Investors Purchase Large Volume of Western Union Call Options (NYSE:WU)

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

Analysts Set New Price Targets

A number of research analysts have recently issued reports on WU shares. Cantor Fitzgerald dropped 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. Wolfe Research reissued an “underperform” rating and set a $8.00 target price on shares of Western Union in a research report on Friday. JPMorgan Chase & Co. cut their price target on Western Union from $9.00 to $8.00 and set an “underweight” rating for the company in a research note on Monday, July 13th. Susquehanna cut their price target on shares of Western Union from $10.00 to $8.00 and set a “neutral” rating on the stock in a report on Friday. Finally, 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 note on Friday. Five analysts have rated the stock with a Hold rating and seven have assigned a Sell rating to the stock. According to data from MarketBeat, Western Union has an average rating of “Strong Sell” and an average price target of $7.75.

Institutional Trading of Western Union

A number of hedge funds have recently made changes to their positions in WU. Wilmington Savings Fund Society FSB raised its holdings in 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 worth $26,000 after buying an additional 2,803 shares during the last quarter. Ascentis Independent Advisors purchased a new position in Western Union in the first quarter worth about $30,000. Salomon & Ludwin LLC increased its position in shares of Western Union by 1,546.5% during the 4th quarter. Salomon & Ludwin LLC now owns 3,326 shares of the credit services provider’s stock valued at $31,000 after purchasing an additional 3,124 shares during the last quarter. Fifth Third Bancorp lifted its stake in shares of Western Union by 67.0% in the 4th quarter. Fifth Third Bancorp now owns 3,331 shares of the credit services provider’s stock worth $31,000 after purchasing an additional 1,336 shares during the period. Finally, Caitong International Asset Management Co. Ltd grew its position in Western Union by 179.6% during the fourth 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 period. 91.81% of the stock is owned by institutional investors.

Western Union Price Performance

WU stock traded down $1.35 during mid-day trading on Friday, hitting $6.33. 42,415,351 shares of the stock were exchanged, compared to its average volume of 8,916,034. Western Union has a 12 month low of $6.35 and a 12 month high of $10.35. The company has a debt-to-equity ratio of 2.88, a current ratio of 1.11 and a quick ratio of 1.11. The business has a fifty day moving average price of $7.84 and a 200 day moving average price of $8.76. The stock has a market capitalization of $1.98 billion, a price-to-earnings ratio of 4.65, a PEG ratio of 1.03 and a beta of 0.46.

Western Union (NYSE:WU) last posted 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 $0.43 by ($0.12). Western Union had a return on equity of 55.94% and a net margin of 10.88%.The business had revenue of $1.01 billion during the quarter, compared to the consensus estimate of $1.02 billion. During the same period in the prior year, the firm earned $0.37 earnings per share. The business’s revenue for the quarter 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 anticipate that Western Union will post 1.74 EPS 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 dividend of $0.235 per share. The ex-dividend date was Tuesday, June 16th. This represents a $0.94 annualized dividend and a dividend yield of 14.8%. Western Union’s payout ratio is currently 69.12%.

Key Headlines Impacting Western Union

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

• Positive Sentiment: Investors purchased 37,963 WU call options, roughly 764% above average call volume. The activity may signal speculative interest in a recovery, although options flow alone does not establish a sustained bullish trend.
• Positive Sentiment: Western Union is targeting $50 million in annualized cost reductions by year-end and is investing in artificial intelligence and digital capabilities. Branded Digital revenue increased 7% and transactions rose 25%, while Consumer Services revenue grew 4%. Western Union targets $50M run-rate cost reduction
• Neutral Sentiment: Susquehanna lowered its price target from $10 to $8 and retained a neutral rating. The revised target still implies approximately 23.6% upside from the referenced $6.47 price, but the reduction reflects more cautious expectations. Benzinga report
• Negative Sentiment: Second-quarter adjusted EPS was $0.31, below the $0.43 analyst consensus and down from $0.37 a year earlier. GAAP EPS declined to $0.24 from $0.37, net income fell 37% to $76.7 million, and revenue decreased 1% to $1.013 billion. Western Union Q2 earnings miss
• Negative Sentiment: Management guided to 2026 adjusted EPS of $1.25-$1.35, well below the roughly $1.75 consensus estimate, with revenue guidance of $4.2-$4.3 billion. Consumer Money Transfer revenue fell 2%, and the Americas retail business failed to improve as expected. The planned Intermex acquisition has also been delayed, postponing anticipated synergies. Western Union Reports Second Quarter 2026 Results

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.