Western Union Target of Unusually High Options Trading (NYSE:WU)

The Western Union Company (NYSE:WU) was the recipient of unusually large options trading activity on Monday. Traders bought 9,812 call options on the stock. This is an increase of 115% compared to the typical daily volume of 4,573 call options.

Insider Activity

In other Western Union news, insider Benjamin Carlton Adams sold 19,924 shares of the business’s stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $9.23, for a total value of $183,898.52. Following the completion of the sale, the insider owned 234,689 shares of the company’s stock, valued at $2,166,179.47. The trade was a 7.83% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Giovanni Angelini sold 6,000 shares of the company’s stock in a transaction dated Tuesday, April 28th. The stock was sold at an average price of $9.47, for a total value of $56,820.00. Following the sale, the insider owned 311,292 shares of the company’s stock, valued at approximately $2,947,935.24. This trade represents a 1.89% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 3.29% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Wilmington Savings Fund Society FSB grew its position in Western Union by 606.7% during the third quarter. Wilmington Savings Fund Society FSB now owns 3,265 shares of the credit services provider’s stock worth $26,000 after buying an additional 2,803 shares in the last quarter. Ascentis Independent Advisors bought a new stake in shares of Western Union during the first quarter valued at approximately $30,000. Salomon & Ludwin LLC lifted its position in Western Union by 1,546.5% in the fourth quarter. Salomon & Ludwin LLC now owns 3,326 shares of the credit services provider’s stock worth $31,000 after purchasing an additional 3,124 shares during the period. Fifth Third Bancorp lifted its position in Western Union by 67.0% in the fourth quarter. Fifth Third Bancorp now owns 3,331 shares of the credit services provider’s stock worth $31,000 after purchasing an additional 1,336 shares during the period. Finally, Caitong International Asset Management Co. Ltd boosted its stake in Western Union by 179.6% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 3,341 shares of the credit services provider’s stock worth $31,000 after buying an additional 2,146 shares in the last quarter. Institutional investors and hedge funds own 91.81% of the company’s stock.

Western Union Stock Performance

Shares of NYSE:WU traded down $0.10 during midday trading on Monday, hitting $7.91. The company’s stock had a trading volume of 2,614,757 shares, compared to its average volume of 8,649,695. The stock has a market capitalization of $2.47 billion, a price-to-earnings ratio of 5.81, a PEG ratio of 1.02 and a beta of 0.46. The stock’s 50 day simple moving average is $8.09 and its 200 day simple moving average is $8.93. Western Union has a fifty-two week low of $6.91 and a fifty-two week high of $10.35. The company has a debt-to-equity ratio of 2.88, a quick ratio of 1.11 and a current ratio of 1.11.

Western Union (NYSE:WU) last posted its quarterly earnings data on Friday, April 24th. The credit services provider reported $0.25 earnings per share for the quarter, missing the consensus estimate of $0.40 by ($0.15). Western Union had a return on equity of 55.94% and a net margin of 10.88%.The business had revenue of $963.50 million for the quarter, compared to analyst estimates of $1.06 billion. During the same period in the prior year, the firm posted $0.41 EPS. Western Union’s revenue for the quarter was down .1% on a year-over-year basis. Western Union has set its FY 2026 guidance at 1.750-1.850 EPS. As a group, research analysts anticipate that Western Union will post 1.76 earnings per share for the current year.

Western Union Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 16th were paid a $0.235 dividend. The ex-dividend date was Tuesday, June 16th. This represents a $0.94 annualized dividend and a dividend yield of 11.9%. Western Union’s dividend payout ratio (DPR) is presently 69.12%.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings downgraded Western Union from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, June 5th. Seven equities research analysts have rated the stock with a Hold rating and six have given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Reduce” and a consensus price target of $8.82.

About Western Union

Western Union Company (NYSE: WU) is a global leader in cross-border, cross-currency money movement and payments. The company enables individuals and businesses to send and receive money through a variety of channels, including its vast agent network, online platforms, and mobile applications. Core services include person-to-person money transfers, business-to-business cross-border payments, bill payment services and prepaid card programs.

Through its digital offerings, Western Union provides customers with the ability to initiate transfers via its website and mobile app, as well as track transactions in real time.