Handle With Care: MoneyGram International Inc. (NASDAQ: MGI)


    BlackRock Fund Advisors recently announced the acquisition of new stake in MoneyGram International Inc. (NASDAQ:MGI). The institutional investor has increased its shareholding in the Financial company by 428.02% to 3.39 million shares with purchase of 2.75 million shares. This fresh investment now brings its stake to 5.34% valued currently at $11.79 million. In addition, The Vanguard Group, Inc. raised its holdings by 63949.0 to 2.27 million shares. And SSgA Funds Management, Inc. has lifted its position by 2,490.21% or 0.76 million shares – to 0.79 million shares.

    With over 2.17 million MoneyGram International Inc. (MGI) shares trading Monday and a closing price of $3.20 on the day, the dollar volume was approximately $6.95 million. The shares have shown a negative weekly performance of -10.86% and its price on 08/24/20 gained nearly 1.59%. Currently, there are 77.80M common shares owned by the public and among those 55.05M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 7 analysts who have offered their price forecasts for MGI have a consensus price objective of $3.00. The analysts have set the share’s price value over the next 12 months at a high of $3.00 and a low of $3.00 should the stock experience a downside. Incidentally, analysts’ outlook for the MoneyGram International Inc. stock is 3.30 for the next 12 months. The average price target is -37.34% below its last price level and a downside to the estimated low will see the stock lose -6.67% over that period. But an upside of -6.67% will see the stock hit the forecast high price target while mean target price for the stock is $3.00.

    Insiders at the company have transacted a total of 35 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 14 of these insider trades were purchases, accounting for 3,257,557 shares. Insider sales of the common stock occurred on 21 occasions, with total insider shares sold totaling 23,945,853 shares.

    The top 3 mutual fund holders in MoneyGram International Inc. are Vanguard Total Stock Market Index, iShares Russell 2000 ETF, and Emerald Banking & Finance Fund. Vanguard Total Stock Market Index owns 1.86 million shares of the company’s stock, all valued at over $6.48 million. The company bought an additional 0.31 million shares recently to bring their total holdings to about 2.94% of the shares outstanding. iShares Russell 2000 ETF sold 41910.0 shares to see its total holdings shrink to 1.31 million shares valued at over $4.57 million and representing 2.07% of the shares outstanding. Emerald Banking & Finance Fund now owns shares totaling to 0.98% of the shares outstanding.

    Shares of MoneyGram International Inc. (NASDAQ: MGI) opened at $3.18, up $0.03 from a prior closing price of $3.15. However, the script later closed the day at $3.20, up 1.59%. The company’s stock has a 5-day price change of -10.86% and 50.94% over the past three months. MGI shares are trading 52.38% year to date (YTD), with the 12-month market performance down to -13.98% lower. It has a 12-month low price of $1.15 and touched a high of $6.70 over the same period. Currently, 2.17 million shares have been traded, compared to an average intraday trading volume of 3.26 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -7.49%, -2.38%, and 30.69% respectively.

    Institutional ownership of MoneyGram International Inc. (NASDAQ: MGI) shares accounts for 39.30% of the company’s 77.80M shares outstanding. Mutual fund holders own 21.94%, while other institutional holders and individual stakeholders account for 86.43% and 12.96% respectively.

    It has a market capitalization of $212.42M and a beta (3y monthly) value of 2.56. The earnings-per-share (ttm) stands at -$0.58. Price movements for the stock have been influenced by the stock’s volatility, which stands at 7.33% over the week and 7.96% over the month.

    Analysts forecast that MoneyGram International Inc. (MGI) will achieve an EPS of $0.07 for the current quarter, $0.06 for the next quarter and $0.19 for 2021. The lowest estimate earnings-per-share for the quarter is $0.01 while analysts give the company a high EPS estimate of $0.16. Comparatively, EPS for the current quarter was -$0.03 a year ago. Earnings per share for the fiscal year are expected to decrease by -111.60%, and 186.57% over the next financial year.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 7 brokerage firm advisors rate MoneyGram International Inc. (MGI) as a “Hold” at a consensus score of 3.30. Specifically, 0 Wall Street analysts polled rate the stock as a buy, while 5 of the 7 advise that investors “hold,” and 2 rated it as a “Sell.”

    Looking at the support for the MGI, a number of firms have released research notes about the stock. Evercore ISI stated their In-line rating for the stock in a research note on August 03, 2020, with the firm’s price target at $3. Northland Capital coverage for the MoneyGram International Inc. (MGI) stock in a research note released on March 24, 2020 offered a Market Perform rating with a price target of $1. Northland Capital was of a view on April 03, 2019 that the stock is Outperform, while Evercore ISI gave the stock Underperform rating on November 09, 2018, issuing a price target of. JP Morgan on their part issued Underweight rating on December 12, 2017.


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