Western Union Intrinsic Value – Van ECK Associates Corp increases stake in The Western Union Company by 13.8% in third quarter

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The Western Union ($NYSE:WU) Company is a global leader in money transfer services, providing individuals and businesses with a secure and convenient way to send and receive funds across borders. As a publicly traded company, Western Union’s stock is subject to regular disclosures of its shareholders’ ownership through the filing of 13F reports. These filings provide valuable insights into the ownership changes of the company’s stock by major institutional investors. One such recent filing was made by Van ECK Associates Corp, which revealed a significant increase in their stake in Western Union during the third quarter. This means that the investment management firm now owns a larger percentage of Western Union’s outstanding shares, making them one of the top institutional shareholders of the company. This increase in stake indicates a growing confidence in Western Union’s business and potential for future growth.

The timing of this increase in ownership is also noteworthy, as it comes at a time when Western Union has been making strategic moves to adapt to the changing landscape of money transfer services. The company has been investing in digital platforms and expanding its partnerships to reach new markets and customers. This move by Van ECK Associates Corp could be seen as a vote of confidence in these initiatives and their potential to drive growth for Western Union. As Western Union continues to evolve and innovate in the money transfer industry, it will be interesting to see how its shareholders respond and whether this trend of increased ownership will continue.

Analysis – Western Union Intrinsic Value

As an investment analysis firm, GoodWhale has taken a close look at the financials of WESTERN UNION. After thorough analysis, we have determined that the fair value of the company’s share is approximately $15.2. This valuation has been calculated using our proprietary Valuation Line, which takes into account various financial metrics and market conditions. Currently, the stock of WESTERN UNION is being traded at $10.7, which indicates an undervaluation of 29.4%. This means that the stock has the potential to provide a good return on investment for shareholders. With a fair value significantly higher than the current market price, purchasing WESTERN UNION stock at this time could present a valuable opportunity for investors. When looking at the company’s financials, we have observed positive trends in key metrics such as revenue and earnings. Moreover, WESTERN UNION has a strong market presence and a solid reputation as a leader in the global money transfer industry. This provides stability and confidence in the company’s future growth potential. Additionally, the company has been actively pursuing technological advancements and expanding its digital services, which could further drive its growth in the future. This can be seen as a strategic move to stay competitive in an increasingly digital world. In conclusion, GoodWhale believes that WESTERN UNION is currently undervalued and has the potential to deliver strong returns for investors. With its strong financials, market position, and focus on innovation, we see WESTERN UNION as a promising investment opportunity. More…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Western Union. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Western Union. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Western Union. More…

Key Ratios Snapshot

Some of the financial key ratios for Western Union are shown below. More…

Peers

It has a wide network of agents and locations around the world. Western Union has several competitors, including American Express Co, Mastercard Inc, and PayPal Holdings Inc.

– American Express Co ($NYSE:AXP)

American Express is a financial services company that provides charge and credit cards, rewards programs, travel services, and more. The company has a market cap of 106.78B as of 2022. American Express was founded in 1850 and is headquartered in New York City, New York.

– Mastercard Inc ($NYSE:MA)

Mastercard Incorporated is an American multinational financial services corporation headquartered in Purchase, New York, United States. The company’s core products are credit, debit, prepaid, and commercial payment cards, issued to consumers and businesses worldwide. Mastercard also processed approximately $3.4 trillion in payments in 2019.

The company has a market cap of $286.32B as of 2022 and a Return on Equity of 110.3%. Mastercard is a publicly traded company with its shares listed on the New York Stock Exchange (NYSE).

– PayPal Holdings Inc ($NASDAQ:PYPL)

PayPal Holdings Inc is a US-based company that operates a worldwide online payments system that supports online money transfers and serves as an electronic alternative to traditional paper methods like checks and money orders. The company has a market cap of 98.05B as of 2022 and a Return on Equity of 11.16%. PayPal is one of the largest online payment processors in the world and handles over 9 million transactions every day.

Summary

Van ECK Associates Corp increased their ownership of The Western Union Company by 13.8% during the third quarter. This suggests that the investment firm has confidence in the company’s performance and potential for growth. This could be due to positive market trends, financial stability, and strong management.

Additionally, other investors may take note of this increase and view it as a positive sign, potentially leading to further investment in the company. Overall, this could indicate that The Western Union Company is a promising investment opportunity and may be worth considering for those looking to invest in the financial sector.