Why One Investor Is Betting $30 Million on Western Union Despite 16% Stock Slide
Key Points
London-based Brickwood Asset Management added 450,428 shares of The Western Union Company in the third quarter.
The transaction—worth about $2.2 million—equates to approximately 2.6% of 13F reportable assets under management at quarter-end.
In total, Brickwood holds 3.8 million shares valued at $30.4 million.
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London-based Brickwood Asset Management increased its stake in The Western Union Company (NYSE:WU) by 450,428 shares in the third quarter for an estimated $2.2 million, according to an SEC filing on Monday.
What Happened
According to a filing with the U.S. Securities and Exchange Commission released on Monday, Brickwood Asset Management increased its position in The Western Union Company (NYSE:WU) by 450,428 shares in the third quarter, bringing its total ownership to about 3.8 million shares valued at $30.4 million as of September 30.
What Else to Know
Top five holdings after the filing:
- NYSE:B: $38.8 million (27.2% of AUM)
- NYSE:WU: $30.4 million (21.3% of AUM)
- NYSE:MAN: $27 million (18.9% of AUM)
- NYSE:NVST: $24.9 million (17.4% of AUM)
- NASDAQ:XRAY: $19.3 million (13.5% of AUM)
Shares of Western Union have fallen about 16% over the past year—far underperforming the S&P 500, which is up about 14% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Price (as of Tuesday) | $8.95 |
| Market Capitalization | $2.8 billion |
| Revenue (TTM) | $4.1 billion |
| Net Income (TTM) | $770.9 million |
Company Snapshot
The Western Union Company is a leading provider of cross-border money movement and payment solutions, operating at scale with a global agent network and digital channels. Its strategy centers on facilitating secure, fast, and convenient financial transactions for both consumers and businesses. Western Union generates revenue primarily from transaction fees and foreign exchange spreads on consumer-to-consumer and business payments, and its main customers include individuals sending remittances and small to medium-sized enterprises requiring international payments. The company's competitive edge lies in its extensive geographic reach and established brand in the global remittance market.
Foolish Take
Brickwood Asset Management’s move to boost its position in Western Union underscores a classic value play from the London-based fund. The purchase brings Western Union to 21.3% of Brickwood’s portfolio, second only to Barrick Gold, which is again consistent with the firm’s disciplined value strategy.
News of the investment follows Western Union’s third-quarter earnings beat, which has helped send shares up nearly 10% since late October despite a 16% year-over-year decline. The company reported $1 billion in revenue and delivered $0.43 in earnings per share, exceeding consensus estimates. Consumer services and branded digital businesses led growth that helped offset a slowdown in the firm's North America retail business.
For long-term investors, the move reinforces confidence in Western Union’s durability as a cash-generating incumbent in cross-border payments. Plus, its nearly 10.6% dividend yield should appeal to patient, income-oriented investors seeking stability in a volatile macro environment—even if competition from fintech challengers remains a key risk.
Glossary
Stake: The ownership interest or amount of shares held in a company by an investor.
13F reportable assets: Securities and assets that institutional investment managers must disclose in quarterly SEC Form 13F filings.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Dividend yield: Annual dividend income expressed as a percentage of the current share price.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
Remittances: Money transfers sent by individuals, typically migrant workers, to family or others in their home country.
Foreign exchange spreads: The difference between the buying and selling price of foreign currency, often a source of revenue for payment companies.
Cross-border payment: A financial transaction where money is sent from one country to another.
Fund holding: A specific investment or security owned within an investment fund's portfolio.
Quarter: A three-month period used by companies and investors to report and assess financial performance.
52-week high: The highest price at which a security has traded during the past year.
Agent network: A group of third-party businesses authorized to provide a company's services, such as money transfers, to customers.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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