WU stock: buy or sell?

WU stock price: $21.38 -2.37% At close on August 23rd, 2019

Updated on:
August 23rd, 2019

5

After climbing for 4 sessions, Friday Western Union fell a fatal -2.37%, closing at $21.38.

The Western Union Company provides money movement and payment services worldwide. The company operates in three segments: Consumer-to-Consumer, Consumer-to-Business, and Business Solutions.

Should I buy WU stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. That's why is so important to choose your own trading plan that matches with your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

None of our preferred buy setups matches with Western Union stock situation right now, therefore this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean WU will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Western Union stock a buy?

Financial institutions and banks post stock ratings everyday. Unfortunately, we couldn't find any rating for WU stock for the last 30 days.

WU stock analysis

Daily outlook

After climbing for 4 sessions, Friday Western Union fell a fatal -2.37%, closing at $21.38.

On Aug/2, WU hit new all time highs, pushing higher previous ATH of $21.55 recorded . New ATHs are usual entry points for many trading setups as there aren't higher resistences. After climbing for 4 days, Friday Western Union fell a fatal -2.37%, closing at $21.38. Since SMA100d and SMA200d crossed up on May, WU price climbed $2.25 per share (11.76%).

WU stock chart (daily)

Weekly outlook

Shares of Western Union gained a slightly fine 1.38% this week.

Not so far away is the last all-time high Western Union marked late July. Western Union stock is drawing an uptrend with rising tops and bottoms. Now trading in between its last bottom and last top, WU might consolidate in a flat-base, waiting to break out over or down under . Since SMA20d and SMA40w crossed up early May, WU price climbed $2.27 per share (11.88%). Since price and SMA40w lines crossed up by mid March, WU climbed $3.82 (21.75%).

WU stock chart (weekly)

WU stock price history

WU IPO was on October 2nd, 2006 at $14.43 per share1. Since then, WU stock surged a 48.20%, with an average of 4.00% per year. If you had invested right after WU's IPO a $1,000 in WU stock in 2006, it would worth $482.00 today.

1: Adjusted price after possible price splits or reverse-splits.

WU stock historical price chart

WU stock reached all-time highs on Aug 2nd with a price of $22.28.

WU stock price target

How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. You should not follow the analysts' WU stock price predictions in the hope that they will be met as they may be wrong and not met. For the last month we have not found any price forecast for Western Union stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

After posting its last earnings report on February, Western Union . Unfortunately, reported EPS is not yet available in our database.
WU earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a0.33n/a
2017-Q2-n/a0.35n/a
2017-Q32017-11-020.450.5317.8%
2017-Q42018-02-130.450.41-8.9%
2018-Q12018-05-010.420.457.1%
2018-Q22018-08-020.470.46-2.1%
2018-Q32018-11-010.480.528.3%
2018-Q42019-02-070.490.490.0%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

Compared to 2017, last anual sales report draw a slightly good growth of 1.19% to $5,589.90 M USD. When comparing 2018 vs 2017, on the other hand, profit margin (that is, the net income divided by revenues) rocketed a 25.32% to 15.24%.

WU annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$5,540 M-$798 M14.4%-
2014$5,607 M1.21%$852 M15.2%6.76%
2015$5,484 M-2.20%$838 M15.3%-1.71%
2016$5,423 M-1.11%$253 M4.7%-69.78%
2017$5,524 M1.87%$-557.10 M-10.1%-320.02%
2018$5,590 M1.19%$852 M15.2%-252.92%

Quarterly financial results

Western Union reported $1,401.60 M in revenues for 2018-Q4, a 0.99% up compared to previous quarter. Reported quarter earnings marked $212.10 M with a profit margin of 15.13%. Profit margin remained stable a 0.10% compared to previous quarter when profit margin was 15.03%. When comparing turnover to same quarter last year, Western Union sales marked an ugly correction and declined a -2.55%.
WU quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$1,300 M-$162 M12.4%-
2017-Q2$1,380 M6.15%$167 M12.1%2.97%
2017-Q3$1,405 M1.79%$236 M16.8%41.50%
2017-Q4$1,438 M2.39%$-1,121 M-77.9%-575.76%
2018-Q1$1,389 M-3.40%$214 M15.4%-119.06%
2018-Q2$1,411 M1.56%$218 M15.4%1.87%
2018-Q3$1,388 M-1.65%$209 M15.0%-4.14%
2018-Q4$1,402 M0.99%$212 M15.1%1.68%

Western Union ownership

When you are planning to invest in a stock, it's always worth to review its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Western Union, 0.41% of all outstanding shares are owned by its staff.

Bearish positions for WU stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Western Union:

WUFISGPNMAMGI
Market cap$9.2 B$45.7 B$24.8 B$289.2 B$203.0 M
Total shares430.7 M331.0 M157.2 M1,030.0 M56.4 M
Float shares422.1 M610.5 M155.7 M996.6 M30.1 M
  - Institutional holdings (%)105.5%92.3%102.0%78.0%82.9%
  - Insider holdings (%)0.4%0.6%0.7%11.2%5.3%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

WU summary

Friday, August 23rd, 2019
Open$21.80
Close$21.38
Day range$21.32 - $21.90
Previous close$21.90
Session gain-2.37%
Average true range$0.39
50d mov avg$20.69
100d mov avg$19.97
200d mov avg$18.83
Daily pattern
Weekly pattern lt06a

Western Union performance

To better understand Western Union performance you must compare its gains with other related stocks in same sector or industry. In the following table, we compare Western Union performance to Fidelity National Information Services, Global Payments, Mastercard, Moneygram International and WEX:
Stock3m6m12m
WUWestern Union11.53%22.45%18.38%
FISFidelity National...16.53%29.63%28.27%
GPNGlobal Payments2.99%23.73%29.40%
MAMastercard11.78%26.05%34.82%
MGIMoneygram Interna...109.30%36.36%-41.08%
WEX 1.49%13.99%6.16%

Western Union competitors

One check before trading any stock is to have a look a list of its competitors, in this case for Western Union. We selected 5 companies as Western Union competitors as they are in the same industry or have similar market objectives.

Latest WU stock news