The Western Union Company (NYSE: WU) stock fell -1.27% on Thursday to $11.64 against a previous-day closing price of $11.79. With 4.02 million shares changed hands, the volume of the stock remained lighter than its average volume of 9.4 million shares. During the session, the Credit Services company that operates in wider Financial sector, reached to the highest price of $11.82 whereas the lowest price it dropped to was $11.53. The 52-week range on WU shows that it touched its highest point at $18.23 and its lowest point at $10.07 during that stretch. It currently has a 1-year price target of $12.21. With its current market cap of 4.44 billion, WU has annualized dividend of $0.94 while the current yield stands at 8.08%. Beta for the stock currently stands at 0.85.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of WU was down-trending over the past week, with a drop of -6.51%, but this was up by 9.30% over a month. Three-month performance dropped to -11.08% while six-month performance fell -17.56%. The stock lost -32.95% in the past year, while it has lost -15.47% so far this year. A look at the trailing 12-month EPS for WU yields 2.00 with Next year EPS estimates of 1.67. For the next quarter, that number is 0.39. This implies an EPS growth rate of 19.00% for this year and 2.83% for next year. EPS is expected to grow by 0.32% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 32.20%.
Float and Shares Shorts:
At present, 374.40 million WU shares are outstanding with a float of 370.55 million shares on hand for trading. On Apr 27, 2023, short shares totaled 21.14 million, which was 5.64% higher than short shares on Mar 30, 2023. In addition to Mr. Devin B. McGranahan as the firm’s Pres, CEO & Director, Mr. Matthew Cagwin serves as its Chief Financial Officer.
Through their ownership of 103.76% of WU’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 56.87% of WU, in contrast to 40.24% held by mutual funds. Shares owned by individuals account for 2.02%. As the largest shareholder in WU with 11.27% of the stake, The Vanguard Group, Inc. holds 42,106,668 shares worth 42,106,668. A second-largest stockholder of WU, BlackRock Fund Advisors, holds 37,152,545 shares, controlling over 9.94% of the firm’s shares. Capital Research & Management Co is the third largest shareholder in WU, holding 19,117,930 shares or 5.12% stake. With a 3.12% stake in WU, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 11,656,692 shares are owned by the mutual fund manager. The American Mutual Fund, which owns about 3.04% of WU stock, is the second-largest Mutual Fund holder. It holds 11,373,261 shares valued at 124.31 million. Vanguard Small Cap Index Fund holds 2.62% of the stake in WU, owning 9,775,137 shares worth 106.84 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, WU reported revenue of $1.14B and operating income of $264.00M. The EBITDA in the recently reported quarter was $306.90M and diluted EPS was $0.50.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for WU since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With WU analysts setting a high price target of $18.00 and a low target of $10.00, the average target price over the next 12 months is $12.19. Based on these targets, WU could surge 54.64% to reach the target high and fall by -14.09% to reach the target low. Reaching the average price target will result in a growth of 4.73% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded WU stock several times over the past three months with 0 Buys and 1 Sells. In these transactions, 0 shares were bought while 2,025 shares were sold. The number of buy transactions has increased to 23 while that of sell transactions has risen to 21 over the past year. The total number of shares bought during that period was 606,315 while 200,995 shares were sold.