Western Union (NYSE:WU) Shares Gap Up Following Dividend Announcement

The Western Union Company (NYSE:WU)’s share price gapped up prior to trading on Monday following a dividend announcement from the company. The stock had previously closed at $10.76, but opened at $11.08. Western Union shares last traded at $11.16, with a volume of 1,040,956 shares traded.

The newly announced dividend which will be paid on Tuesday, December 31st. Shareholders of record on Monday, December 23rd will be issued a dividend of $0.235 per share. This represents a $0.94 dividend on an annualized basis and a yield of 8.43%. The ex-dividend date is Monday, December 23rd. Western Union’s dividend payout ratio is 48.21%.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on WU. UBS Group dropped their price target on shares of Western Union from $13.50 to $12.00 and set a “neutral” rating on the stock in a research report on Thursday, October 24th. Keefe, Bruyette & Woods dropped 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 report on Monday, December 9th. StockNews.com raised Western Union from a “sell” rating to a “hold” rating in a research report on Friday, October 25th. JPMorgan Chase & Co. cut their price objective on Western Union from $14.00 to $12.00 and set an “underweight” rating on the stock in a research report on Tuesday, August 20th. Finally, Barclays decreased their target price on Western Union from $11.00 to $10.00 and set an “underweight” rating for the company in a research report on Friday, December 13th. Three investment analysts have rated the stock with a sell rating and nine have given a hold rating to the company’s stock. According to data from MarketBeat, Western Union has a consensus rating of “Hold” and a consensus price target of $12.63.

Western Union Stock Performance

The firm has a market capitalization of $3.76 billion, a PE ratio of 5.72, a P/E/G ratio of 1.51 and a beta of 0.86. The company has a debt-to-equity ratio of 3.96, a current ratio of 1.10 and a quick ratio of 1.10. The company’s fifty day simple moving average is $11.09 and its 200 day simple moving average is $11.78.

Western Union (NYSE:WU) last released its quarterly earnings data on Wednesday, October 23rd. The credit services provider reported $0.46 EPS for the quarter, topping the consensus estimate of $0.44 by $0.02. The company had revenue of $1.04 billion during the quarter, compared to the consensus estimate of $1.03 billion. Western Union had a net margin of 16.07% and a return on equity of 120.39%. Western Union’s revenue for the quarter was down 5.6% on a year-over-year basis. During the same period last year, the firm earned $0.43 EPS. As a group, equities research analysts expect that The Western Union Company will post 1.77 EPS for the current fiscal year.

Western Union announced that its board has initiated a share repurchase plan on Friday, December 13th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the credit services provider to repurchase up to 27.5% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board believes its stock is undervalued.

Hedge Funds Weigh In On Western Union

Large investors have recently modified their holdings of the company. True Wealth Design LLC bought a new position in shares of Western Union in the third quarter worth approximately $25,000. Quarry LP grew its stake in Western Union by 52.9% in the 2nd quarter. Quarry LP now owns 2,588 shares of the credit services provider’s stock worth $32,000 after buying an additional 895 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its holdings in shares of Western Union by 89.3% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 3,226 shares of the credit services provider’s stock worth $39,000 after buying an additional 1,522 shares during the last quarter. Abich Financial Wealth Management LLC raised its position in shares of Western Union by 31.1% during the 2nd quarter. Abich Financial Wealth Management LLC now owns 4,316 shares of the credit services provider’s stock valued at $53,000 after buying an additional 1,024 shares in the last quarter. Finally, Tompkins Financial Corp bought a new stake in shares of Western Union during the 3rd quarter worth $60,000. 91.81% of the stock is currently owned by institutional investors.

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.