Western Union’s (WU) “Sector Perform” Rating Reaffirmed at Royal Bank of Canada

Royal Bank of Canada reiterated their sector perform rating on shares of Western Union (NYSE:WU) in a research note published on Thursday morning,Benzinga reports. The firm currently has a $14.00 price objective on the credit services provider’s stock.

WU has been the topic of a number of other reports. Barclays reduced their price target on Western Union from $11.00 to $10.00 and set an “underweight” rating on the stock in a research report on Friday, December 13th. JMP Securities restated a “market perform” rating on shares of Western Union in a research report on Thursday, February 6th. Morgan Stanley lowered their price objective on Western Union from $10.00 to $9.00 and set an “underweight” rating on the stock in a research report on Wednesday, February 5th. Susquehanna decreased their target price on shares of Western Union from $13.00 to $12.00 and set a “neutral” rating for the company in a research note on Wednesday, February 5th. Finally, Keefe, Bruyette & Woods dropped their price target 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. Three equities research analysts have rated the stock with a sell rating and eight have issued a hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $12.11.

Western Union Stock Down 3.6 %

Shares of WU opened at $10.13 on Thursday. The company has a quick ratio of 1.10, a current ratio of 1.20 and a debt-to-equity ratio of 3.04. The business has a fifty day moving average of $10.64 and a 200 day moving average of $10.89. The company has a market cap of $3.42 billion, a PE ratio of 3.71, a P/E/G ratio of 1.32 and a beta of 0.79. Western Union has a 52-week low of $9.92 and a 52-week high of $13.93.

Western Union (NYSE:WU) last announced its earnings results on Tuesday, February 4th. The credit services provider reported $0.40 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.42 by ($0.02). Western Union had a net margin of 22.19% and a return on equity of 96.90%. On average, sell-side analysts expect that Western Union will post 1.79 EPS for the current year.

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

Western Union Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, March 31st. Shareholders of record on Monday, March 17th were paid a $0.235 dividend. This represents a $0.94 dividend on an annualized basis and a yield of 9.28%. The ex-dividend date of this dividend was Monday, March 17th. Western Union’s dividend payout ratio (DPR) is 34.43%.

Institutional Trading of Western Union

A number of hedge funds and other institutional investors have recently modified their holdings of WU. R Squared Ltd acquired a new stake in shares of Western Union during the 4th quarter worth approximately $25,000. Independence Bank of Kentucky acquired a new stake in Western Union during the fourth quarter worth $28,000. McIlrath & Eck LLC raised its position in Western Union by 1,487.6% in the fourth quarter. McIlrath & Eck LLC now owns 3,080 shares of the credit services provider’s stock valued at $33,000 after purchasing an additional 2,886 shares during the period. Huntington National Bank grew its holdings in shares of Western Union by 662.7% during the 4th quarter. Huntington National Bank now owns 3,722 shares of the credit services provider’s stock worth $39,000 after purchasing an additional 3,234 shares during the period. Finally, Coppell Advisory Solutions LLC grew its holdings in shares of Western Union by 267.5% during the 4th quarter. Coppell Advisory Solutions LLC now owns 3,833 shares of the credit services provider’s stock worth $41,000 after purchasing an additional 2,790 shares during the period. 91.81% of the stock is owned by institutional investors and hedge funds.

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.