analysts have expressed their views on the company’s future prospects. StockNews.com initiated coverage on Western Union and assigned it a “hold” rating as of Thursday, August 17th. Truist Financial raised their price objective for the stock from $10 to $13 in a recent research report published on Thursday, July 27th.
Citigroup also positively adjusted their target price from $11.50 to $12.50, maintaining a “neutral” rating for Western Union’s stock. Keefe, Bruyette & Woods analysts upped their price target from $12.00 to $14.00 and gave the company a “market perform” rating on Thursday, July 27th.
Additionally, JPMorgan Chase & Co. has increased its target price from $12.00 to $13.00 in a report published on Thursday, July 27th. It is worth noting that out of the fifteen investment analysts who have assessed the situation, five have given the stock a sell rating, while ten have recommended holding it.
According to Bloomberg data, Western Union currently holds a consensus rating of “Hold.” Additionally, analysts predict that the company will reach a consensus price target of $12.81.
On Tuesday, WU opened at $12.69 per share following this positive investor sentiment and analyst ratings. With a quick ratio and current ratio of 1.12 each and a debt-to-equity ratio of 4.49, The Western Union Company appears to be in relatively stable financial standing.
The company has experienced some fluctuations within the past twelve months—a low of $10.07 and a high of $14.84—indicating potential opportunities for investors who are keen on capitalizing on these shifts.
From an analytical perspective, Western Union’s stock has shown consistent trading patterns with a 50-day moving average of around $12.19 and a 200-day moving average of approximately $11.70.
When reporting its earnings results on Wednesday, July 26th, Western Union exceeded expectations with an EPS (earnings per share) of $0.51 for the quarter—$0.12 above market consensus estimates of $0.39 EPS.
The credit services provider further boasted revenue figures totaling $1.17 billion during the same quarter—surpassing analyst predictions of $1.05 billion in revenue. This represents a 2.8% increase compared to the corresponding quarter of the previous year.
Western Union enjoys a net margin of 17.12% and an exceptional return on equity, currently standing at a remarkable 116.87%. These figures add to the overall positive outlook for this established financial institution.
Considering these factors, equities research analysts are optimistic about Western Union’s future performance. On average, they expect the company to post earnings per share of 1.71 for the current year—an encouraging projection for investors.
As institutional investors modify their holdings and research analysts maintain their assessments, Western Union continues to navigate through ever-evolving market conditions with promising results and a resilient approach to growth and innovation.
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