Western Union is expanding its digital wallet services in Singapore and Mexico in addition to growing a new advertising business segment. WU recently approved a $1 billion repurchase authorization, with shares at a historically low valuation. Using a dividend discount model for valuation, the stock appears undervalued by 25% to 35%.
In the most recent trading session, Western Union (WU) closed at $11.14, indicating a -0.45% shift from the previous trading day.
A pair of shareholder-pleasing measures announced after market close Friday were powering the stock of Western Union (WU 4.00%) higher on Monday. Focused on news of a hefty share buyback program announced by the company, investors piled into the stock, boosting its price by 4% on the first trading day of the new week.
WU announces a repurchase program and a quarterly cash dividend of 23.5 cents per share, sustaining its solid track record of capital deployment endeavors.
WU's new stores come at an opportune time as it coincides with the holiday season when remittance transactions traditionally increase.
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Western Union (WU) reported earnings 30 days ago. What's next for the stock?
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Western Union has launched a media network business that lets companies advertise to its customers via company-owned channels like its website, mobile app and digital-out-of-home (DOOH) screen network as well as through audience extension.
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Investors were clearly unimpressed by the company's third-quarter performance.
WU's Q3 results benefit from its strong Branded Digital business and a lower expense level, partly offset by reduced Iraq contributions.