Finance

Dissecting the Insider Trading Patterns of The Western Union Company (WU)

Recent insider trends for The Western Union Company (NYSE:WU) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on WU is anything to go by, investors should pay attention.

Institutions own 104.86% of The Western Union Company (WU)’s shares. The total value of these holdings, in millions, is $9,488. Among active positions in the latest quarter, 225 holders increased their positions by a total of 21.5 million shares, 260 holders decreased the positions by a total of 30.53 million shares, and 104 holders held their positions. This works out to a net decrease in ownership of 9.04 million shares, and suggests that institutions are feeling bearish about the stock.

Among new and sold out positions, 41 holders initiated new positions by a total of 2.61 million shares and 50 holders exited their positions by a total of 7.33 million shares. This nets out to a decrease of 4.72 million shares and is another bearish sign for WU.

In the last three months, insiders executed a total of 4 trades. 1 of these were buys and 3 were sells. Insider ownership decreased by a total of 7980 shares, which suggests that WU’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 28 buys and 17 sells, and ownership increased by a net of 508858 shares.



Short interest, or the number of a stock’s tradable shares currently being shorted, is another metric investors use to get a pulse on sentiment. The Western Union Company (NYSE:WU)’s short interest is 39.99 million shares, or % of the float. This represents a decrease of -6% in the number of shares being shorted compared to the previous reading, and implies that investors felt less pessimistic about the stock during the past two weeks.

In light of the insider ownership and trading data it makes sense to consider technicals to see if they come to a similar conclusion about the outlook for WU. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that WU is a hold, which implies that WU is expected to perform in line with the market based on prior trading patterns.

Conclusion




Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bearish. Technical indicators (also) suggest that The Western Union Company (NYSE:WU) is fairly valued.

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