The Western Union Company (WU): What’s the Story?

The Western Union Company (WU) is an interesting player in the Financial space, with a focus on Credit Services. The stock has been active on the tape, currently trading at $20.37, up from yesterday’s close by 1.19%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

The Western Union Company (WU) currently trades with a market capitalization of $9.37 Billion. That value represents a market adjusting for revenues that have been growing by 4.86 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $666.7 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.42 on a per share basis this quarter. Perhaps, that suggests something about why 0.82% of the outstanding share supply is held by institutional investors.

Technical Analysis

It’s important to check the technicals to get a sense of how WU has been acting. Looking at the stock’s movement on the chart, The Western Union Company recorded a 52-week high of $22.21. It is now trading 1.84% off that level. The stock is trading $20.18 its 50-day moving average by -0.19%. The stock carved out a 52-week low down at $18.39.

In recent action, The Western Union Company (WU) has made a move of +3.03% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 16.68, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 9.69% with $457.74 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of WU.

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