Morgan Stanley (MS) – What Are Researchers Thinking About This Stock?

Shares of Morgan Stanley (NYSE:MS) have been given a consensus recommendation of “Moderate Buy” by the twenty-seven brokerages that are presently covering the company, MarketBeat.com reports. One research analyst has rated the stock with a sell recommendation, thirteen have given a hold recommendation, eleven have given a buy recommendation and two have given a strong buy recommendation to the company. The average 1-year target price among brokers that have updated their coverage on the stock in the last year is $219.43.

Several research analysts have commented on MS shares. Evercore reissued an “outperform” rating on shares of Morgan Stanley in a research note on Monday, July 6th. Erste Group Bank lowered shares of Morgan Stanley from a “buy” rating to a “hold” rating in a report on Thursday. Freedom Capital raised shares of Morgan Stanley from a “hold” rating to a “strong-buy” rating in a research note on Friday, July 17th. JPMorgan Chase & Co. increased their target price on shares of Morgan Stanley from $187.00 to $195.00 and gave the company a “neutral” rating in a report on Thursday, July 16th. Finally, Keefe, Bruyette & Woods lifted their target price on shares of Morgan Stanley from $225.00 to $250.00 and gave the stock an “outperform” rating in a research report on Thursday, July 16th.

Morgan Stanley Stock Performance

Shares of NYSE MS opened at $189.96 on Wednesday. The stock has a market cap of $299.63 billion, a price-to-earnings ratio of 15.36, a P/E/G ratio of 1.26 and a beta of 1.22. The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 3.65. Morgan Stanley has a 1-year low of $151.84 and a 1-year high of $232.25. The stock’s 50-day moving average is $207.53 and its 200 day moving average is $203.03.

Morgan Stanley (NYSE:MS) last released its earnings results on Wednesday, July 15th. The financial services provider reported $3.46 earnings per share for the quarter, topping analysts’ consensus estimates of $2.89 by $0.57. The company had revenue of $21.35 billion during the quarter, compared to the consensus estimate of $19.67 billion. Morgan Stanley had a return on equity of 19.31% and a net margin of 15.65%. Morgan Stanley’s quarterly revenue was up 27.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.13 EPS. On average, sell-side analysts anticipate that Morgan Stanley will post 12.66 EPS for the current fiscal year.

Morgan Stanley announced that its board has initiated a stock repurchase plan on Wednesday, June 24th that allows the company to repurchase $20.00 billion in shares. This buyback authorization allows the financial services provider to buy up to 5.6% of its shares through open market purchases. Stock buyback plans are typically an indication that the company’s management believes its stock is undervalued.

Morgan Stanley Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, August 14th. Shareholders of record on Friday, July 31st were given a dividend of $1.15 per share. The ex-dividend date was Friday, July 31st. This is a positive change from Morgan Stanley’s previous quarterly dividend of $1.00. This represents a $4.60 annualized dividend and a yield of 2.4%. Morgan Stanley’s dividend payout ratio (DPR) is currently 37.19%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Valley Wealth Managers Inc. increased its position in Morgan Stanley by 0.5% during the third quarter. Valley Wealth Managers Inc. now owns 167,020 shares of the financial services provider’s stock valued at $31,413,000 after acquiring an additional 790 shares during the last quarter. Castleview Partners LLC raised its stake in shares of Morgan Stanley by 11.4% in the third quarter. Castleview Partners LLC now owns 4,095 shares of the financial services provider’s stock valued at $770,000 after acquiring an additional 420 shares during the period. Riversedge Advisors LLC lifted its holdings in shares of Morgan Stanley by 10.3% in the 3rd quarter. Riversedge Advisors LLC now owns 1,855 shares of the financial services provider’s stock worth $349,000 after acquiring an additional 173 shares during the last quarter. Wedmont Private Capital lifted its holdings in shares of Morgan Stanley by 9.5% in the 3rd quarter. Wedmont Private Capital now owns 15,935 shares of the financial services provider’s stock worth $2,987,000 after acquiring an additional 1,384 shares during the last quarter. Finally, Journey Retirement Planning & Investment Management LLC lifted its holdings in shares of Morgan Stanley by 11.4% in the 3rd quarter. Journey Retirement Planning & Investment Management LLC now owns 1,638 shares of the financial services provider’s stock worth $308,000 after acquiring an additional 167 shares during the last quarter. 84.19% of the stock is owned by institutional investors.

Key Stories Impacting Morgan Stanley

Here are the key news stories impacting Morgan Stanley this week:

• Positive Sentiment: Options traders purchased approximately 26,930 MS call contracts, well above average call volume, suggesting increased short-term bullish positioning. Morgan Stanley unusual options activity
• Positive Sentiment: Jim Cramer recently backed Morgan Stanley after its pullback, highlighting the company’s buyback authorization and long-term prospects. That commentary may be supporting investor confidence, although it is not a fundamental earnings catalyst. Jim Cramer Backs Morgan Stanley After Its Pullback
• Positive Sentiment: Morgan Stanley’s proposal to convert eight Eaton Vance municipal-bond mutual funds, representing nearly $10 billion in assets, into ETFs could support its asset-management strategy and improve product efficiency if shareholders approve the transactions. Morgan Stanley Municipal Fund ETF Conversions
• Neutral Sentiment: TD Cowen initiated coverage with a Hold rating and a $210 price target, implying potential upside from the reported trading level but signaling that the firm sees balanced risk and reward. TD Cowen Initiates Morgan Stanley Coverage
• Negative Sentiment: Pre-earnings analysis points to a challenging Q3 outlook: higher costs and muted investment-banking deal activity could pressure results, even if trading revenue remains relatively strong. Morgan Stanley Stock Ahead of Q3 Earnings
• Negative Sentiment: Erste Group downgraded Morgan Stanley from Buy to Hold, adding to a more cautious analyst tone ahead of earnings. Erste Group Morgan Stanley Downgrade

Morgan Stanley Company Profile

Morgan Stanley is a global financial services firm serving corporations, governments, financial institutions, individuals and other investors. The company provides investment banking and advisory services, including mergers and acquisitions advice, equity and debt underwriting, securities sales and trading, and corporate lending.

Through its Wealth Management business, Morgan Stanley offers financial planning, brokerage, investment advisory and banking services to individual investors, businesses and institutions.