MGI stock: buy or sell?

MGI stock price: $2.65 -2.57% At close on January 17th, 2020

Updated on:
January 17th, 2020

1

After boosting an exceptional 18.75% on Jan/16, Moneygram International closed yesterday at $2.65 and dropped a godawful -2.57%.

MoneyGram International, Inc., together with its subsidiaries, provides money transfer services in the United States and internationally.

Should I buy MGI stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best moment to buy them. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, Moneygram International stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Moneygram International stock a buy?

Banks and financial institutions post stock ratings everyday. At Stocks2.com, we detected 4 ratings published for MGI stock in the last 30 days.

The general sentiment of these ratings is bullish for MGI stock, with 3 positive ratings.
Is MGI a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-9Barclaysn/aUnderweight
2019-9-5Northland Securitiesn/aBuy
2019-7-1Northland Securitiesn/aBuy
2019-4-3Northland SecuritiesMarket PerformOutperform

MGI stock analysis

Daily outlook

After boosting an exceptional 18.75% on January/16, Moneygram International closed yesterday at $2.65 and dropped a godawful -2.57%.

After boosting an exceptional 18.75% on January/16, Moneygram International closed yesterday at $2.65 and dropped a godawful -2.57%. Since price and SMA200d lines crossed down on December, MGI fell $-0.42 per share (-13.68%). From a daily perspective, MGI is in a short term uptrend after plotting its last bottom ($2.08, on Tuesday) higher than the previous bottom, and its last top ($2.80, on January 16th) also over the previous top. Now trading in between its last bottom and last top MGI might consolidate in a plain range, waiting to break out over $2.80 or down under $2.08.

MGI stock chart (daily)

Weekly outlook

Shares of Moneygram International closed this week at $2.65 and skyrocketed an extraordinary 19.37%. By mid December 2019 MGI plunged a scary -6.76% in just one week. With this, it's been 3 green weeks in a row, gaining $0.51 or 22.97%.

Since price and 40-weeks moving average lines crossed down early December, MGI fell $-0.42 per share (-13.68%). Stocks under the 200 days moving average line are usually not recommended for average traders. Since SMA20w and SMA40w crossed up early August, MGI price slid a -4.68%.

MGI stock chart (weekly)

MGI stock price history

MGI stock went public on August 12th, 2004 with a price of $132.911. Since then, MGI stock lost a -98.00%, with a yearly average of -6.50%.

1: Adjusted price after possible price splits or reverse-splits.

MGI stock historical price chart

MGI stock reached 52-week highs on September at $6.70, and all-time highs 2006-05-09 with a price of 292.52.

MGI stock price target is $5.30

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. We detected 2 price predictions for MGI stock posted in the last month:
MGI stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-9BarclaysRaises Target$2.00$3.5075%
2019-9-5Northland SecuritiesReiteratesn/a$7.00-
(in average)$2.00$5.30165.0%
The price forecast for Moneygram International stock is $5.30, moving in a range between $7.00 and $3.50. In average, analysts' outlook on MGI price target is positive, improving the prediction by a 165.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On February, Moneygram International reported its latest financial data, posting an amazing climb for the Earnings per Share (EPS) ratio. Experts expected $-0.01 per share, but Moneygram International posted $-0.02.
MGI earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a0.18n/a
2017-Q2-n/a0.16n/a
2017-Q3-n/a0.14n/a
2017-Q4-n/an/an/a
2018-Q12018-05-070.190.09-52.6%
2018-Q22018-08-030.110.1863.6%
2018-Q32018-11-080.110.2190.9%
2018-Q42019-02-11-0.01-0.02n/a
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

In 2018, Moneygram International annual sales slipped a godawful -9.64% to $1,447.60 M dollars from $1,602.10 marked in 2017. Nonetheless, its income margin (compared to revenues) stayed stable to -1.66%, that is $-24.00 million.

MGI annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$1,470 M-$52 M3.6%-
2014$1,455 M-1.03%$72 M5.0%37.60%
2015$1,435 M-1.39%$-76.90 M-5.4%-206.66%
2016$1,630 M13.64%$16 M1.0%-121.20%
2017$1,602 M-1.74%$-29.80 M-1.9%-282.82%
2018$1,448 M-9.64%$-24.00 M-1.7%-19.46%

Quarterly financial results

Moneygram International reported $345.80 M in revenues for 2018-Q4, a -0.40% decline compared to previous quarter. Reported quarter income marked $-12.50 M with a profit margin of -3.61%. Profit margin inched a 2.40% compared to previous quarter when profit margin was -6.02%. When comparing revenues to same quarter last year, Moneygram International sales marked a scary drop down and plummed a -15.29%. Looking back to recent quarterly results, Moneygram International posted 4 positive quarters in a row.
MGI quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$386 M-$8.80 M2.3%-
2017-Q2$410 M6.19%$6.20 M1.5%-29.55%
2017-Q3$398 M-2.98%$7.70 M1.9%24.19%
2017-Q4$408 M2.61%$-52.50 M-12.9%-781.82%
2018-Q1$380 M-6.91%$7.10 M1.9%-113.52%
2018-Q2$375 M-1.42%$2.30 M0.6%-67.61%
2018-Q3$347 M-7.31%$-20.90 M-6.0%-1,008.70%
2018-Q4$346 M-0.40%$-12.50 M-3.6%-40.19%

Moneygram International ownership

When you are planning to invest in a company, it's always worth to check its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Moneygram International, 13.54% of all outstanding shares are owned by its staff.

In case of Moneygram International stock, 28.33% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for MGI stock account 0.00%, no big difference from last month.

For a better context understanding, the next table shows ownership data compared to other related companies:

MGIEEFTFISGPNWEX
Market cap$166.1 M$8.9 B$90.4 B$59.7 B$9.8 B
Total shares62.7 M54.0 M614.6 M300.6 M43.3 M
Float shares54.2 M51.9 M612.7 M298.3 M42.9 M
  - Institutional holdings (%)28.3%96.8%92.3%92.0%100.8%
  - Insider holdings (%)13.5%3.9%0.3%0.5%0.9%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

MGI summary

Friday, January 17th, 2020
Open$2.71
Close$2.65
Day range$2.50 - $2.75
Previous close$2.72
Session gain-2.57%
Average true range$0.18
50d mov avg$2.57
100d mov avg$3.48
200d mov avg$2.96
Daily patternlt06a
Weekly pattern lb06c

Moneygram International performance

To better understand Moneygram International performance you must compare its gains with other related stocks in same sector or industry. We compared Moneygram International against Euronet Worldwide, Fidelity National Information Services, Global Payments, WEX and Western Union in the following table:
Stock3m6m12m
MGIMoneygram Interna...-38.66%21.00%20.45%
EEFTEuronet Worldwide12.73%-0.48%45.41%
FISFidelity National...14.91%13.97%40.57%
GPNGlobal Payments24.18%20.71%73.56%
WEX 12.39%4.30%39.59%
WUWestern Union16.44%38.30%57.78%

Moneygram International competitors

We picked a few stocks to conform a list of Moneygram International competitors to watch if you are interested in investing in MGI: