[Zacks] Western Union Co (NYSE:WU)(TREND ANALYSIS) plunged 6.9% to close at $18.99 in the last trading session, after the news that PayPal will acquire Xoom Corporation XOOM for $890 million became viral.
Though Western Union is a leader with a 15% share of the $586 billion global remittance market and around 500,000 agent locations in approximately 200 countries, the PayPal-Xoom combination would pose serious competitive threats to Western Union’s digital business.
Launched in 2001, Xoom is one of the pioneers in digital money transfer business and PayPal makes the most of its revenues from online purchases. Both these players have a niche presence in the digital money transfer market where Western Union is still developing.
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Western Union Co (NYSE:WU) stock is currently trading 16.86% below its 52-week-high, 23.96% above its 52-week-low. The 1-year stock price history is in the range of $15.32 – $22.84. Western Union Co (WU) has a price to earnings ratio of 11.79 versus Financial sector average of 17.87. WU stock price has outperformed the S&P 500 by 6.7%. The Commercial Services company is currently valued at $9.8 billion and its share price closed the last trading session at $18.99. The stock has a 50-day moving average of $21.54 and a 200-day moving average of $19.78.
Western Union Co (WU) current short interest stands at 69.17 million shares. It has increased by 3% from the same period of last month. Around 14% of the company’s shares, which are float, are short sold. With a 10-days average volume of 6.75 million shares, the number of days required to cover the short positions stand at 10.3 days.
The company is expected to announce next quarter earnings on July 30, at consensus estimate of $0.39. Western Union Co (WU) reported last quarter earnings on April 30. The Commercial Services company announced earnings per share of $0.39 against a consensus Street estimate of $0.38, beating the average estimate by $0.01. This corresponds to an increase of $0.01 compared to the same quarter of the previous fiscal year.
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There are currently twenty-eight analysts that cover Western Union Co stock. Of those twenty-eight, seven have a Buy rating, thirteen have a Hold rating and eight have a Sell rating. On a consensus basis this yields to a Hold rating. The consensus target price stands at $20.1.
A recent analyst activity consisted of Evercore Partners downgrading their Buy rating on July 2. Evercore Partners decreased price target from $23 to $20. This corresponds to a 5.32% upside from the last closing price. On the date of report, the stock closed at $18.99.
CLSA initiated their coverage on the stock with Sell rating on May 20, and fixed their price target at $16. This corresponds to a 15.75% downside from the last closing price. On the date of report, the stock closed at $22.32.
Another research firm was Wells Fargo who upgraded their Market Perform rating to Outperform on May 1. On the date of report, the stock closed at $21.1.
The Western Union Company offers global money transfer services. The Company offers consumer to consumer money transfer and bill paying services, and sells money orders.