Zacks Investment Research Lowers MoneyGram International (MGI) to Sell

Zacks Investment Research lowered shares of MoneyGram International (NASDAQ:MGI) from a buy rating to a sell rating in a research note issued to investors on Monday morning.

According to Zacks, “MoneyGram International’s earnings of 9 cents per share missed the Zacks Consensus Estimate by 52.6% as well as plunged 133% year over year, due to decline in revenues and high tax rate. The stock has underperformed the industry in the past year. It has seen the Zacks Consensus Estimate for 2019 earnings being revised downward over the last 30 days. The company’s top-line growth remains challenged due to weakness in Money transfer business. High compliance cost and economic instability in some parts of the world continue to exert business volumes. Its partnership with Ripple will enable it to enjoy benefits offered by cryptocurrencies, which will increase the efficiency of services offered to its customers. The company's wide agent network, expansion of digital platform and a widespread geographical reach are other positives.”

A number of other research analysts have also commented on the stock. ValuEngine lowered shares of MoneyGram International from a sell rating to a strong sell rating in a research report on Wednesday, May 2nd. TheStreet lowered shares of MoneyGram International from a c rating to a d+ rating in a research report on Friday, March 16th. Four investment analysts have rated the stock with a sell rating and two have issued a hold rating to the stock. MoneyGram International presently has an average rating of Sell and a consensus price target of $15.05.

Shares of MGI stock opened at $6.95 on Monday. The company has a current ratio of 0.05, a quick ratio of 0.05 and a debt-to-equity ratio of -2.18. MoneyGram International has a 1 year low of $6.84 and a 1 year high of $6.95. The firm has a market cap of $387.09 million, a price-to-earnings ratio of 9.42 and a beta of 1.89.

MoneyGram International (NASDAQ:MGI) last released its quarterly earnings results on Monday, May 7th. The financial services provider reported $0.15 EPS for the quarter, missing analysts’ consensus estimates of $0.26 by ($0.11). The firm had revenue of $380.00 million for the quarter, compared to analysts’ expectations of $386.34 million. MoneyGram International had a negative net margin of 1.97% and a negative return on equity of 11.96%. The firm’s revenue for the quarter was down 1.6% on a year-over-year basis. During the same quarter last year, the firm earned $0.26 earnings per share. sell-side analysts expect that MoneyGram International will post 0.48 EPS for the current fiscal year.

A number of large investors have recently made changes to their positions in MGI. Millennium Management LLC grew its position in MoneyGram International by 7,437.8% in the first quarter. Millennium Management LLC now owns 1,467,158 shares of the financial services provider’s stock worth $12,647,000 after acquiring an additional 1,447,694 shares in the last quarter. State of Wisconsin Investment Board grew its position in MoneyGram International by 58.1% in the fourth quarter. State of Wisconsin Investment Board now owns 2,415,344 shares of the financial services provider’s stock worth $31,834,000 after acquiring an additional 887,900 shares in the last quarter. NINE MASTS CAPITAL Ltd purchased a new position in MoneyGram International in the fourth quarter worth $5,607,000. Dimensional Fund Advisors LP grew its position in MoneyGram International by 38.4% in the first quarter. Dimensional Fund Advisors LP now owns 1,206,502 shares of the financial services provider’s stock worth $10,400,000 after acquiring an additional 334,658 shares in the last quarter. Finally, Brookfield Asset Management Inc. purchased a new position in MoneyGram International in the first quarter worth $1,940,000. Institutional investors own 87.03% of the company’s stock.

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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