The Western Union Company (NYSE:WU) has a beta of 1.02, a 12-month trailing P/E ratio of 13.07, and a growth ratio of 1.42. The stock’s Relative Strength Index (RSI) is 37.55, with weekly volatility at 2.10% and ATR at 0.50. The WU stock’s 52-week price range has touched low of $19.07 and a $26.61 high. Its shares traded higher over the last trading session, gaining 1.68% on 06/21/21. The shares fell to a low of $23.33 before closing at $23.64. Intraday shares traded counted 2.76 million, which was 37.79% higher than its 30-day average trading volume of 4.43M. WU’s previous close was $23.25 while the outstanding shares total 411.70M.
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 $9.75 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 5.14 billion total, with 5.08 billion as their total liabilities.
WU were able to record 157.2 million as free cash flow during the 08/05/2021 quarter of the year, this saw their quarterly net cash flow reduce by 69.2 million. In cash movements, the company had a total of 175.8 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 08/05/2021 quarter of the year, The Western Union Company recorded a total of 1.21 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 1.65% coming in sequential stages and their sales for the 08/05/2021 quarter reducing by -5.11%.
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 706.0 million trying to sell their products during the last quarter, with the result yielding a gross income of 504.0 million. This allows shareholders to hold on to 411.70M with the recently reported earning now reading 0.44 cents per share. This is a figure that compared to analyst’s prediction for their 08/05/2021 (0.44 cents a share).
Having a look at the company’s valuation, the company is expected to record 2.28 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, CFO, Agrawal Rajesh K. sold 2,129 shares of the company’s stock in a transaction that recorded on May 18. The sale was performed at an average price of 25.00, for a total value of 53,225. As the sale deal closes, the CFO, Agrawal Rajesh K. now sold 109,510 shares of the company’s stock, valued at 2,732,070. Also, Chief Legal Officer/Secretary, Tsai Caroline sold 7,164 shares of the company’s stock in a deal that was recorded on Mar 18. The shares were price at an average price of 24.85 per share, with a total market value of 178,025. Following this completion of acquisition, the Chief Transformation Officer, Molnar Jacqueline D now holds 1,003 shares of the company’s stock, valued at 24,744. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.80%.
4 out of 23 analysts covering the stock have rated it a Buy, while 14 have maintained a Hold recommendation on The Western Union Company. 5 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 $26.12.