Traders Buy Large Volume of Western Union Call Options (NYSE:WU)

Key Points

• Western Union experienced a significant uptick in options trading, with traders buying 10,710 call options, marking a 114% increase from average volumes.
• CEO Devin Mcgranahan and CFO Matthew Cagwin recently increased their stakes in Western Union, with Mcgranahan's acquisition representing a 23.96% increase in his ownership.
• The company recently reported a net margin of 21.83% and announced a quarterly dividend of $0.235 per share, yielding approximately 11.5% annually.

The Western Union Company (NYSE:WU - Get Free Report) saw some unusual options trading on Thursday. Stock traders acquired 10,710 call options on the stock. This represents an increase of 114% compared to the typical daily volume of 5,005 call options.

Insider Activity at Western Union

In other news, CEO Devin Mcgranahan acquired 176,470 shares of Western Union stock in a transaction on Thursday, August 21st. The shares were purchased at an average price of $8.49 per share, with a total value of $1,498,230.30. Following the acquisition, the chief executive officer owned 913,125 shares in the company, valued at $7,752,431.25. This represents a 23.96% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Matthew Cagwin acquired 17,500 shares of Western Union stock in a transaction on Monday, August 18th. The shares were purchased at an average cost of $8.36 per share, for a total transaction of $146,300.00. Following the acquisition, the chief financial officer owned 225,611 shares in the company, valued at approximately $1,886,107.96. This represents a 8.41% increase in their position. The disclosure for this purchase can be found here. 1.58% of the stock is owned by insiders.

Hedge Funds Weigh In On Western Union

A number of large investors have recently added to or reduced their stakes in WU. MCF Advisors LLC increased its holdings in Western Union by 464.3% during the 1st quarter. MCF Advisors LLC now owns 3,397 shares of the credit services provider's stock worth $36,000 after purchasing an additional 2,795 shares in the last quarter. Hantz Financial Services Inc. increased its holdings in Western Union by 667.0% during the 2nd quarter. Hantz Financial Services Inc. now owns 4,602 shares of the credit services provider's stock worth $39,000 after purchasing an additional 4,002 shares in the last quarter. GAMMA Investing LLC increased its holdings in Western Union by 188.1% during the 1st quarter. GAMMA Investing LLC now owns 3,803 shares of the credit services provider's stock worth $40,000 after purchasing an additional 2,483 shares in the last quarter. Caldwell Trust Co bought a new position in Western Union during the 2nd quarter worth about $45,000. Finally, Farmers & Merchants Investments Inc. increased its holdings in Western Union by 2,225.8% during the 2nd quarter. Farmers & Merchants Investments Inc. now owns 5,675 shares of the credit services provider's stock worth $48,000 after purchasing an additional 5,431 shares in the last quarter. Institutional investors own 91.81% of the company's stock.

Western Union Trading Up 0.3%

Shares of WU traded up $0.03 during trading hours on Thursday, reaching $8.16. The stock had a trading volume of 5,585,497 shares, compared to its average volume of 7,926,110. The company has a quick ratio of 1.15, a current ratio of 1.15 and a debt-to-equity ratio of 3.11. Western Union has a 52 week low of $7.85 and a 52 week high of $11.94. The firm has a 50-day moving average of $8.31 and a 200 day moving average of $8.81. The company has a market cap of $2.63 billion, a P/E ratio of 3.09, a P/E/G ratio of 2.78 and a beta of 0.61.

Western Union (NYSE:WU - Get Free Report) last released its quarterly earnings data on Monday, July 28th. The credit services provider reported $0.42 EPS for the quarter, missing analysts' consensus estimates of $0.44 by ($0.02). Western Union had a net margin of 21.83% and a return on equity of 66.11%. The firm had revenue of $1.03 billion during the quarter, compared to the consensus estimate of $1.04 billion. During the same quarter in the prior year, the company earned $0.44 EPS. Western Union's quarterly revenue was down 3.8% on a year-over-year basis. Western Union has set its FY 2025 guidance at 1.650-1.750 EPS. On average, sell-side analysts expect that Western Union will post 1.79 earnings per share for the current fiscal year.

Western Union Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 30th. Shareholders of record on Tuesday, September 16th were issued a dividend of $0.235 per share. This represents a $0.94 dividend on an annualized basis and a yield of 11.5%. The ex-dividend date was Tuesday, September 16th. Western Union's dividend payout ratio is 35.61%.

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on the company. Barclays set a $8.00 price target on Western Union and gave the company an "underweight" rating in a research note on Thursday, July 31st. Royal Bank Of Canada cut their price target on Western Union from $13.00 to $9.00 and set a "sector perform" rating on the stock in a research note on Tuesday, July 29th. Deutsche Bank Aktiengesellschaft assumed coverage on Western Union in a research note on Thursday, July 17th. They issued a "hold" rating and a $9.00 price target on the stock. Morgan Stanley cut their price target on Western Union from $9.00 to $7.00 and set an "underweight" rating on the stock in a research note on Tuesday, July 29th. Finally, UBS Group cut their price target on Western Union from $10.50 to $8.50 and set a "neutral" rating on the stock in a research note on Tuesday, July 29th. Ten analysts have rated the stock with a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat.com, Western Union has a consensus rating of "Reduce" and a consensus price target of $8.55.

About Western Union

The Western Union Company provides money movement and payment services worldwide. The company operates through Consumer Money Transfer and Consumer Services segments. The Consumer Money Transfer segment facilitates money transfers for international cross-border and intra-country transfers, primarily through a network of retail agent locations, as well as through websites and mobile devices.

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