Western Union Sees Unusually Large Options Volume (NYSE:WU)

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

Insider Activity at Western Union

In related news, insider Giovanni Angelini sold 6,000 shares of the business’s stock in a transaction that occurred on Tuesday, April 28th. The shares were sold at an average price of $9.47, for a total value of $56,820.00. Following the sale, the insider directly owned 311,292 shares in the company, valued at $2,947,935.24. The trade was a 1.89% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Benjamin Carlton Adams sold 19,924 shares of the firm’s stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $9.23, for a total transaction of $183,898.52. Following 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 SEC filing for this sale provides additional information. Insiders own 3.29% of the company’s stock.

Institutional Investors Weigh In On Western Union

Several institutional investors have recently made changes to their positions in WU. RiverFront Investment Group LLC raised its position in Western Union by 4.7% during the fourth quarter. RiverFront Investment Group LLC now owns 28,662 shares of the credit services provider’s stock valued at $267,000 after acquiring an additional 1,278 shares in the last quarter. Fifth Third Bancorp lifted its stake 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 valued at $31,000 after acquiring an additional 1,336 shares during the last quarter. Kelleher Financial Advisors grew its position in Western Union by 16.0% in the fourth quarter. Kelleher Financial Advisors now owns 9,992 shares of the credit services provider’s stock worth $93,000 after acquiring an additional 1,381 shares in the last quarter. Kestra Investment Management LLC increased its stake in shares of Western Union by 0.6% during the 4th quarter. Kestra Investment Management LLC now owns 239,428 shares of the credit services provider’s stock worth $2,229,000 after purchasing an additional 1,398 shares during the last quarter. Finally, PFG Investments LLC increased its stake in shares of Western Union by 6.6% during the 1st quarter. PFG Investments LLC now owns 23,382 shares of the credit services provider’s stock worth $204,000 after purchasing an additional 1,454 shares during the last quarter. 91.81% of the stock is currently owned by institutional investors and hedge funds.

Western Union Stock Down 1.3%

WU traded down $0.10 on Monday, reaching $7.91. 2,614,757 shares of the company traded hands, compared to its average volume of 8,649,695. The company has a market cap 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 company has a debt-to-equity ratio of 2.88, a current ratio of 1.11 and a quick ratio of 1.11. The stock’s 50 day moving average price is $8.09 and its 200-day moving average price is $8.93. Western Union has a 52-week low of $6.91 and a 52-week high of $10.35.

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

Western Union Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Tuesday, June 16th were given a $0.235 dividend. This represents a $0.94 annualized dividend and a yield of 11.9%. The ex-dividend date of this dividend was Tuesday, June 16th. Western Union’s dividend payout ratio is presently 69.12%.

Wall Street Analyst Weigh In

Separately, Weiss Ratings lowered shares of Western Union from a “hold (c-)” rating to a “sell (d+)” rating in a research note 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’s stock. According to MarketBeat.com, the stock currently 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.