Is MoneyGram International Inc. (MGI) A Good Investment?

MoneyGram International Inc. (NASDAQ:MGI) trading with a subtraction of -$0.14 to $8.25 on Friday, a downside of -1.67 percent. An average of 1,322,709 shares of common stock have been traded in the last five days. There was a gain of $0.16 in the past week. The last 20 days have seen an average of 1,750,412 shares traded, while the 50-day average volume stands at 1,659,521.

MGI stock has decreased by -3.56% in the last month. The company shares reached their 1-month lowest point of $7.51 on 10/05/21. With the stock rallying to its 52-week high on 07/21/21, shares of the company touched a low of $3.06 and a high of $12.36 in 52 weeks. In spite of this, the price is down -33.25% from the 52-week high.


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Insider Transactions

21 days have passed since MoneyGram International Inc. (MGI) last reported insider trading activity. Villasenor Robert L, who is GC, Corp Sec and CAO, most recently acquired $10,000 shares at $9.25 per share on Sep 17. In this transaction, the insider spent $92,500. Chief Compliance Officer, Villareal Andres, disposed of 49,194 shares at a price of $10.07 on Aug 05. The insider now owns more than $495,438 worth of shares.

Valuation Metrics

MoneyGram International Inc. (MGI) has a trailing price-to-earnings (P/E) ratio of 14.40 for the broader industry and 12.92 for the sector. This means investors are optimistic about the stock’s future prospects. In the last five years, MoneyGram International Inc.’s PE ratio has ranged between 73.35 and 28.91. The stock’s beta is 1.73. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.59, and the price-to-cash flow ratio at 260.84.

On the profitability front, the trailing 12-month gross margin is 46.40% against a 5-year average of 31.2%. Its gross profit as reported stood at $452.6 million compared to revenue of $1.22 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, MoneyGram International Inc.’s return on assets was -0.20%, compared to -0.5% over the last five years.

Earnings Surprise

The analyst consensus anticipated MoneyGram International Inc.’s latest quarter earnings to come in at $0.01 per share, but it turned out to be $0.01, a 0.00% surprise. For the quarter, EBITDA amounted to $53.6 million. Shareholders own equity worth $91.51 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at MoneyGram International Inc. (MGI) price momentum. RSI 9-day as of the close on 07 October was 51.10%, suggesting the stock is Neutral, with historical volatility in this time frame at 65.13%.

As of today, MGI’s price is $7.95 +2.03% or $0.16 from its 5-day moving average. MGI is currently trading -2.87% lower than its 20-day SMA and +10.88% higher than its 100-day SMA. However, the stock’s current price level is -26.31% below the SMA50 and +21.42% above the SMA200.

The stochastic %K and %D were 42.13% and 26.56%, respectively, and the average true range (ATR) was 0.44. With the 14-day stochastic at 55.17% and the average true range at 0.45, the RSI (14) stands at 47.83%. The stock has reached 0.10 on the 9-day MACD Oscillator while the 14-day reading was at -0.03.

Analyst Ratings

JP Morgan upgraded MoneyGram International Inc. (NASDAQ: MGI) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as a an Underweight.The consensus rating for MoneyGram International Inc. (MGI) among analysts is Hold. According to current brokerage recommendations, 1 brokerage firm advise that investors sell MGI, while 4 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 2 others rate it as a “buy”.

What is MGI’s price target for the next 12 months?

Analysts predict a range of price targets between $10.00 and $12.25, with a median target of $11.50. Taking a look at these predictions, the average price target given by analysts for MoneyGram International Inc. (MGI) stock is $11.31.

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