Baird Financial Group Inc. Has $68.39 Million Holdings in Morgan Stanley $MS

Key Points

• Baird Financial Group increased its Morgan Stanley stake by 5% in the second quarter, bringing its holdings to 327,172 shares valued at approximately $68.39 million. Institutional investors and hedge funds collectively own 84.19% of Morgan Stanley.
• Morgan Stanley reported strong quarterly results, with EPS of $3.46 beating estimates of $2.89 and revenue of $21.35 billion exceeding forecasts while rising 27.1% year over year.
• The company authorized a $20 billion share repurchase program and raised its quarterly dividend to $1.15 per share. Analysts maintain a “Moderate Buy” consensus with an average price target of $224.75, though elevated oil prices, interest rates and valuation remain risks.

Baird Financial Group Inc. increased its position in Morgan Stanley (NYSE:MS - Free Report) by 5.0% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 327,172 shares of the financial services provider's stock after acquiring an additional 15,709 shares during the quarter. Baird Financial Group Inc.'s holdings in Morgan Stanley were worth $68,392,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Financiere des Professionnels Fonds d investissement inc. acquired a new stake in shares of Morgan Stanley during the 1st quarter worth approximately $8,854,000. Diversify Wealth Management LLC increased its position in shares of Morgan Stanley by 201.0% during the first quarter. Diversify Wealth Management LLC now owns 17,559 shares of the financial services provider's stock valued at $2,890,000 after purchasing an additional 11,726 shares during the period. Arsenal Capital Advisors LLC acquired a new position in shares of Morgan Stanley in the fourth quarter valued at $814,000. Intech Investment Management LLC raised its stake in shares of Morgan Stanley by 19.3% in the fourth quarter. Intech Investment Management LLC now owns 71,675 shares of the financial services provider's stock valued at $12,724,000 after purchasing an additional 11,588 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in Morgan Stanley by 0.9% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 9,171,655 shares of the financial services provider's stock worth $1,628,244,000 after purchasing an additional 83,472 shares during the period. Institutional investors and hedge funds own 84.19% of the company's stock.

Morgan Stanley News Roundup

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

• Positive Sentiment: Jim Cramer highlighted Morgan Stanley as a “quiet execution winner” over newer fintech and blockchain companies, providing favorable retail-investor visibility. Jim Cramer backs Morgan Stanley
• Positive Sentiment: Morgan Stanley’s most recent reported quarter showed strong operating momentum: earnings per share of $3.46 beat estimates of $2.89, while revenue of $21.35 billion exceeded the $19.67 billion consensus and increased 27.1% year over year.
• Neutral Sentiment: An opinion article argued that Morgan Stanley may be expensive after its rally, potentially encouraging profit-taking even though the business has delivered strong results. Morgan Stanley valuation commentary
• Negative Sentiment: Morgan Stanley strategist Mike Wilson warned that oil prices above $100 per barrel and elevated interest rates are among the main near-term risks for stocks. Higher rates can pressure financial-sector valuations and raise concerns about economic growth and capital-markets activity. Morgan Stanley warns on oil and rates
• Negative Sentiment: Merrill Lynch recruited an advisory team from Morgan Stanley as part of a broader $1.8 billion advisor move. While unlikely to materially affect near-term earnings, the departure adds a modest competitive and wealth-management retention overhang. Merrill recruits Morgan Stanley advisors

Morgan Stanley Stock Down 0.4%

Shares of NYSE MS opened at $215.45 on Thursday. The stock has a market cap of $339.83 billion, a PE ratio of 17.42, a PEG ratio of 1.49 and a beta of 1.21. The business has a fifty day moving average of $216.04 and a two-hundred day moving average of $197.75. Morgan Stanley has a 52-week low of $151.42 and a 52-week 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.

Morgan Stanley (NYSE:MS - Get Free Report) last posted its earnings results on Wednesday, July 15th. The financial services provider reported $3.46 earnings per share for the quarter, topping the consensus estimate of $2.89 by $0.57. The business had revenue of $21.35 billion for the quarter, compared to analyst estimates of $19.67 billion. Morgan Stanley had a net margin of 15.65% and a return on equity of 19.31%. The firm's quarterly revenue was up 27.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.13 EPS. As a group, equities research analysts expect that Morgan Stanley will post 12.8 earnings per share for the current fiscal year.

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

Morgan Stanley Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 14th. Shareholders of record on Friday, July 31st were paid a dividend of $1.15 per share. 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 2.1%. The ex-dividend date of this dividend was Friday, July 31st. Morgan Stanley's payout ratio is currently 37.19%.

Analysts Set New Price Targets

MS has been the topic of a number of recent research reports. Weiss Ratings upgraded shares of Morgan Stanley from a "buy (b-)" rating to a "buy (b)" rating in a research note on Wednesday, August 5th. CICC Research increased their price objective on shares of Morgan Stanley from $175.00 to $200.00 and gave the company an "outperform" rating in a research note on Tuesday, May 19th. Freedom Capital raised shares of Morgan Stanley from a "hold" rating to a "strong-buy" rating in a report on Friday, July 17th. Rothschild & Co Redburn lifted their target price 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. Finally, Citigroup upped their target price on shares of Morgan Stanley from $220.00 to $235.00 and gave the company a "neutral" rating in a research note on Friday, July 17th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $224.75.

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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