What Happened?
Shares of money transfer company Western Union (NYSE: WU) jumped 3.1% in the pre-market session after the company's CEO, Devin McGranahan, purchased 176,500 shares, signaling strong insider confidence.
The transaction, which took place on August 21st, amounted to a substantial $1.50 million investment. This move was further supported by a recent purchase from Chief Financial Officer Matthew Cagwin, who invested $146,300 in the company's stock. Insider buying of this magnitude is often seen by investors as a bullish signal, suggesting that top executives believe the company is undervalued or poised for positive developments. The vote of confidence from management comes as Western Union faces pressure from short-sellers, with one investor recently disclosing a significant short position based on the belief that the business is in "terminal decline.".
After the initial pop the shares cooled down to $8.54, up 1.2% from previous close.
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What Is The Market Telling Us
Western Union’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Western Union is down 18.2% since the beginning of the year, and at $8.54 per share, it is trading 30.2% below its 52-week high of $12.23 from September 2024. Investors who bought $1,000 worth of Western Union’s shares 5 years ago would now be looking at an investment worth $357.11.
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