NEW YORK (TheStreet) -- Moneygram International (MGI) shares are down -12.2% to $13.00 today following last week's announcement of Walmart's (WMT) "Walmat-2-Walmart Money Transfer Service".
Previously, Moneygram was the fund transfer service used in Walmart stores.
However, with Walmart planning to offer the service themselves and cut out the middle man -- Walmart's price point is 25 cents and $2 cheaper than Monegrams current under-$50 and over-$200 pricing structure respectively-- Moneygram shares are taking a hit.
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Walmart's service is set to go online April 24.
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."
Highlights from the analysis by TheStreet Ratings Team goes as follows: