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Western Union (NYSE:WU) stock has reached a 52-week low, hitting a price of 8.39 USD. According to InvestingPro analysis, the stock appears undervalued at current levels, with a P/E ratio of just 3.14 and an attractive dividend yield of 11.14%. This marks a significant point for the company, as it reflects a downturn in its market performance over the past year. The stock’s 1-year change indicates a decline of 31.85%, highlighting the challenges the company has faced in maintaining its market value. Despite these challenges, InvestingPro data shows the company has maintained dividend payments for 20 consecutive years, with a FAIR overall financial health score. This low point comes amid broader market fluctuations and may prompt investors to reassess their positions in the financial services company. For deeper insights, access the comprehensive Pro Research Report available on InvestingPro, covering what really matters for smarter investment decisions.
In other recent news, Western Union Co. reported its first-quarter earnings for 2025, revealing an earnings per share (EPS) of $0.41, which met analysts’ expectations. However, the company’s revenue of $984 million fell short of the projected $999.8 million. The company has reaffirmed its financial guidance for the year, anticipating revenue growth partly due to the recent acquisition of EuroChange, which is expected to add approximately one percentage point to revenue. Goldman Sachs has adjusted its outlook on Western Union, lowering the stock price target from $11.00 to $10.00 while maintaining a Sell rating, citing ongoing revenue challenges and the global shift towards digital remittances.
JMP analysts maintained a Market Perform rating on Western Union, noting that the company achieved an Adjusted EPS of $0.41, slightly surpassing JMP’s estimate of $0.37 due to a lower tax rate. Despite growth in its digital platform, JMP highlighted limited organic growth prospects and EPS growth potential. Western Union’s operational efficiency program yielded $30 million in savings for the quarter, contributing to a 50% year-over-year increase in operating cash flow. The company’s guidance for 2025 includes adjusted revenue between $4.115 billion and $4.215 billion, with expectations of gradual improvement throughout the year.
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