MoneyGram Downgraded By JPMorgan After Rising 15%; Brexit Issues Remain


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


JPMorgan has downgraded Moneygram International Inc

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(NASDAQ: MGI) to Neutral from Overweight after the shares rose 15 percent since the last earnings report.

"[S]hares have hovered at the $7 level over the last month, but up ~15 percent since last earnings print, despite mixed news flow that we think could keep the stock range bound in the foreseeable future; hence, we are downgrading shares to Neutral and maintain our $8 PT," analyst Tien-tsin Huang wrote in a note.

On one hand, MoneyGram renewed its largest agent — Wal-Mart Stores, Inc. (NYSE: WMT) — on May 25, but separately Wal-Mex struck a deal with rival The Western Union Company (NYSE: WU) as a sign that exclusivity is less common.

More broadly, Brexit uncertainty could weigh more on money transfer stocks because of a higher mix of international business, given 45 percent of Moneygram's revenue stems from non-U.S. locations.

Shares of MoneyGram closed Monday's regular trading session at $7.09. In the pre-market hours Tuesday, shares were down 1.69 percent to $6.97 at time of writing.

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27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Posted In: Analyst ColorNewsDowngradesPrice TargetForexMarketsAnalyst RatingsMoversJPMorganTien-tsin HuangWal-Mex