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

The Western Union Company (NYSE:WU) was the target of some unusual options trading on Friday. Traders acquired 37,963 call options on the company. This represents an increase of 764% compared to the typical volume of 4,396 call options.

Western Union Price Performance

Shares of NYSE WU opened at $6.36 on Friday. Western Union has a twelve month low of $6.27 and a twelve month high of $10.35. The firm has a fifty day simple moving average of $7.80 and a 200 day simple moving average of $8.74. The company has a market capitalization of $1.99 billion, a PE ratio of 5.17, a P/E/G ratio of 0.98 and a beta of 0.46. The company has a quick ratio of 1.11, a current ratio of 1.11 and a debt-to-equity ratio of 2.88.

Western Union (NYSE:WU) last released its earnings results on Thursday, July 30th. The credit services provider reported $0.31 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.42 by ($0.11). Western Union had a net margin of 9.79% and a return on equity of 50.66%. The firm had revenue of $1.01 billion during the quarter, compared to analyst estimates of $1.02 billion. During the same quarter in the previous year, the firm earned $0.37 EPS. 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. On average, sell-side analysts forecast that Western Union will post 1.74 EPS for the current year.

Western Union Dividend Announcement

The firm 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. This represents a $0.94 dividend on an annualized basis and a dividend yield of 14.8%. The ex-dividend date of this dividend was Tuesday, June 16th. Western Union’s payout ratio is currently 76.42%.

Hedge Funds Weigh In On Western Union

Institutional investors have recently added to or reduced their stakes in the business. Wilmington Savings Fund Society FSB boosted its holdings in shares of Western Union by 606.7% during the 3rd 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 acquired a new position in shares of Western Union during the 1st quarter valued at $30,000. Salomon & Ludwin LLC boosted its stake in 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 acquiring an additional 3,124 shares in the last quarter. Fifth Third Bancorp boosted its stake in Western Union by 67.0% during the fourth quarter. Fifth Third Bancorp now owns 3,331 shares of the credit services provider’s stock worth $31,000 after acquiring an additional 1,336 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd grew its holdings in Western Union by 179.6% in 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 purchasing an additional 2,146 shares during the period. 91.81% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting 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.

Analyst Ratings Changes

Several brokerages have commented on WU. Monness Crespi & Hardt reaffirmed a “sell” rating and set a $6.00 target price on shares of Western Union in a report on Friday. Wolfe Research reissued an “underperform” rating and issued a $8.00 price target on shares of Western Union in a research note on Friday. Susquehanna lowered their price objective on Western Union from $10.00 to $8.00 and set a “neutral” rating for the company in a research report on Friday. Cantor Fitzgerald cut their price objective on Western Union from $9.00 to $8.00 and set an “underweight” rating on the stock in a research note on Wednesday, July 22nd. Finally, Weiss Ratings cut Western Union from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, June 5th. Six research analysts have rated the stock with a Hold rating and seven have issued a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Strong Sell” and a consensus target price of $7.77.

Western Union Company Profile

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.