The Western Union Company (NYSE:WU) Relative Strength Index (RSI) is 49.35, with weekly volatility at 2.00% and ATR at 0.61. The WU stock’s 52-week price range has touched low of $17.39 and a $28.44 high. Intraday shares traded counted 7.12 million, which was -79.9% lower than its 30-day average trading volume of 3.96M. Its shares traded lower over the last trading session, losing -1.05% on 12/04/20. The shares fell to a low of $21.66 before closing at $21.70. WU’s previous close was $21.93 while the outstanding shares total 411.60M. The firm has a beta of 0.99, a 12-month trailing P/E ratio of 12.89, and a growth ratio of 1.54.
Investors have identified the Credit Services company The Western Union Company as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $9.02 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
The Western Union Company (WU) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 4840800000 million total, with 4973100000 million as their total liabilities.
WU were able to record 531.0 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by -192.9 million. In cash movements, the company had a total of 585.6 million as operating cash flow.
Potential earnings growth for The Western Union Company (WU)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, The Western Union Company recorded a total of 1.26 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -3.85% coming in sequential stages and their sales for the third quarter increasing by 11.43%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 721.7 million trying to sell their products during the last quarter, with the result yielding a gross income of 536.8 million. This allows shareholders to hold on to 411.60M with the revenue now reading 0.56 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.47 cents a share).
Having a look at the company’s valuation, the company is expected to record 1.73 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on WU sounds very interesting.
Is the stock of WU attractive?
In related news, Chief Trans Off. & Glbl Compl., Molnar Jacqueline D sold 2,928 shares of the company’s stock in a transaction that recorded on Jun 10. The sale was performed at an average price of 23.94, for a total value of 70,096. As the sale deal closes, the Chief Trans Off. & Glbl Compl., Molnar Jacqueline D now sold 969 shares of the company’s stock, valued at 22,287. Also, Chief Trans Off. & Glbl Compl., Molnar Jacqueline D sold 2,075 shares of the company’s stock in a deal that was recorded on Feb 26. The shares were price at an average price of 24.15 per share, with a total market value of 50,111. Following this completion of acquisition, the Chief Trans Off. & Glbl Compl., Molnar Jacqueline D now holds 9,067 shares of the company’s stock, valued at 228,488. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.10%.
3 out of 22 analysts covering the stock have rated it a Buy, while 13 have maintained a Hold recommendation on The Western Union Company. 6 analysts has assigned a Sell rating on the WU stock. The 12-month mean consensus price target for the company’s shares has been set at $23.59.