Moneygram International (NASDAQ:MGI) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Friday. The brokerage currently has a $6.75 target price on the financial services provider’s stock. Zacks Investment Research‘s target price suggests a potential upside of 11.94% from the stock’s current price.
According to Zacks, “MoneyGram’s second-quarter earnings beat the Zacks Consensus Estimate by 31% but declined 22% year over year. Earnings were adversely affected by higher compliance standards, the roll-out of the Walmart2World service, and lower investment revenues. The company continues to see strong growth in its mobile and online businesses. Its investment in innovative products and services, particularly in Digital/Self-Service solutions, would help to enhance revenue growth and diversify its product offerings. Its partnership with Ripple will allow it to use cryptocurrency to speed up the company's remittance settlement time and lower money transfer costs. However, weakness in the Money transfer business remains a challenge to the company’s top-line growth. High compliance costs and economic instability in some parts of the world continue to exert business volumes. Its shares have underperformed the industry in the past year.”
A number of other brokerages have also recently issued reports on MGI. BidaskClub cut shares of Moneygram International from a “sell” rating to a “strong sell” rating in a report on Saturday, August 4th. Morgan Stanley dropped their target price on shares of Moneygram International from $7.00 to $6.50 and set an “equal weight” rating for the company in a report on Monday, August 6th. Finally, ValuEngine cut shares of Moneygram International from a “sell” rating to a “strong sell” rating in a report on Wednesday, May 2nd. Three analysts have rated the stock with a sell rating, two have assigned a hold rating and one has assigned a buy rating to the company. The stock presently has an average rating of “Hold” and a consensus price target of $6.63.
NASDAQ MGI traded down $0.09 during trading hours on Friday, hitting $6.03. 267,294 shares of the stock were exchanged, compared to its average volume of 358,156. The stock has a market capitalization of $340.31 million, a P/E ratio of 8.27 and a beta of 1.93. Moneygram International has a 12-month low of $5.86 and a 12-month high of $17.07. The company has a quick ratio of 0.05, a current ratio of 0.05 and a debt-to-equity ratio of -2.15.
Moneygram International (NASDAQ:MGI) last posted its quarterly earnings results on Friday, August 3rd. The financial services provider reported $0.21 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.15 by $0.06. Moneygram International had a negative net margin of 2.27% and a negative return on equity of 8.32%. The firm had revenue of $374.60 million during the quarter, compared to analysts’ expectations of $387.37 million. During the same period in the prior year, the company posted $0.27 earnings per share. The firm’s revenue for the quarter was down 8.6% on a year-over-year basis. equities research analysts expect that Moneygram International will post 0.51 earnings per share for the current fiscal year.
A number of institutional investors have recently modified their holdings of MGI. Clearline Capital LP purchased a new position in shares of Moneygram International during the 1st quarter worth approximately $153,000. Cambria Investment Management L.P. purchased a new position in shares of Moneygram International during the 1st quarter worth approximately $156,000. Citigroup Inc. increased its stake in shares of Moneygram International by 7,783.5% during the 1st quarter. Citigroup Inc. now owns 19,630 shares of the financial services provider’s stock worth $169,000 after purchasing an additional 19,381 shares in the last quarter. Element Capital Management LLC purchased a new position in shares of Moneygram International during the 1st quarter worth approximately $187,000. Finally, MetLife Investment Advisors LLC purchased a new position in shares of Moneygram International during the 4th quarter worth approximately $194,000. 85.68% of the stock is owned by institutional investors.
Moneygram International Company Profile
MoneyGram International, Inc, together with its subsidiaries, provides money transfer services in the United States and internationally. The company operates through two segments, Global Funds Transfer and Financial Paper Products. The Global Funds Transfer segment offers money transfer services and bill payment services primarily to unbanked and underbanked consumers.
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