Updated Aug 17 at 11:36am ET.
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Western Union is trying to buy International Money Express, a smaller firm that focuses on money transfers to Latin America. The deal just received approval from New York regulators, but California officials are still reviewing it.
This acquisition is part of the company's plan to defend its market share as its traditional cash-transfer business shrinks. While winning over New York is a step forward, California is a massive market for remittances, which are payments sent by workers back to their home countries. The deal cannot close until both states and other regulators sign off, so this delay keeps the company's growth plans on hold for now.
Western Union and the platform Rain have launched Stablecard, a digital wallet and Visa credit card. It allows customers to hold and spend USDPT, which is a stablecoin, a type of digital currency designed to keep a steady value by being tied to the U.S. dollar.
This is a clear move to modernize the business as it fights digital-only rivals. By letting people spend digital dollars anywhere Visa is accepted, Western Union is trying to stay relevant for customers who want to move money across borders without using traditional bank accounts.
Source: Business Wire
Cantor Fitzgerald lowered its price target to $7 following the company's recent quarterly results. A price target is what an analyst thinks the stock will be worth in the future. This adjustment reflects growing caution after the company reported a slowdown in its retail business in the Americas. While the digital side of the business is growing, analysts are concerned it may not be enough to offset the decline in physical cash transfers.
Source: Cantor Fitzgerald
The board of directors declared a quarterly dividend of $0.235 per share. This payment will go to shareholders who own the stock as of September 16, with the cash being sent out on September 30. Maintaining this dividend is a core part of the company's plan to return cash to owners while its traditional retail business faces pressure. At the current stock price, this represents a high yield, though it also reflects the market's concern about the company's long-term growth.
Source: Business Wire
Barclays lowered its price target to $6, which is well below where the stock currently trades. The firm kept its underweight rating, a signal that they expect the stock to perform worse than other companies in the same sector.
This cut highlights the skepticism some analysts have about the company's turnaround. The core problem is that the high-profit retail business is shrinking faster than expected, leaving less cash to fund the transition to digital services.
Source: Barclays
Analysts recently lowered their price targets for Western Union following a flurry of negative updates in late July and early August. Most analysts are neutral or bearish, and the average target of $7 is slightly below the current price.
The company has missed profit expectations in half of its last eight quarters. This choppy track record makes it harder to trust management's forecasts as they try to pivot the business.
| Expectation | |
|---|---|
| EPS | $0.35 |
| Revenue | $1.06B |
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