Source: Investing Posted 14/12/2024, 00:10
DENVER – Western Union Corporation (NYSE:WU) (NYSE: WU), a leader in cross-border and inter-currency money transfers and payments, announced today that its board of directors has approved a new $1 billion share buyback program. The company, which is currently valued at $3.63 billion and is trading near a 52-week low of $10.76, appears undervalued.
according to an analysis InvestingPro. The Company also announced a quarterly cash dividend of $0.235 per ordinary share, payable on December 31, 2024, to shareholders registered on December 23, 2024.
Devin McGranahan, President and CEO of Western Union, emphasized the company’s commitment to enhancing shareholder value.
noting that the new buyback declaration and dividend declaration are part of a disciplined approach to return on capital.
The company maintains an impressive dividend yield of 8.62% and has paid dividends consistently for 19 consecutive years, according to InvestingPro data. McGranahan highlighted the flexibility that the buyback program provides in continuing to create shareholder value.
The shares will be repurchased at management’s discretion and may be made through various methods.
including open market transactions, privately negotiated deals, tender offers, or Rule 10b5-1 schemes. Factors such as market conditions, stock price, and legal requirements will affect the timing and size of buybacks. Western Union has not set an end date for the buyback program and reserves the right to discontinue.
modify or terminate it at any time without prior notice.
This press release contains forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995.
which are subject to risks and uncertainties that may cause actual results to materially differ from expectations.
The Company makes no commitment to update such data, which is only valid as of the date of its initial publication. Committed to promoting financial inclusion and prosperity around the world.
Western Union provides services that enable customers and businesses to transfer money and make cross-border and currency payments.
The company trades an attractive price-to-profitability ratio of 5.48, operates in more than 200 countries and regions, supports multiple currencies.
and maintains an extensive network of selling sites. For comprehensive analysis and additional insights, investors can access the detailed research report available on InvestingPro.
which covers this and more than 1,400 other US stocks.
Western Union had a strong quarter in the third quarter of 2024.
with revenue reaching $1.040 billion, reflecting an adjusted revenue growth of 1%. The company’s digital transactions saw a significant increase of 15%, and the consumer money transfer segment saw a 4% rise in transactions.
Despite challenges in Latin America and slowing transactions from the US to Mexico, Western Union strengthens its digital presence through strategic acquisitionsin Singapore and Mexico. RBC Capital Markets recently highlighted a positive trend in the Payments, Processors and IT Services segments, with notable improvements in performance compared to the previous month. It outlined its first five investment ideas for fiscal year 2025, which include Fiserv,SS&C Technologies ,FIS,PayPal and Block.
Western Union remains committed to its “Evolution 2025” strategy, targeting revenue growth from zero to 2% positive by 2025. For 2024, the company reaffirms its forecast for adjusted revenue from $4.15 billion to $4.225 billion and adjusted earnings per share from $1.70 to $1.80. These latest developments underscore the company’s commitment to digital growth and expansion.
