Macroaxis Stories

Is Moneygram Intl (NASDAQ:MGI) about to rebound?

December 5, 2021  By Raphi Shpitalnik
Macroaxis Story
As many millenniums are trying to avoid financial services space, it makes sense to concentrate on Moneygram Intl a little further and try to understand its current market patterns. As expected, Moneygram Intl is starting to reaffirm its true potential as stockholders are becoming more and more confident in the future outlook. Much of the drifts of the company stock price movements has been an effusion of what is happening in the market overall. The occurrence of stable technical and fundamental indicators of the company implies a mid-run price swing for stockholders of Moneygram. The next fiscal quarter end is expected on the 31st of December 2021. The stock goes through an active upward rally.
Published over a year ago
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Reviewed by Gabriel Shpitalnik

The company's average rating is Hold from 5 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Moneygram Intl market sentiment investors' perception of the future value of Moneygram. Let us look at a few aspects of Moneygram technical analysis.

How does Moneygram Stands against Peers?

Analyzing Moneygram Int competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Moneygram Int across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be. Check out Moneygram Int Competition Details

How important is Moneygram Int's Liquidity

Moneygram Int financial leverage refers to using borrowed capital as a funding source to finance Moneygram Int ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Moneygram Int financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Moneygram Int's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Moneygram Int's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Moneygram Int's total debt and its cash.

What is driving Moneygram Int Investor Appetite?

Moneygram Intl has a beta of 1.9424. Let's try to break down what Moneygram's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Moneygram Intl will likely underperform. The beta indicator helps investors understand whether Moneygram Intl moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Moneygram deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
The current drop in stock price may encourage stockholders to take a closer look at the firm as it is trading at a share price of 6.55 on 3,931,800 in trading volume. The company directors and management have failed to build on market volatilities in November. However, diversifying your overall positions with Moneygram Intl may protect your principal portfolio during upcoming market swings. The stock standard deviation of daily returns for 90 days investing horizon is currently 4.47. This high volatility is attributed to the latest market swings and not so good earnings reports for some of the Moneygram Intl partners.

Our perspective of the current Moneygram Intl rise

The treynor ratio is down to -0.2 as of today. Moneygram Intl exhibits very low volatility with skewness of 0.17 and kurtosis of 1.75. However, we advise investors to further study Moneygram Intl technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Moneygram Intl's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Moneygram Intl's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Moneygram Intl Implied Volatility

Moneygram Intl's implied volatility exposes the market's sentiment of Moneygram Intl stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Moneygram Intl's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Moneygram Intl stock will not fluctuate a lot when Moneygram Intl's options are near their expiration.

The Bottom Line

While some other companies within the credit services industry are still a little expensive, even after the recent corrections, Moneygram Intl may offer a potential longer-term growth to stockholders. To summarize, as of the 5th of December 2021, our overall 90 days buy-sell recommendation on the company is Cautious Hold. We believe Moneygram Intl is currently undervalued with close to average chance of financial distress for the next two years.

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Editorial Staff

Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. View Profile
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Moneygram Int. Please refer to our Terms of Use for any information regarding our disclosure principles.

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