Banking, finance, and taxes
Will MoneyGram Get a Fair Price From Western Union?
Published:
MoneyGram International Inc. (NASDAQ: MGI) shares jumped on Tuesday after it was reported that there was a potential takeover in the works by Western Union Co. (NYSE: WU). The takeover is still said to be under discussion, and no purchase price was reported.
Ultimately, this acquisition would combine the two of the largest money transfer services in the United States. Some are saying that this will help shore up the offerings by both companies, which have been steadily declining in light of direct online payments through banks and apps like PayPal or Venmo.
So what would Western Union be willing to pay for MoneyGram?
Right now, the consensus analyst price target for MoneyGram is $1.00, well below the most recent closing price of $2.59. This would be a very had sell by Western Union, and highly unlikely.
MoneyGram stock has a 50-day moving average price of $1.61 and a 200-day moving average price of $2.73. While a price somewhere between these would be somewhat reasonable, the large drop off in price as the result of COVID-19 still has to be contended with.
MoneyGram’s stock has been recovering from its lows in April, and this positive momentum out of this crisis probably deservers a premium valuation.
MoneyGram stock traded up about 40% Tuesday at $3.63, in a 52-week range of $1.15 to $6.70. The consensus price target is $1.00.
Western Union stock was up about 12% at $23.26. It has a 52-week range of $17.39 to $28.45, and a consensus price target of $20.07.
24/7 Wall St.Travel Cards Are Getting Too Good To Ignore
Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.
We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.
It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.
We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
