DENVER - The Western Union Company (NYSE: NYSE:WU), a leader in cross-border, cross-currency money movement and payments, announced today that its Board of Directors has approved a new $1 billion stock repurchase program. The company, currently valued at $3.63 billion and trading near its 52-week low at $10.76, appears undervalued according to InvestingPro analysis. The company also declared a quarterly cash dividend of $0.235 per common share, payable on December 31, 2024, to shareholders of record as of December 23, 2024.
Devin McGranahan, President and Chief Executive Officer of Western Union, emphasized the company's commitment to shareholder value, stating that the new repurchase authorization and the dividend declaration are part of a disciplined approach to capital return. The company maintains an impressive 8.62% dividend yield and has consistently paid dividends for 19 consecutive years, according to InvestingPro data. McGranahan highlighted the flexibility the repurchase program provides in continuing to deliver shareholder value.
The repurchase of shares will be conducted at the discretion of management and may occur through various methods, including open-market transactions, privately negotiated deals, tender offers, or Rule 10b5-1 plans. Factors such as market conditions, share price, and legal requirements will influence the timing and volume of repurchases. Western Union has not set an expiration date for the repurchase program and retains the right to halt, adjust, or discontinue it at any time without prior notification.
This press release includes forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties that could cause actual results to differ materially from expectations. The company does not undertake any obligation to update these statements, which are valid only as of their initial publication date.
The Western Union Company is dedicated to fostering financial inclusion and prosperity worldwide, offering services that enable customers and businesses to transfer money and make payments across borders and currencies. Trading at an attractive P/E ratio of 5.48, the company operates in over 200 countries and territories, supporting multiple currencies, and maintains an extensive network of retail locations. For comprehensive analysis and additional insights, investors can access the detailed Pro Research Report available on InvestingPro, which covers this and over 1,400 other US equities.
This news article is based on a press release statement from The Western Union Company.
In other recent news, Western Union Co. delivered a strong third quarter in 2024, with revenues hitting $1.040 billion, reflecting a 1% adjusted revenue growth. The company's digital transactions experienced a substantial 15% increase, and the Consumer Money Transfer segment saw a 4% rise in transactions. Despite challenges in Latin America and a slowdown in U.S. to Mexico transactions, Western Union is boosting its digital presence through strategic acquisitions in Singapore and Mexico.
RBC (TSX:RY) Capital Markets recently highlighted a positive trend in the Payments, Processors & IT Services sectors, with notable improvements in performance compared to the previous month. They identified their top five investment ideas for the fiscal year 2025, which include Fiserv (NYSE:FI), SS&C Technologies, FIS, PayPal (NASDAQ:PYPL), and Block.
Western Union remains committed to its Evolve 2025 strategy, targeting a flat to positive 2% revenue growth by 2025. For 2024, the company reaffirms its adjusted revenue outlook of $4.15 billion to $4.225 billion and adjusted EPS of $1.70 to $1.80. These recent developments underscore the company's commitment to growth and digital expansion.
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