NEW YORK (TheStreet) -- Moneygram International (MGI) stock is plummeting on Thursday after retail giant Walmart (WMT) announced exclusive money transfer service Walmart-2-Walmart. The world's largest retailer said the service, similar to Moneygram's, will bring lower fees and simplicity to the money transfer market.
"After listening to our customers complain about the high fees and confusion associated with transferring money, we knew there had to be a solution," said Walmart U.S. VP of services Daniel Eckert.
From April 24, Walmart will roll out the service to more than 4,000 stores nationwide offering transfers with fees up to 50% less than similar offerings.
By midafternoon, shares of Moneygram had taken off 16.6% to $15.01. Trading volume of 2.3 million was more than six times its three-month daily average.
TheStreet Ratings team rates MONEYGRAM INTERNATIONAL INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate MONEYGRAM INTERNATIONAL INC (MGI) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the stock has experienced relatively poor performance when compared with the S&P 500 during the past year."