Morgan Stanley (NYSE:MS) stock is down 1.8% to trade at $82.50 before the bell, after Atlantic Equities downgraded the banking giant to "neutral" from "overweight." The analyst also cut its price target to $85 from $95, citing decreased investment banking activity, a pullback in equity markets, trading estimates that they feel "remain too optimistic," and a lack of near-term positive catalysts. In addition, Oppenheimer also cut its price target from $99 to $93.
There's plenty of room for even more brokerages to move in with bear notes as well. Coming into today, eight covering firms still rated Morgan Stanley stock a "strong buy," and the 12-month consensus target price of $94.87 is a 14.8% premium to last night's close.
The options pits have flashed a penchant for bearish bets in recent weeks. Data at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows the MS sports a 50-day put/call volume ratio of 1.11, which stands higher than 98% of readings from the past year. This means puts are not only outpacing calls, but they've also been getting picked up at a quicker-than-usual clip.
It's worth noting that Morgan Stanley stock ranks low on the Schaeffer's Volatility Scorecard (SVS), with a score of just 13 out of 100. In other words, the security has consistently realized lower volatility than its options have priced in, making the stock a potential premium-selling candidate.
On the charts, Morgan Stanley stock's 320-day moving average rejected a mid-August rally just above the $92 level. By mid-September, this tumble sent the shares below the $84 mark and the 60-day trendline, the latter of which capped yesterday's 4.5% gain. As such, MS stands 14.5% lower year-to-date.
Before you make your next trade, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.
Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.
They believe these five stocks are the five best companies for investors to buy now...
See The Five Stocks Here
Just getting into the stock market? These 10 simple stocks can help beginning investors build long-term wealth without knowing options, technicals, or other advanced strategies.
Get This Free Report
