Traders Purchase High Volume of Call Options on Western Union (NYSE:WU)

The Western Union Company (NYSE:WU) saw unusually large options trading activity on Friday. Traders bought 37,963 call options on the stock. This represents an increase of approximately 764% compared to the average daily volume of 4,396 call options.

Western Union Trading Down 17.4%

Shares of Western Union stock opened at $6.36 on Friday. Western Union has a 1 year low of $6.27 and a 1 year 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. The company has a market capitalization of $1.99 billion, a P/E ratio of 5.17, a PEG ratio of 0.81 and a beta of 0.46. The company’s fifty day moving average is $7.80 and its two-hundred day moving average is $8.74.

Western Union (NYSE:WU) last announced its earnings results on Thursday, July 30th. The credit services provider reported $0.31 EPS for the quarter, missing analysts’ consensus estimates of $0.42 by ($0.11). Western Union had a net margin of 9.79% and a return on equity of 50.66%. The business had revenue of $1.01 billion during the quarter, compared to analysts’ expectations of $1.02 billion. During the same period in the previous year, the company posted $0.37 earnings per share. Western Union’s quarterly revenue was down 1.3% on a year-over-year basis. Western Union has set its FY 2026 guidance at 1.250-1.350 EPS. Analysts forecast that Western Union will post 1.3 earnings per share for the current year.

Western Union Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Tuesday, June 16th were given a $0.235 dividend. This represents a $0.94 annualized dividend and a yield of 14.8%. The ex-dividend date was Tuesday, June 16th. Western Union’s payout ratio is 76.42%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Wilmington Savings Fund Society FSB increased its holdings in shares of Western Union by 606.7% in the third quarter. Wilmington Savings Fund Society FSB now owns 3,265 shares of the credit services provider’s stock valued at $26,000 after purchasing an additional 2,803 shares during the period. Ascentis Independent Advisors acquired a new stake in shares of Western Union during the first quarter worth $30,000. Salomon & Ludwin LLC lifted its holdings in shares of Western Union by 1,546.5% during 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 grew its position in Western Union by 67.0% in the 4th quarter. Fifth Third Bancorp now owns 3,331 shares of the credit services provider’s stock valued at $31,000 after buying an additional 1,336 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd grew its position in Western Union by 179.6% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 3,341 shares of the credit services provider’s stock valued at $31,000 after buying an additional 2,146 shares during the last quarter. 91.81% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Western Union

Here are the key news stories impacting Western Union this week:

• Positive Sentiment: Management is targeting $50 million in annualized cost reductions by year-end, while continued growth in digital services and artificial intelligence initiatives could support profitability. Consumer Services revenue increased 4% and Branded Digital revenue rose 7%, with digital transactions up 25%. Western Union targets $50 million cost reduction and guides 2026 adjusted EPS
• Neutral Sentiment: Unusually heavy options activity saw investors acquire 37,963 call options, about 764% above average volume. The activity may signal speculative interest or expectations of a rebound, but it does not necessarily indicate sustained buying demand for the stock.
• Neutral Sentiment: Western Union continues working with regulators on its planned Intermex acquisition. However, the transaction’s delay has postponed expected synergies and leaves the deal’s timing uncertain. Western Union pursues AI savings as falling migration hits revenue
• Negative Sentiment: Second-quarter adjusted EPS was $0.31, below the $0.43 analyst consensus, while revenue of approximately $1.01 billion also fell short of estimates. Revenue declined about 1% year over year, net income dropped 37%, and operating margin narrowed to 13% from 19%. Consumer Money Transfer revenue fell 2%, reflecting weakness in the Americas retail business. Western Union reports second quarter 2026 results
• Negative Sentiment: Western Union lowered its full-year 2026 adjusted EPS outlook to $1.25–$1.35, well below the roughly $1.75 consensus estimate. Revenue guidance of $4.2–$4.3 billion also indicates limited growth, increasing concerns about the company’s recovery prospects.
• Negative Sentiment: Analysts cut their price targets: Susquehanna reduced its target from $10 to $8 and RBC lowered its target from $9 to $8. Both firms retained neutral or sector-perform ratings, signaling limited conviction despite the targets remaining above the current trading level.

Analysts Set New Price Targets

WU has been the topic of a number of analyst reports. Wolfe Research restated an “underperform” rating and issued a $8.00 price objective on shares of Western Union in a report on Friday. Citigroup dropped their target price on Western Union from $9.50 to $8.50 and set a “neutral” rating on the stock in a report on Friday, July 17th. Barclays cut their price target on Western Union from $7.00 to $6.00 and set an “underweight” rating on the stock in a research note on Friday. Cantor Fitzgerald decreased their price target on Western Union from $9.00 to $8.00 and set an “underweight” rating for the company in a report on Wednesday, July 22nd. Finally, Morgan Stanley lowered their price objective on Western Union from $7.00 to $6.00 and set an “underweight” rating for the company in a research report on Friday. Six equities research analysts have rated the stock with a Hold rating and seven have given a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Strong Sell” and an average target price of $7.77.

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.