The Western Union Company Earns “Neutral” Rating from Zacks (WU)
The Western Union Company (NYSE:WU)‘s stock had its “neutral” rating restated by Zacks in a report issued on Tuesday. They currently have a $18.00 price target on the stock. Zacks‘s price objective indicates a potential upside of 2.97% from the company’s current price.
Zacks’ analyst wrote, “Western Union reported second-quarter earnings of $0.36 per share, which were in line with the Zacks Consensus Estimate as well as the year-ago quarter earnings. Though higher expenses overshadowed the revenue improvement, a lower share count mitigated the downside. We are optimistic about the company’s long-term growth momentum led by strategic investments in new products, services and technology. However, rapid growth of other cheaper money transfer options may lead to competitive pressure. The company is focusing on three areas -expansion of the existing network by retaining and adding new customers to the consumer money transfer business creation of a digital infrastructure to drive its electronic channels business and development of the business-to-business segment. However, the company is facing compliance-related issues and heightened competition which will weigh upon its profitability in the near term. We thus maintain our Neutral recommendation on the stock. “
The Western Union Company (NYSE:WU) traded up 0.40% on Tuesday, hitting $17.55. 1,768,286 shares of the company’s stock traded hands. The Western Union Company has a 1-year low of $14.60 and a 1-year high of $19.50. The stock’s 50-day moving average is $17.39 and its 200-day moving average is $16.54. The company has a market cap of $9.297 billion and a price-to-earnings ratio of 12.23.
The Western Union Company (NYSE:WU) last released its earnings data on Thursday, July 31st. The company reported $0.36 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.36. The company had revenue of $1.41 billion for the quarter, compared to the consensus estimate of $1.42 billion. During the same quarter in the previous year, the company posted $0.36 earnings per share. The company’s revenue for the quarter was up 1.4% on a year-over-year basis. On average, analysts predict that The Western Union Company will post $1.47 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Tuesday, September 30th. Investors of record on Monday, September 15th will be given a dividend of $0.125 per share. This represents a $0.50 dividend on an annualized basis and a yield of 2.86%. The ex-dividend date of this dividend is Thursday, September 11th.
A number of other firms have also recently commented on WU. Analysts at Jefferies Group reiterated a “hold” rating on shares of The Western Union Company in a research note on Thursday, August 7th. They now have a $17.00 price target on the stock, up previously from $16.00. Separately, analysts at Barclays reiterated an “underweight” rating on shares of The Western Union Company in a research note on Friday, August 1st. They now have a $18.00 price target on the stock, up previously from $17.00. Finally, analysts at JPMorgan Chase & Co. reiterated an “underweight” rating on shares of The Western Union Company in a research note on Tuesday, July 29th. They now have a $18.00 price target on the stock, up previously from $17.00. Six equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating and eight have given a buy rating to the company’s stock. The Western Union Company currently has an average rating of “Hold” and a consensus target price of $18.21.
The Western Union Company (NYSE:WU) is engaged in money movement and payment services.
To view Zacks’ full report, visit Zacks’ official website.
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