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

Key Points

• Western Union saw unusually high options activity: Traders purchased 13,361 call options, 139% above the typical daily volume of 5,580.
• Shares traded near a 12-month low at $6.20, while the company’s latest quarterly earnings and revenue came in below analyst expectations. Analysts maintain a consensus “Strong Sell” rating with an average price target of $7.55.
• Western Union declared a quarterly dividend of $0.235 per share, equivalent to a $0.94 annualized payout and a high 15.2% yield; institutional investors own 91.81% of the stock.

The Western Union Company (NYSE:WU - Get Free Report) was the target of unusually large options trading activity on Monday. Stock traders purchased 13,361 call options on the stock. This is an increase of 139% compared to the typical daily volume of 5,580 call options.

Western Union Stock Performance

Shares of Western Union stock traded up $0.01 on Monday, reaching $6.20. 1,661,866 shares of the stock were exchanged, compared to its average volume of 9,070,069. The business has a 50 day moving average price of $7.40 and a two-hundred day moving average price of $8.13. The firm has a market capitalization of $1.93 billion, a price-to-earnings ratio of 5.03 and a beta of 0.50. Western Union has a twelve month low of $6.16 and a twelve month 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 - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The credit services provider reported $0.31 earnings per share 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 business had revenue of $1.01 billion during the quarter, compared to analyst estimates of $1.02 billion. During the same quarter last year, the company posted $0.37 EPS. Western Union's quarterly revenue 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. Analysts anticipate that Western Union will post 1.29 earnings per share for the current fiscal year.

Western Union Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 16th will be given a dividend of $0.235 per share. This represents a $0.94 annualized dividend and a yield of 15.2%. The ex-dividend date of this dividend is Wednesday, September 16th. Western Union's dividend payout ratio (DPR) is currently 76.42%.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on WU. Monness Crespi & Hardt restated a "sell" rating and set a $6.00 target price on shares of Western Union in a research note on Friday, July 31st. Wolfe Research reissued an "underperform" rating and issued a $8.00 price target on shares of Western Union in a report on Friday, July 31st. Zacks Research downgraded shares of Western Union from a "hold" rating to a "strong sell" rating in a report on Tuesday, August 4th. Barclays decreased their price objective on shares of Western Union from $7.00 to $6.00 and set an "underweight" rating for the company in a research report on Friday, July 31st. Finally, Royal Bank Of Canada lowered their target price on shares of Western Union from $9.00 to $8.00 and set a "sector perform" rating for the company in a research note on Friday, July 31st. Six investment analysts have rated the stock with a Hold rating and eight have given a Sell rating to the stock. According to MarketBeat, Western Union currently has a consensus rating of "Strong Sell" and an average price target of $7.55.

Hedge Funds Weigh In On Western Union

Institutional investors and hedge funds have recently modified their holdings of the stock. Ascentis Independent Advisors acquired a new stake in Western Union during the first quarter worth about $30,000. Caitong International Asset Management Co. Ltd boosted 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 worth $31,000 after purchasing an additional 2,146 shares in the last quarter. Nykredit A S acquired a new stake in shares of Western Union during the 2nd quarter worth approximately $51,000. Leonteq Securities AG acquired a new stake in shares of Western Union during the 4th quarter worth approximately $56,000. Finally, Parallel Advisors LLC increased its holdings in shares of Western Union by 197.3% during the 1st quarter. Parallel Advisors LLC now owns 6,516 shares of the credit services provider's stock valued at $57,000 after purchasing an additional 4,324 shares in the last quarter. Institutional investors and hedge funds own 91.81% of the company's stock.

About Western Union

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.

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