SOLOMON TRUJILLO Expands Holdings With Western Union Stock Options

A substantial acquisition of company stock options by SOLOMON TRUJILLO, Board Member at Western Union WU was reported on February 29, based on a new SEC filing.

What Happened: TRUJILLO, Board Member at Western Union, acquired stock options for 69,931 shares of WU. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The options allow TRUJILLO to buy the company's stock at $12.8 per share.

As of Thursday morning, Western Union shares are up by 0.84%, with a current price of $13.25. This implies that TRUJILLO's 69,931 shares have a value of $31,468.

Unveiling the Story Behind Western Union

Western Union provides domestic and international money transfers through its global network of about 600,000 outside agents. The company handled over 270 million transactions in 2022 and is the largest money transfer company in the world.

Western Union: A Financial Overview

Negative Revenue Trend: Examining Western Union's financials over 3 months reveals challenges. As of 31 December, 2023, the company experienced a decline of approximately -3.63% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.

Interpreting Earnings Metrics:

• Gross Margin: With a low gross margin of 37.65%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Western Union's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.35.

Debt Management: With a high debt-to-equity ratio of 5.57, Western Union faces challenges in effectively managing its debt levels, indicating potential financial strain.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 7.82 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.12 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 3.81 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

The Importance of Insider Transactions

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Cracking Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.

Check Out The Full List Of Western Union's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.