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

The Western Union Company (NYSE:WU) saw some unusual options trading activity on Monday. Stock traders acquired 13,361 call options on the company. This is an increase of approximately 139% compared to the typical volume of 5,580 call options.

Western Union Price Performance

Shares of NYSE WU traded up $0.01 during midday trading on Monday, hitting $6.20. The stock had a trading volume of 1,661,866 shares, compared to its average volume of 9,070,069. The company has a market capitalization of $1.93 billion, a PE ratio of 5.03 and a beta of 0.50. The stock has a 50 day simple moving average of $7.40 and a 200-day simple moving average of $8.13. Western Union has a 1 year low of $6.16 and a 1 year high of $10.35. The company has a quick ratio of 1.12, a current ratio of 1.12 and a debt-to-equity ratio of 2.95.

Western Union (NYSE:WU) last issued its quarterly earnings results on Thursday, July 30th. The credit services provider reported $0.31 EPS for the quarter, missing the consensus estimate of $0.42 by ($0.11). Western Union had a return on equity of 50.89% and a net margin of 9.79%.The firm had revenue of $1.01 billion for the quarter, compared to analysts’ expectations of $1.02 billion. During the same quarter in the previous year, the firm posted $0.37 earnings per share. The firm’s revenue for the quarter was down 1.3% compared to the same quarter last year. Western Union has set its FY 2026 guidance at 1.250-1.350 EPS. On average, sell-side analysts expect that Western Union will post 1.29 EPS for the current fiscal year.

Western Union Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 16th will be issued a dividend of $0.235 per share. The ex-dividend date of this dividend is Wednesday, September 16th. This represents a $0.94 dividend on an annualized basis and a dividend yield of 15.2%. Western Union’s dividend payout ratio is presently 76.42%.

Hedge Funds Weigh In On Western Union

Hedge funds and other institutional investors have recently modified their holdings of the business. Bank of America Corp DE grew its holdings in Western Union by 43.5% in the 1st quarter. Bank of America Corp DE now owns 3,838,382 shares of the credit services provider’s stock valued at $33,509,000 after buying an additional 1,163,577 shares in the last quarter. Bessemer Group Inc. raised its holdings in shares of Western Union by 52.6% during the 1st quarter. Bessemer Group Inc. now owns 520,779 shares of the credit services provider’s stock worth $4,547,000 after acquiring an additional 179,423 shares during the period. BlackRock Inc. acquired a new position in shares of Western Union during the 2nd quarter valued at about $241,806,000. Connor Clark & Lunn Investment Management Ltd. acquired a new position in shares of Western Union during the 2nd quarter valued at about $11,248,000. Finally, Capital Research Global Investors increased its position in Western Union by 35.3% during the fourth quarter. Capital Research Global Investors now owns 10,407,960 shares of the credit services provider’s stock worth $96,898,000 after purchasing an additional 2,716,385 shares during the last quarter. 91.81% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

WU has been the topic of several recent analyst reports. New Street Research reissued a “reduce” rating on shares of Western Union in a research note on Thursday, August 13th. Barclays cut 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, July 31st. Weiss Ratings raised Western Union from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Monday, August 3rd. JPMorgan Chase & Co. decreased their target price on Western Union from $9.00 to $8.00 and set an “underweight” rating on the stock in a research report on Monday, July 13th. Finally, Royal Bank Of Canada dropped their price target on shares of Western Union from $9.00 to $8.00 and set a “sector perform” rating on the stock in a research note on Friday, July 31st. Six research analysts have rated the stock with a Hold rating and eight have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Strong Sell” and an average price target of $7.55.

Western Union Company Profile

Western Union Company (NYSE:WU) is a global provider of money movement and payment services. The company enables consumers and businesses to send and receive money across borders and within individual markets through digital platforms, mobile applications and a network of retail agent locations.

Its services include consumer money transfers, international remittances, bill payments and money orders. Customers can typically initiate transfers online, through the Western Union app or at participating retail locations, with recipients able to collect funds in cash or receive them through eligible bank accounts, digital wallets or other payment methods, depending on the destination market.

Western Union traces its origins to 1851, when it was established as a telegraph company in the United States.