In a move to stay current with Delaware law and best practices, Western Union Co. (NYSE:WU), a $3.78 billion market cap company trading at an attractive P/E ratio of 5.7, has announced immediate amendments to its by-laws.
The changes, which were adopted by the Board of Directors on Thursday, include updates to align with recent legal developments and revise advance notice provisions for shareholder proposals and director nominations. According to InvestingPro analysis, the company maintains a GOOD financial health score, suggesting strong corporate governance practices.
The revised by-laws reduce the disclosure obligations for shareholders who nominate directors or propose other business, aiming to simplify the process. Additionally, the amendments incorporate various technical and clarifying adjustments that do not alter the substance of the by-laws. Notably, Western Union has maintained dividend payments for 19 consecutive years, currently offering an impressive 8.4% dividend yield to shareholders.
The company, headquartered in Denver, Colorado, is recognized for its services in the business sector, specifically within the business services industry. For deeper insights into Western Union's valuation and performance metrics, including additional ProTips and comprehensive analysis, visit InvestingPro, where you'll find detailed research reports covering what really matters about this currently undervalued stock.
In other recent news, Western Union has approved a new $1 billion stock repurchase program, furthering its commitment to shareholder value. The company also declared a quarterly cash dividend of $0.235 per common share. Western Union recently reported a solid third quarter in 2024, with revenues hitting $1.040 billion, marking a 1% adjusted revenue growth.
The company's digital transactions saw a significant increase of 15%, and the Consumer Money Transfer segment experienced a 4% rise in transactions. Amid challenges in Latin America, Western Union is enhancing its digital presence through strategic acquisitions in Singapore and Mexico.
RBC (TSX:RY) Capital Markets highlighted a positive trend in the Payments, Processors & IT Services sectors, with Western Union among the companies showing notable improvements. Western Union is progressing well with 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.
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