On July 28, 2023, shares of Western Union (NYSE: WU) opened at $12.34, displaying a modest gain in the stock market. The business’s fifty-day moving average price was recorded at $11.82, while its 200-day moving average price stood at $12.20. Over the span of twelve months, Western Union marked a low of $10.07 and a high of $17.42, indicating some volatility but also potential for growth.
Western Union currently holds a market capitalization of approximately $4.62 billion with a price-to-earnings ratio (PE) of 6.26 and a beta of 0.85. These statistics offer insights into the company’s financial health and its vulnerability to market fluctuations.
Examining its financial structure further, Western Union has shown a debt-to-equity ratio of 4.45, which may raise some concerns about its leverage position among shareholders and investors alike. However, it has managed to maintain acceptable liquidity with both its current ratio and quick ratio standing at 1.02.
In recent times, several equities research analysts have shared their perspectives on Western Union’s stock performance through research reports and target prices based on their evaluations and forecasted trends in the industry.
For instance, Truist Financial boosted its price target on Western Union from $10.00 to $13.00 in a recent research report – reflecting optimism regarding future growth prospects for the company within the sector it operates.
Conversely, The Goldman Sachs Group expressed more caution by dropping their target price on Western Union from $12.50 to $11.00 while labeling it as “sell”. This report encourages investors to exercise careful consideration before making any investment decisions related to this particular stock.
Citigroup took a more neutral stance by raising their target price from $11.50 to $12.50 for Western Union while assigning a “neutral” rating. This opinion acknowledges that the company offers a relatively stable investment option but may not provide significant opportunities for rapid growth.
On another note, JPMorgan Chase & Co. expressed some positive sentiment by boosting its price target on Western Union from $12.00 to $13.00 in their research analysis. The institution believes that the company has the potential for moderate growth and profitability within the credit services industry.
Lastly, Susquehanna offered a more conservative perspective by decreasing their target price from $15.00 to $12.00 in their recent research report on Western Union, implying concerns about its future performance.
Taking into account all these research analyses, it is important to note that five equities research analysts have rated Western Union as a “sell”, while ten have given it a “hold” rating. Based on data from Bloomberg.com, the stock has an average rating of “Hold” and an average target price of $13.32.
Additionally, Western Union announced a quarterly dividend which will be paid on Friday, September 29th, allowing shareholders to benefit from $0.235 per share. Shareholders of record as of Friday, September 15th will be eligible for this dividend with an ex-dividend date of Thursday, September 14th. Overall, this represents an annualized dividend of $0.94 and a yield of 7.62%. Western Union’s current dividend payout ratio stands at approximately 47.72%.
Western Union recently disclosed its quarterly earnings data on Wednesday, July 26th – reporting earnings per share (EPS) of $0.51 for the quarter, surpassing the consensus estimate of $0.39 by an impressive margin of $0.12.
Moreover, Western Union demonstrated robust financial performance with a return on equity (ROE) reaching an exceptional level of 122.88% alongside a net margin of 17.12%. The company’s revenue for the quarter reached $1.17 billion, exceeding analysts’ expectations of $1.05 billion, indicating significant growth of 2.8% compared to the same period last year.
These recent earnings results have instilled confidence among investors and have further strengthened Western Union’s position in an industry where it competes with established players and emerging fintech startups.
In conclusion, Western Union has been navigating its way through market volatility with mixed reviews from various equities research analysts regarding its potential for growth and profitability. While some express caution, others exhibit optimism based on their individual evaluations. The recent announcement of quarterly dividends alongside impressive earnings data suggests that Western Union is poised to continue capturing market share and providing value to its shareholders in the ever-evolving financial services industry.
The Western Union Company
Updated on: 02/03/2024
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
Positive Growth Outlook and Institutional Support Drive Confidence in Western Union’s Future Performance
July 28, 2023 – In a recent report issued on Thursday, July 27th, research analysts at William Blair have raised their Q3 2024 EPS estimates for shares of The Western Union Company (NYSE:WU). The credit services provider, known for its global money transfer services, is expected to earn $0.42 per share for the quarter, up from the previous estimate of $0.40 by William Blair analyst C. Kennedy. This upward revision reflects positive growth prospects for Western Union in the coming months.
As the consensus estimate stands currently, Western Union’s full-year earnings for the current fiscal year are projected to be $1.61 per share. With this improved quarterly estimation by William Blair, investors can anticipate a stronger performance by the company and potentially higher returns on their investments.
In addition to the positive outlook provided by William Blair’s forecast, it is noteworthy to mention the recent activity of hedge funds in relation to Western Union. Several hedge funds have either increased or decreased their stakes in WU, indicating varying levels of confidence in the company’s future performance.
For instance, Vanguard Group Inc., one of the world’s largest investment management companies, has raised its position in Western Union by 8.3% during the third quarter. This move demonstrates Vanguard Group Inc.’s belief in the credit services provider and its expectation of favorable returns on ownership.
Similarly, State Street Corp has also increased its stake in Western Union by 10.4% during the first quarter. Managing assets worth billions of dollars globally, State Street Corp’s decision to boost its position further exhibits a high degree of confidence in Western Union’s ability to generate profits and enhance shareholder value.
Another notable institutional investor that has shown robust faith in Western Union is Jupiter Asset Management Ltd., with an impressive increase of 70.3% during the first quarter. By significantly increasing its stake, Jupiter Asset Management Ltd reinforces its conviction about the credit services provider’s potential for growth and success in the near future.
Van ECK Associates Corp also merits attention for increasing its position in Western Union by 13.7% during the fourth quarter. This strategic move showcases Van ECK Associates Corp’s confidence in Western Union’s ability to outperform competitors and deliver solid returns to shareholders.
Lastly, Charles Schwab Investment Management Inc. raised its stake by 10.8% during the fourth quarter, indicating its belief in Western Union’s positive outlook and profitability prospects.
Together, these increased stakes by prominent hedge funds demonstrate a collective sense of optimism regarding Western Union’s trajectory and underscore the company’s fundamental strength in the credit services market.
It is important to note that institutional investors currently own a significant majority of Western Union’s stock (92.22%). This suggests that their collective confidence serves as validation for individual investors looking to capitalize on the potential growth opportunities offered by the company.
As always, investors should consider various factors before making any investment decisions. However, with William Blair raising Q3 2024 EPS estimates and prominent hedge funds showing unwavering support for Western Union, it may be prudent for investors to assess the potential benefits of adding this credit services provider to their portfolios.