A Technical View of the The Western Union Company (WU)

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The Western Union Company (NYSE:WU) saw a downside of -1.05% to close Tuesday at $14.14 after subtracting -$0.15 on the day. The 5-day average trading volume is 3,403,380 shares of the company’s common stock. It has gained $14.33 in the past week and touched a new high 3 times within the past 5 days. An average of 4,330,410 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 4,844,798.

WU’s 1-month performance is 3.06% or $0.31 on its low of $11.41 reached on 01/24/23. The company’s shares have touched a 52-week low of $12.27 and high of $20.40, with the stock’s rally to the 52-week high happening on 01/11/23. YTD, WU has achieved 2.69% or $0.37 and has reached a new high 5 times. However, the current price is down -30.69% from the 52-week high price.


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Insider Transactions

WU stock investors last saw insider trading activity on Nov 07.Cebollero David (Interim Chief Legal Officer) most recently sold 587 shares at $17.40 per share on May 05. This transaction cost the insider $10,214. Interim Chief Legal Officer, Cebollero David, sold 2,221 shares at a price of $19.45 on Feb 23. Then, on Feb 22, President, Global Network Farah Jean Claude sold 33,401 shares at a price of $19.65 per share. This transaction amounted to $656,179.

Valuation Metrics

WU stock has a beta of 0.89. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 1.15 while the price-to-book (PB) in the most recent quarter is 10.32, with the price to cash flow ratio at 11.15.

As well, the company’s long term debt to equity for the quarter ending September 29 was 4.61, while the total debt to equity was 4.94.. In terms of profitability, the gross margin trailing 12 months is 43.00%. The firm’s gross profit as reported stood at $2.17 billion against revenue of $5.07 billion.

Earnings Surprise

For the quarterly period ending September 29 this year, Net income and sales went down compared to those figures reported in the previous quarter. Net income shrunk -33.81% to $173.9 million, while revenue of $194.0 million was -11.56% off the previous quarter. Analysts expected WU to announce $0.42 per share in earnings in its latest quarter, but it posted $0.42, representing a 0.00% surprise. EBITDA for the quarter stood at more than $276.6 million. WU stock balance sheet for the quarter ending September 29 shows that total liabilities totaled 8.37 billion, with total debt at $2.61 billion. Shareholders hold equity totaling $386.17 million.

Let’s look briefly at The Western Union Company (WU) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 24 January was 50.41% to suggest the stock is trending Neutral, with historical volatility in this time period at 21.62%.

The stock’s 5-day moving average is $14.09, reflecting a +0.28% or $0.04 change from its current price. WU is currently trading +3.89% above its 20-day SMA, -6.36% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +11.51% and SMA200 by-25.11%.

Stochastic %K and %D was 60.31% and 45.29% and the average true range (ATR) pointed at 0.60. The RSI (14) points at 51.35%, while the 14-day stochastic is at 80.77% with the period’s ATR at 0.51. The stock’s 9-day MACD Oscillator is pointing at -0.03 and -0.01 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for The Western Union Company (NYSE: WU), UBS downgraded it to a Sell rating. They previously had a Neutral rating on the stock. Analysts offering their rating for WU stock have a consensus rating for the stock as Underweight. Currently, 8 brokerage advisors rate WU as a “sell,”, while 11 advise that investors “Hold.” 1 analysts have rated the stock as underweight. 0 rates the stock as overweight while 1 have offered a “buy” rating.

What is WU’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $10.00 and a high of $18.00, with their median price target at $14.00. Looking at these predictions, the average price target given by analysts is for The Western Union Company (WU) stock is $13.74.

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