MoneyGram International, Inc. (NASDAQ: MGI) today reported financial results for its Q1, 2020. And the results are pretty much great all the way to March 15 (pre-coronavirus period).
According to MoneyGram SEC filling their digital transaction growth accelerated to 57% YoY, “marking a continued acceleration from the fourth quarter 2019. Performance was driven by market expansion, high customer retention rates, and strong demand for the MoneyGram app”.
A Post-COVID-19 period, Mar. 16 – Mar. 31 ,shows a 18% decline in all channels (digital and walk-in combined), while digital channel skyrocketed 58% in post covid period.
“We were encouraged by the strong start to the quarter with transaction growth in all channels accelerating from the fourth quarter. The pandemic caused sudden and significant global disruption and MoneyGram certainly was not immune. At the onset of COVID-19, our Walk-In Channel experienced a significant downturn, while in contrast, our Digital Channel continued its positive momentum as consumers increasingly value the ease and convenience of our leading offerings.”-said MoneyGram Chairman and CEO Alex Holmes
Shares of Moneygram International Inc (NASDAQ: MGI) lost almost 50% since February 19 (the day when MGI stock hit this year high) and closed at $1.66 on Thursday.
We expect a small bounce-back after this report but not a huge one as MGI stock is on a constant decline for the last 3 years. Right after this small bounce MGI will continue to fall until something positive happens. What to do with MGI after this? If you are holding it, try to be patient and see if it will hit $2.00 and then sell it.
We think that the MGI share price will lose even more value so you might want to wait a bit before spending your hard earned cash on MGI.