WU stock: buy or sell?

WU stock price: $27.35 1.00% At close on November 19th, 2019

Updated on:
November 19th, 2019

4

Western Union closed today at $27.35 and inched a tiny 1.00%.

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?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Following a trading plan helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, Western Union stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Western Union stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we collected 3 ratings published for WU stock in the last month.

Is WU a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-30Barclaysn/aUnderweight
2019-9-27GuggenheimNeutralBuy
2019-9-25BTIG Researchn/aBuy

WU stock analysis

Daily outlook

Western Union shares inched 1.00% to $27.35 today.

Western Union ended today at $27.35 and inched a tiny 1.00%. From a daily outlook perspective, WU is drawing an uptrend of rising tops and rising bottoms. Since its last top on Nov/7 at $28.00, price slid and bounced up back from $26.18. Breaking down under $26.18 would cancel the current uptrend and it might slide further to test lower supports. Note that $28.00 might act as a resistance line. Trading the long side, we should wait to a new breakout over $28.00 to find the next buy point. On November 7th, WU hit a new all time high, pushing higher than on November/6 tops. Check different trading setups that use ATHs as triggers.

WU stock chart (daily)

Weekly outlook

Western Union shares stepped up 2.05% this week, ending at $27.35. Late October WU skyrocketed an extraordinary 6.27% in just one week.

Western Union stock is trading in the range of its last top and last bottom. Loosing would mean breaking the current uptrend. Breakdowns under last bottom are selling point signals for some trading strategies. Not so far away is the last price record Western Union marked early November. Early May, SMA20w and SMA40w crossed up triggering a rise of 44.33%. Since mid March when WU stock price broke up the SMA40w line, it gained $9.94 (57.09%).

WU stock chart (weekly)

WU stock price history

WU IPO was on October 2nd, 2006 at $14.30 per share1. Since then, WU stock grew a 91.30%, with a yearly average of 7.00%. If you had invested $1,000 in WU stock in 2006, it would worth $913.00 today.

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

WU stock historical price chart

WU stock reached all-time highs on Nov 7th with a price of $28.00.

WU stock price target is $24.70

How much a stock will be priced tomorrow or next week is quite unpredictable However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. We found 3 price forecasts for Western Union stock released in the last 30 days:
WU stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-30BarclaysRaises Target$18.00$19.005.6%
2019-9-27GuggenheimUpgradesn/a$27.00-
2019-9-25BTIG ResearchRaises Targetn/a$28.00-
(in average)$18.00$24.7037.0%
Moving in a range from $28.00 and $19.00, the price forecast for Western Union stock is $24.70. In average, analysts' outlook on WU price forecast is positive, upgrading the prediction by a 37.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

After publishing its last earnings report on February, Western Union . As soon as we get its actual EPS from the earnings report, we will update this report.
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 turnover report draw a slightly fine increase of 1.19% to $5,589.90 M dollars. However, its earnings margin (compared to revenues) climbed to 15.24%, that is $851.90 million.

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 posted $1,401.60 M in sales for 2018-Q4, a 0.99% up compared to previous quarter. Reported quarter income 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 sales to same quarter last year, Western Union sales marked a disappointing loss and decreased 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 buy shares of a stock, it's always worth to have a look 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.

For a better context understanding, the following table shows ownership data compared to other related companies:

WUFISGPNMAMGI
Market cap$11.5 B$84.2 B$54.6 B$280.1 B$181.8 M
Total shares419.3 M614.6 M300.6 M997.5 M62.1 M
Float shares417.4 M611.6 M298.5 M991.1 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

Tuesday, November 19th, 2019
Open$27.12
Close$27.35
Day range$27.14 - $27.49
Previous close$27.08
Session gain1.00%
Average true range$0.64
50d mov avg$24.45
100d mov avg$22.75
200d mov avg$20.68
Daily patternlb03a
Weekly pattern lt06a

Western Union performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We compared Western Union against Fidelity National Information Services, Global Payments, Mastercard, Moneygram International and WEX in the following table:
Stock3m6m12m
WUWestern Union29.01%43.87%54.17%
FISFidelity National...2.18%16.06%34.29%
GPNGlobal Payments15.01%18.45%76.26%
MAMastercard3.42%11.95%54.67%
MGIMoneygram Interna...-21.24%70.35%37.56%
WEX -0.49%0.87%31.63%

Western Union competitors

We picked a few stocks to conform a list of Western Union competitors to examine if you are interested in investing in WU:

Latest WU stock news