Western Union (NYSE:WU) Announces Earnings Results, Beats Expectations By $0.04 EPS

Western Union (NYSE:WU) released its quarterly earnings results on Thursday. The credit services provider reported $0.47 earnings per share for the quarter, beating analysts’ consensus estimates of $0.43 by $0.04, Zacks reports. Western Union had a return on equity of 66.11% and a net margin of 21.83%.The firm had revenue of $1.03 billion during the quarter, compared to analysts’ expectations of $1.03 billion. During the same period last year, the firm posted $0.46 EPS. The business’s revenue was down .3% on a year-over-year basis. Western Union updated its FY 2025 guidance to 1.650-1.750 EPS.

Western Union Price Performance

WU stock opened at $8.16 on Friday. The stock has a market cap of $2.64 billion, a PE ratio of 3.09, a price-to-earnings-growth ratio of 2.78 and a beta of 0.61. The stock has a 50-day moving average price of $8.31 and a two-hundred day moving average price of $8.80. Western Union has a 1 year low of $7.85 and a 1 year high of $11.94. The company has a current ratio of 1.15, a quick ratio of 1.15 and a debt-to-equity ratio of 3.11.

Western Union Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 30th. Investors of record on Tuesday, September 16th were paid a $0.235 dividend. The ex-dividend date of this dividend was Tuesday, September 16th. This represents a $0.94 dividend on an annualized basis and a yield of 11.5%. Western Union’s dividend payout ratio is presently 35.61%.

Insider Activity at Western Union

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

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the stock. Caxton Associates LLP bought a new stake in shares of Western Union during the 2nd quarter worth approximately $253,000. CANADA LIFE ASSURANCE Co lifted its stake in Western Union by 1.1% in the second quarter. CANADA LIFE ASSURANCE Co now owns 292,541 shares of the credit services provider’s stock valued at $2,466,000 after acquiring an additional 3,140 shares during the last quarter. Corient Private Wealth LLC lifted its stake in Western Union by 11.4% in the second quarter. Corient Private Wealth LLC now owns 45,548 shares of the credit services provider’s stock valued at $383,000 after acquiring an additional 4,645 shares during the last quarter. Optimist Retirement Group LLC grew its position in shares of Western Union by 955.1% in the 2nd quarter. Optimist Retirement Group LLC now owns 228,290 shares of the credit services provider’s stock valued at $1,922,000 after acquiring an additional 206,654 shares during the period. Finally, Two Sigma Securities LLC increased its stake in shares of Western Union by 54.5% during the 2nd quarter. Two Sigma Securities LLC now owns 47,419 shares of the credit services provider’s stock worth $399,000 after purchasing an additional 16,729 shares during the last quarter. Institutional investors and hedge funds own 91.81% of the company’s stock.

Analyst Ratings Changes

A number of research analysts recently issued reports on WU shares. Susquehanna cut their price target on Western Union from $11.00 to $9.00 and set a “neutral” rating for the company in a report on Tuesday, July 29th. Weiss Ratings raised shares of Western Union from a “sell (d+)” rating to a “hold (c-)” rating in a report on Wednesday, October 8th. Barclays set a $8.00 price objective on Western Union and gave the stock an “underweight” rating in a report on Thursday, July 31st. Zacks Research upgraded Western Union from a “strong sell” rating to a “hold” rating in a research report on Tuesday, October 7th. Finally, Citigroup raised Western Union to a “hold” rating in a report on Thursday. Ten analysts have rated the stock with a Hold rating and four have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Reduce” and an average target price of $8.55.

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.