Analysts Are Behind The Curve When Rating MoneyGram International, Inc. (MGI)

On December 03, 2019, MoneyGram International, Inc. (NASDAQ:MGI) shares lost -8.49% or -0.24 points to close at $2.64 with a heavy trading volume of 4.267 million shares. It opened the trading session at $2.85, the shares rose to $2.85 and dropped to $2.5, the range by which the price of stock traded the whole day. The company now has a market cap of $168 million and currently has 63.68 million outstanding shares. MoneyGram International, Inc. (MGI) stock has plunged -21.89 percent of market value in 21 trading days.

MGI stock’s trailing 3-year beta is 2.67, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was -$0.9 share in the trailing 52 weeks. The stock’s value surged 32 percent year to date (YTD) compared to a rise of 21.1 percent in 52 week’s period. The firm’s shares are still trading -60.6 percent below its 1-year high of $6.70 and 98.5 percent up from 52-week low of $1.33. The average consensus ranking on the company is 3.3, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a hold.

MoneyGram International, Inc. (MGI) is most likely going to rise 26.14 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $6-month high price target. This represents a whopping 127.27 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $3, which means a return possibility of 13.64 percent in comparison with the closing price of the stock of $2.64 on December 03. The lowest price set for the stock is $1 — just above -62.12 percent from MGI share price now.

Past records have indicated that shares in MoneyGram International, Inc. declined on 21 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of MGI’s Q4 earnings on February 13. Analysts are predicting revenue to suffer decline of -4.9 percent to $329M in the financial fourth quarter, while EPS will soar by about -300 percent to -$0.02 per share. In the last quarter, it earnings of $0.12 per share came better than the -$0.01932, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $345.8M, missing the $348.45M analysts had expected. Earnings are seen to rise by 52.9 percent this year, -500 percent in the coming year.

Let’s take a glimpse at some insider activity at MoneyGram International, Inc. (NASDAQ:MGI) and observe the pattern. The earliest insider trade happened on 11/22/2019. Ripple Labs Inc. gathered a total of 626.6 thousand shares of the firm at average share price of $4.1. The total amount for the purchase was set at $2.57 million. On completing this exchange, the insider’s account balance was 6.24 million shares. The stock lost -35.61 percent from that insider purchase. On 05/11/2017, Agualimpia Juan, EVP Business Development & CMO, did a sale of 98.09 thousand shares at a price of $17.4 per share. This got rid of 1.71 million shares from the insider’s fortune and the stock experienced a -84.83 percent retreat in price since the news became public. This exchange saw 154.51 thousand shares get out from the EVP Business Development & CMO account.

On 03/20/2017, VP and Corporate Controller Stoneham John D recorded a sale transaction valued at $123.95 thousand. The sale at $16.29 a share has eliminated 7.61 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed -83.79 percent decrease since the transaction reporting date. The company insider is left with 15.39 thousand shares remaining in the account. Villareal Andres, who works as SVP Chief Compliance Officer at the company, performed a sale of 4 thousand shares in a transaction worth $39.28 thousand. The disposal recorded on 11/14/2016 was priced at $9.82 per share. The stock price plunged -73.12 percent since the transaction. Villareal Andres currently holds a stake of 49.59 thousand in MGI stock which is worth $130.91 thousand after the insider selling.

The stock is lingering around the initial support level of $2.48. After this, the following support is at the zone of $2.31. Up until the time the MGI stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 34.28 on the daily chart, and this may be a cause for comfort. In case the price goes below $2.31 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $2.83 level may cause a pull-back move approaching $3.01 mark.

The industry MGI deals with has an average P/E of 21. Its P/B ratio is standing at 0X compared to the 4.7 industry average. It is additionally sporting a 0.1 on the Price-to-Sales ratio, compared to the industry’s P/S average of 5.3. MoneyGram International, Inc. has a 50.6% gross profit margin, with its operating margin around 4%. Alongside this, the company’s net profit margin currently stands at -4.7%.