Western Union (NYSE:WU) Shares Gap Up Following Strong Earnings

The Western Union Company (NYSE:WU) shares gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $8.14, but opened at $8.78. Western Union shares last traded at $9.02, with a volume of 7,271,691 shares changing hands.

The credit services provider reported $0.47 EPS for the quarter, topping analysts’ consensus estimates of $0.43 by $0.04. The firm had revenue of $1.03 billion for the quarter, compared to analyst estimates of $1.03 billion. Western Union had a net margin of 18.80% and a return on equity of 60.76%. The business’s revenue for the quarter was down .3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.46 EPS. Western Union has set its FY 2025 guidance at 1.650-1.750 EPS.

Western Union Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, September 30th. Shareholders of record on Tuesday, September 16th were paid a dividend of $0.235 per share. The ex-dividend date of this dividend was Tuesday, September 16th. This represents a $0.94 annualized dividend and a yield of 10.5%. Western Union’s payout ratio is 35.61%.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on WU shares. Weiss Ratings reiterated a “hold (c-)” rating on shares of Western Union in a research report on Friday. UBS Group cut their target price on Western Union from $10.50 to $8.50 and set a “neutral” rating for the company in a research note on Tuesday, July 29th. Royal Bank Of Canada decreased their price target on shares of Western Union from $13.00 to $9.00 and set a “sector perform” rating on the stock in a research note on Tuesday, July 29th. JPMorgan Chase & Co. set a $10.00 price objective on shares of Western Union in a research note on Tuesday, July 29th. Finally, Deutsche Bank Aktiengesellschaft began coverage on shares of Western Union in a report on Thursday, July 17th. They set a “hold” rating and a $9.00 target price on the stock. Ten research analysts have rated the stock with a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Reduce” and an average target price of $8.55.

Insiders Place Their Bets

In other news, CFO Matthew Cagwin acquired 17,500 shares of the stock in a transaction dated Monday, August 18th. The stock was purchased at an average cost of $8.36 per share, with a total value of $146,300.00. Following the completion of the purchase, the chief financial officer owned 225,611 shares in the company, valued at approximately $1,886,107.96. The trade was a 8.41% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Devin Mcgranahan bought 176,470 shares of the business’s stock in a transaction that occurred on Thursday, August 21st. The stock was acquired at an average cost of $8.49 per share, for a total transaction of $1,498,230.30. Following the completion of the purchase, the chief executive officer directly owned 913,125 shares of the company’s stock, valued at $7,752,431.25. The trade was a 23.96% increase in their ownership of the stock. The disclosure for this purchase can be found here. Corporate insiders own 1.58% of the company’s stock.

Institutional Investors Weigh In On Western Union

Several institutional investors and hedge funds have recently bought and sold shares of the business. MCF Advisors LLC increased its stake in shares of Western Union by 464.3% during the first quarter. MCF Advisors LLC now owns 3,397 shares of the credit services provider’s stock valued at $36,000 after buying an additional 2,795 shares during the period. Hantz Financial Services Inc. boosted its holdings in Western Union by 667.0% in the second quarter. Hantz Financial Services Inc. now owns 4,602 shares of the credit services provider’s stock valued at $39,000 after acquiring an additional 4,002 shares in the last quarter. GAMMA Investing LLC increased its position in Western Union by 188.1% during the 1st quarter. GAMMA Investing LLC now owns 3,803 shares of the credit services provider’s stock valued at $40,000 after purchasing an additional 2,483 shares during the period. Caldwell Trust Co bought a new position in Western Union in the 2nd quarter worth $45,000. Finally, Farmers & Merchants Investments Inc. lifted its position in shares of Western Union by 2,225.8% in the 2nd quarter. Farmers & Merchants Investments Inc. now owns 5,675 shares of the credit services provider’s stock worth $48,000 after purchasing an additional 5,431 shares during the period. Hedge funds and other institutional investors own 91.81% of the company’s stock.

Western Union Price Performance

The company has a current ratio of 1.15, a quick ratio of 1.15 and a debt-to-equity ratio of 3.11. The business’s 50 day moving average price is $8.32 and its two-hundred day moving average price is $8.80. The stock has a market cap of $2.90 billion, a P/E ratio of 3.92, a price-to-earnings-growth ratio of 2.79 and a beta of 0.61.

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.