Board Member At Western Union Acquires Company Stock Options Worth $100K

MICHAEL MILES, Board Member at Western Union WU, reported acquisition of company stock options on February 29, according to a new SEC filing.

What Happened: In a recent Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, MILES, Board Member at Western Union, acquired 223,778 stock options for WU with an exercise price of $12.8 per share.

Western Union shares are trading up 0.84% at $13.25 at the time of this writing on Thursday morning. Since the current price is $13.25, this makes MILES's 223,778 shares worth $100,700.

Get to Know Western Union Better

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.

Understanding the Numbers: Western Union's Finances

Revenue Growth: Western Union's revenue growth over a period of 3 months has faced challenges. As of 31 December, 2023, the company experienced a revenue decline of approximately -3.63%. This indicates a decrease in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.

Profitability Metrics: Unlocking Value

• Gross Margin: The company faces challenges with a low gross margin of 37.65%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Western Union's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.35.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 5.57, caution is advised due to increased financial risk.

Insights into Valuation Metrics:

• 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 3.81 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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Why Insider Activity Matters in Finance

Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.

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.

A Deep Dive into Insider Transaction Codes

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a 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.