Morgan Stanley (NYSE:MS) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded Morgan Stanley from “strong buy” to “hold.” Despite the downgrade, analysts’ overall consensus remains “Moderate Buy,” with an average price target of $222.85.
• Morgan Stanley reported quarterly EPS of $3.46, surpassing estimates of $2.89, while revenue rose 27.1% year over year to $21.35 billion.
• The company authorized a $20 billion share-repurchase program, allowing it to buy back up to 5.6% of outstanding shares; institutional investors own 84.19% of the stock.

Morgan Stanley (NYSE:MS - Get Free Report) was downgraded by equities researchers at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued on Wednesday, Zacks reports.

A number of other brokerages have also recently issued reports on MS. Wells Fargo & Company cut their target price on shares of Morgan Stanley from $240.00 to $223.00 and set an "equal weight" rating for the company in a research report on Friday, September 25th. Jefferies Financial Group upgraded Morgan Stanley from a "hold" rating to a "strong-buy" rating in a report on Tuesday, July 7th. Oppenheimer lowered Morgan Stanley from a "market perform" rating to an "underperform" rating in a research report on Tuesday, June 30th. HSBC lifted their price target on shares of Morgan Stanley from $215.00 to $219.00 and gave the company a "hold" rating in a research report on Monday. Finally, Freedom Capital raised Morgan Stanley from a "hold" rating to a "strong-buy" rating in a research report on Friday, July 17th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $222.85.

Morgan Stanley Trading Down 0.1%

Shares of Morgan Stanley stock opened at $187.94 on Wednesday. The company's fifty day moving average is $210.05 and its two-hundred day moving average is $201.75. Morgan Stanley has a 1 year low of $151.84 and a 1 year high of $232.25. The company has a debt-to-equity ratio of 3.65, a quick ratio of 0.79 and a current ratio of 0.79. The company has a market capitalization of $296.43 billion, a P/E ratio of 15.19, a PEG ratio of 1.34 and a beta of 1.22.

Morgan Stanley (NYSE:MS - Get Free Report) last announced its quarterly earnings data on Wednesday, July 15th. The financial services provider reported $3.46 EPS for the quarter, topping analysts' consensus estimates of $2.89 by $0.57. Morgan Stanley had a net margin of 15.65% and a return on equity of 19.31%. The company had revenue of $21.35 billion during the quarter, compared to the consensus estimate of $19.67 billion. During the same quarter in the prior year, the firm earned $2.13 EPS. Morgan Stanley's quarterly revenue was up 27.1% on a year-over-year basis. Analysts forecast that Morgan Stanley will post 12.77 earnings per share for the current year.

Morgan Stanley announced that its board has authorized a share repurchase program on Wednesday, June 24th that permits the company to repurchase $20.00 billion in shares. This repurchase authorization permits the financial services provider to purchase up to 5.6% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company's board of directors believes its stock is undervalued.

Institutional Investors Weigh In On Morgan Stanley

Institutional investors and hedge funds have recently modified their holdings of the stock. Marquette Asset Management LLC increased its stake in Morgan Stanley by 143.4% in the 2nd quarter. Marquette Asset Management LLC now owns 129 shares of the financial services provider's stock valued at $27,000 after buying an additional 76 shares during the period. Atlatl Advisers LLC bought a new position in Morgan Stanley during the second quarter valued at about $28,000. Hughes Financial Services LLC lifted its holdings in Morgan Stanley by 55.7% in the 2nd quarter. Hughes Financial Services LLC now owns 137 shares of the financial services provider's stock worth $29,000 after purchasing an additional 49 shares during the last quarter. Purpose Unlimited Inc. acquired a new stake in shares of Morgan Stanley in the fourth quarter worth $25,000. Finally, Security National Bank of SO Dak bought a new stake in Morgan Stanley during the second quarter valued at about $31,000. 84.19% of the stock is owned by institutional investors and hedge funds.

Morgan Stanley News Summary

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

• Positive Sentiment: Upcoming earnings expectations remain solid. Morgan Stanley is scheduled to report third-quarter results on October 14, with analysts expecting approximately $3.10 in EPS and $20.52 billion in revenue. The estimates provide a potential catalyst if the company benefits from resilient wealth-management activity, trading and investment-banking revenue. Morgan Stanley earnings analyst forecasts
• Positive Sentiment: Digital-asset and event-contract initiatives add strategic upside. Morgan Stanley is reportedly testing blockchain-based products through a Digital Asset Lab, including stablecoins, tokenized deposits and money-market funds. The firm is also exploring an event-contract market, potentially expanding its product offering, though these initiatives are still developmental. Morgan Stanley tests DeFi vaults
• Neutral Sentiment: Reported UBS combination talks create both opportunity and uncertainty. Morgan Stanley is reportedly exploring a potential combination with UBS amid pressure on the Swiss bank to strengthen its capital position. Such a transaction could create significant scale, but the reports are unconfirmed and any deal would face substantial regulatory, capital and execution risks. Morgan Stanley UBS merger talks
• Negative Sentiment: Investment-banking sentiment may be weighing on the stock. Morgan Stanley-related coverage cited an AI IPO pricing below its expected range, which may reinforce concerns about IPO and deal-market conditions. Separately, commentary suggested the stock may already reflect the benefits of its Dallas hub investment, limiting the impact of that expansion as a fresh catalyst. Morgan Stanley stocks fall as AI IPO prices below range

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.

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