Morgan Stanley (NYSE:MS) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on Morgan Stanley, with 12 buy, three strong-buy, 10 hold and one sell rating among 26 firms. The average 12-month price target is $224.75.
• Morgan Stanley’s latest quarter exceeded expectations, with EPS of $3.46 versus $2.89 expected and revenue of $21.35 billion, up 27.1% year over year.
• The company raised its quarterly dividend to $1.15 per share, implying a 2.1% yield, and authorized a $20 billion share-buyback program covering up to 5.6% of outstanding shares.

Morgan Stanley (NYSE:MS - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the twenty-six research firms that are currently covering the company, MarketBeat Ratings reports. One research analyst has rated the stock with a sell rating, ten have assigned a hold rating, twelve have issued a buy rating and three have given a strong buy rating to the company. The average 1 year price target among brokers that have covered the stock in the last year is $224.75.

MS has been the subject of several analyst reports. JPMorgan Chase & Co. increased their price objective on Morgan Stanley from $187.00 to $195.00 and gave the company a "neutral" rating in a report on Thursday, July 16th. Citigroup boosted their target price on Morgan Stanley from $220.00 to $235.00 and gave the stock a "neutral" rating in a research note on Friday, July 17th. Royal Bank Of Canada restated a "sector perform" rating and set a $243.00 price target on shares of Morgan Stanley in a research note on Monday, July 20th. CICC Research upped their price objective on shares of Morgan Stanley from $175.00 to $200.00 and gave the company an "outperform" rating in a report on Tuesday, May 19th. Finally, Freedom Capital raised shares of Morgan Stanley from a "hold" rating to a "strong-buy" rating in a report on Friday, July 17th.

Key Headlines Impacting Morgan Stanley

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

• Positive Sentiment: Morgan Stanley highlighted an estimated $80 billion opportunity for Tesla’s electric and autonomous Semi trucks, supported by record diesel prices. The research reinforces the firm’s position in high-profile growth themes and may support sentiment toward its advisory and research businesses. Morgan Stanley Sees $80 Billion Tesla Semi Opportunity
• Positive Sentiment: Morgan Stanley remains part of a group of large investment banks viewed as attractively valued after strong six-month gains, with analysts citing potential support from investment banking, trading and wealth-management activity. 4 Thriving Investment Bank Behemoths to Buy With Attractive Valuation
• Positive Sentiment: Morgan Stanley’s collaboration with OpenAI on ChatGPT for financial services gives the company an opportunity to improve advisor productivity and client service while strengthening its technology positioning among major banks. OpenAI Courts Wall Street With ChatGPT for Financial Services
• Neutral Sentiment: The stock’s recent pullback relative to the broader market has drawn attention, but the company’s latest quarterly results remain a strong fundamental backdrop: earnings and revenue exceeded expectations, while revenue rose 27.1% year over year. Morgan Stanley Sees a More Significant Dip Than Broader Market
• Negative Sentiment: Morgan Stanley’s cautious view of the sportswear industry—citing fragmentation, heavy promotions and weak consumer sponsorship—could weigh modestly on sentiment toward its research and sector-exposure businesses, although it is not a direct company earnings catalyst. Morgan Stanley’s Preferred Sportswear Stock

Morgan Stanley Trading Up 0.8%

NYSE MS opened at $214.41 on Friday. Morgan Stanley has a 52 week low of $151.84 and a 52 week high of $232.25. The company has a 50 day moving average price of $216.01 and a 200 day moving average price of $198.13. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 3.65. The firm has a market cap of $338.18 billion, a PE ratio of 17.33, a price-to-earnings-growth ratio of 1.47 and a beta of 1.21.

Morgan Stanley (NYSE:MS - Get Free Report) last announced its earnings results on Wednesday, July 15th. The financial services provider reported $3.46 earnings per share for the quarter, beating the consensus estimate 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 period last year, the firm earned $2.13 earnings per share. Morgan Stanley's revenue was up 27.1% compared to the same quarter last year. As a group, sell-side analysts forecast that Morgan Stanley will post 12.8 EPS for the current fiscal year.

Morgan Stanley Increases Dividend

The company 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 of this dividend was Friday, July 31st. This represents a $4.60 dividend on an annualized basis and a yield of 2.1%. This is an increase from Morgan Stanley's previous quarterly dividend of $1.00. Morgan Stanley's payout ratio is presently 37.19%.

Morgan Stanley announced that its board has authorized a stock buyback plan on Wednesday, June 24th that permits the company to buyback $20.00 billion in outstanding shares. This buyback authorization permits the financial services provider to reacquire up to 5.6% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's board believes its shares are undervalued.

Hedge Funds Weigh In On Morgan Stanley

Hedge funds and other institutional investors have recently bought and sold shares of the business. Crown Wealth Group LLC boosted its holdings in Morgan Stanley by 3.2% in the second quarter. Crown Wealth Group LLC now owns 1,532 shares of the financial services provider's stock valued at $320,000 after purchasing an additional 48 shares during the last quarter. Hughes Financial Services LLC raised its stake in shares of Morgan Stanley by 55.7% during the 2nd quarter. Hughes Financial Services LLC now owns 137 shares of the financial services provider's stock valued at $29,000 after buying an additional 49 shares during the last quarter. Evolution Wealth Management Inc. lifted its holdings in shares of Morgan Stanley by 35.7% in the 2nd quarter. Evolution Wealth Management Inc. now owns 194 shares of the financial services provider's stock valued at $41,000 after buying an additional 51 shares during the period. Financial Management Professionals Inc. boosted its stake in shares of Morgan Stanley by 0.6% in the second quarter. Financial Management Professionals Inc. now owns 8,245 shares of the financial services provider's stock worth $1,724,000 after buying an additional 52 shares during the last quarter. Finally, Bank OZK boosted its stake in shares of Morgan Stanley by 3.0% in the second quarter. Bank OZK now owns 1,815 shares of the financial services provider's stock worth $379,000 after buying an additional 53 shares during the last quarter. 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 company that provides investment banking, securities, wealth management and investment management services. The company serves corporations, governments, financial institutions, individuals and institutional investors through a range of advisory, capital-raising, trading and investment-related activities.

Morgan Stanley's Institutional Securities business offers investment banking services, including mergers and acquisitions advice, underwriting and capital markets services.

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