Franklin Resources Inc. Increases Position in The Western Union Company (NYSE:WU)

Franklin Resources Inc. grew its holdings in The Western Union Company (NYSE:WU) by 3.2% during the fourth quarter, HoldingsChannel reports. The firm owned 1,138,828 shares of the credit services provider’s stock after acquiring an additional 35,532 shares during the period. Franklin Resources Inc.’s holdings in Western Union were worth $12,072,000 at the end of the most recent reporting period.

A number of other large investors have also made changes to their positions in WU. R Squared Ltd purchased a new position in Western Union during the fourth quarter worth about $25,000. Independence Bank of Kentucky purchased a new stake in shares of Western Union during the 4th quarter valued at approximately $28,000. Wilmington Savings Fund Society FSB lifted its holdings in Western Union by 1,734.7% in the fourth quarter. Wilmington Savings Fund Society FSB now owns 4,862 shares of the credit services provider’s stock valued at $52,000 after acquiring an additional 4,597 shares during the last quarter. Sound Income Strategies LLC purchased a new position in Western Union in the fourth quarter worth approximately $53,000. Finally, AlphaMark Advisors LLC increased its stake in Western Union by 329.4% during the fourth quarter. AlphaMark Advisors LLC now owns 5,153 shares of the credit services provider’s stock worth $55,000 after acquiring an additional 3,953 shares during the last quarter. 91.81% of the stock is currently owned by hedge funds and other institutional investors.

Western Union Trading Down 5.9 %

WU opened at $9.12 on Wednesday. The business has a fifty day moving average price of $10.58 and a 200 day moving average price of $10.84. The company has a debt-to-equity ratio of 3.04, a current ratio of 1.20 and a quick ratio of 1.10. The Western Union Company has a 12 month low of $9.00 and a 12 month high of $13.93. The stock has a market capitalization of $3.05 billion, a price-to-earnings ratio of 3.34, a PEG ratio of 1.32 and a beta of 0.69.

Western Union (NYSE:WU) last issued its earnings results on Tuesday, February 4th. The credit services provider reported $0.40 earnings per share 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%. Sell-side analysts expect that The Western Union Company will post 1.79 earnings per share for the current fiscal year.

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

Western Union Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, March 31st. Investors of record on Monday, March 17th were issued a $0.235 dividend. This represents a $0.94 annualized dividend and a yield of 10.31%. The ex-dividend date of this dividend was Monday, March 17th. Western Union’s dividend payout ratio (DPR) is presently 34.43%.

Analyst Ratings Changes

Several brokerages have recently commented on WU. Royal Bank of Canada reaffirmed a “sector perform” rating and issued a $14.00 price target on shares of Western Union in a research note on Thursday, April 3rd. Susquehanna decreased their target price on shares of Western Union from $13.00 to $12.00 and set a “neutral” rating on the stock in a research report on Wednesday, February 5th. Morgan Stanley dropped their price target on shares of Western Union from $10.00 to $9.00 and set an “underweight” rating for the company in a research report on Wednesday, February 5th. JMP Securities restated a “market perform” rating on shares of Western Union in a report on Thursday, February 6th. Finally, Barclays dropped their target price on shares of Western Union from $11.00 to $10.00 and set an “underweight” rating for the company in a report on Friday, December 13th. Three analysts have rated the stock with a sell rating and eight have given a hold rating to the company. According to data from MarketBeat, Western Union has an average rating of “Hold” and a consensus price target of $12.11.

Western Union Profile

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.