Traders Purchase High Volume of Call Options on Morgan Stanley (NYSE:MS)

Morgan Stanley (NYSE:MS) saw some unusual options trading on Thursday. Stock investors acquired 40,133 call options on the company. This represents an increase of approximately 123% compared to the typical volume of 18,021 call options.

Morgan Stanley Stock Performance

Morgan Stanley stock traded up $6.87 during mid-day trading on Thursday, reaching $210.00. 6,830,673 shares of the company were exchanged, compared to its average volume of 6,626,780. Morgan Stanley has a twelve month low of $136.17 and a twelve month high of $232.25. The firm’s 50-day simple moving average is $214.92 and its two-hundred day simple moving average is $190.50. The company has a debt-to-equity ratio of 3.52, a quick ratio of 0.77 and a current ratio of 0.77. The firm has a market cap of $331.22 billion, a PE ratio of 16.98, a price-to-earnings-growth ratio of 1.50 and a beta of 1.23.

Morgan Stanley (NYSE:MS) last released its earnings results on Wednesday, July 15th. The financial services provider reported $3.46 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.89 by $0.57. Morgan Stanley had a return on equity of 19.51% and a net margin of 15.65%.The business had revenue of $21.35 billion for the quarter, compared to analyst estimates of $19.67 billion. During the same quarter in the previous year, the company posted $2.13 earnings per share. The company’s revenue for the quarter was up 27.1% compared to the same quarter last year. Equities analysts predict that Morgan Stanley will post 12.78 earnings per share for the current fiscal year.

Morgan Stanley Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 14th. Investors of record on Friday, July 31st will be given a $1.15 dividend. This is a positive change from Morgan Stanley’s previous quarterly dividend of $1.00. The ex-dividend date is Friday, July 31st. This represents a $4.60 dividend on an annualized basis and a yield of 2.2%. Morgan Stanley’s payout ratio is 32.34%.

Morgan Stanley declared that its Board of Directors has initiated a stock repurchase plan on Wednesday, June 24th that permits the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization permits the financial services provider to repurchase up to 5.6% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board believes its stock is undervalued.

Trending Headlines about Morgan Stanley

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

• Positive Sentiment: Options activity was unusually bullish: traders purchased 40,133 MS call options, more than double the average daily call volume of 18,021. While options activity can be speculative, the surge suggests increased short-term investor interest in further upside.
• Positive Sentiment: Erste Group Bank raised its Morgan Stanley EPS forecasts to $12.82 for fiscal 2026 and $13.65 for fiscal 2027, above consensus estimates of $12.78 and $12.68, respectively. Erste maintained a Buy rating, reinforcing the view that earnings momentum may continue.
• Positive Sentiment: Morgan Stanley Investment Management launched Ethereum and Solana exchange-traded products, MSSE and MSOL, each with a 0.14% expense ratio. The products will stake portions of their holdings and pass rewards to investors, expanding Morgan Stanley’s asset-management and crypto offerings beyond its existing Bitcoin product. Morgan Stanley launches Ethereum and Solana ETPs
• Positive Sentiment: The company’s latest reported quarter showed strong operating momentum: adjusted EPS of $3.46 exceeded estimates by $0.57, while revenue of $21.35 billion surpassed expectations and grew 27.1% year over year.
• Neutral Sentiment: Morgan Stanley highlighted two “Strong Buy” quality stocks for volatile markets, reflecting its research franchise and investor positioning. The commentary is supportive of the firm’s market presence but does not directly change Morgan Stanley’s earnings outlook. Morgan Stanley picks two Strong Buy quality stocks
• Negative Sentiment: A Wall Street Journal report alleged that some Morgan Stanley mortgage bankers were pressured to approve mortgages for wealthy clients. If substantiated, the claims could create regulatory, legal and reputational risks, although the immediate financial impact remains unclear. Morgan Stanley mortgage approval allegations

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on MS. The Goldman Sachs Group increased their price objective on Morgan Stanley from $211.00 to $233.00 and gave the company a “neutral” rating in a report on Monday, July 6th. Rothschild & Co Redburn upped their price target on shares of Morgan Stanley from $183.00 to $195.00 and gave the company a “neutral” rating in a research report on Thursday, June 25th. Argus increased their price target on shares of Morgan Stanley from $210.00 to $225.00 and gave the stock a “buy” rating in a research note on Thursday, April 16th. Wolfe Research lowered their price objective on shares of Morgan Stanley from $221.00 to $197.00 and set an “outperform” rating on the stock in a research report on Wednesday, April 1st. Finally, Weiss Ratings restated a “buy (b-)” rating on shares of Morgan Stanley in a research note on Thursday, July 2nd. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $224.50.

Institutional Trading of Morgan Stanley

Hedge funds have recently made changes to their positions in the company. Purpose Unlimited Inc. acquired a new position in shares of Morgan Stanley during the fourth quarter worth about $25,000. Motiv8 Investments LLC acquired a new stake in Morgan Stanley in the fourth quarter valued at about $25,000. Marquette Asset Management LLC lifted its position in Morgan Stanley by 143.4% in the second quarter. Marquette Asset Management LLC now owns 129 shares of the financial services provider’s stock valued at $27,000 after purchasing an additional 76 shares during the period. Lodestone Wealth Management LLC purchased a new stake in Morgan Stanley in the 4th quarter valued at approximately $28,000. Finally, Atlatl Advisers LLC purchased a new stake in Morgan Stanley in the 2nd quarter valued at approximately $28,000. Institutional investors and hedge funds own 84.19% of the company’s stock.

About Morgan Stanley

Morgan Stanley (NYSE: MS) is a global financial services firm headquartered in New York City. Founded in 1935 by Henry S. Morgan and Harold Stanley, the company provides a broad range of investment banking, securities, wealth management and investment management services to corporations, governments, institutions and individual investors. Leadership has been guided by a senior executive team and board of directors; James P. Gorman has served as the company’s chief executive and chairman in recent years.

The firm’s primary business activities are organized around three principal businesses: Institutional Securities, Wealth Management and Investment Management.