Cheviot Value Management LLC Makes New Investment in Morgan Stanley (NYSE:MS)

Key Points

• Cheviot Value Management LLC acquired a new stake in Morgan Stanley, purchasing 3,375 shares valued at approximately $404,000 during the first quarter.
• Morgan Stanley recently increased its quarterly dividend from $0.93 to $1.00, representing an annualized dividend of $4.00 with a yield of 2.9%.
• Wells Fargo raised its price target on Morgan Stanley's stock from $120.00 to $145.00, with an "equal weight" rating, while multiple analysts have issued various ratings for the stock.

Cheviot Value Management LLC purchased a new position in shares of Morgan Stanley (NYSE:MS - Free Report) in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm purchased 3,375 shares of the financial services provider's stock, valued at approximately $404,000.

A number of other institutional investors and hedge funds have also recently modified their holdings of MS. Minot DeBlois Advisors LLC purchased a new position in Morgan Stanley during the 4th quarter worth $25,000. MorganRosel Wealth Management LLC acquired a new position in shares of Morgan Stanley in the 1st quarter valued at about $27,000. Garde Capital Inc. acquired a new position in shares of Morgan Stanley in the 1st quarter valued at about $30,000. Ancora Advisors LLC lifted its holdings in shares of Morgan Stanley by 104.7% in the 4th quarter. Ancora Advisors LLC now owns 264 shares of the financial services provider's stock valued at $33,000 after buying an additional 135 shares during the period. Finally, Hopwood Financial Services Inc. lifted its holdings in shares of Morgan Stanley by 50.0% in the 1st quarter. Hopwood Financial Services Inc. now owns 264 shares of the financial services provider's stock valued at $31,000 after buying an additional 88 shares during the period. 84.19% of the stock is owned by institutional investors.

Morgan Stanley Trading Up 0.3%

Shares of MS stock traded up $0.36 on Thursday, reaching $141.66. 1,144,412 shares of the stock were exchanged, compared to its average volume of 6,769,076. The stock has a market cap of $226.13 billion, a P/E ratio of 16.04, a price-to-earnings-growth ratio of 1.76 and a beta of 1.32. The company has a quick ratio of 0.78, a current ratio of 0.78 and a debt-to-equity ratio of 3.30. The firm has a 50 day moving average of $137.68 and a two-hundred day moving average of $128.45. Morgan Stanley has a 1-year low of $92.78 and a 1-year high of $145.48.

Morgan Stanley (NYSE:MS - Get Free Report) last issued its earnings results on Wednesday, July 16th. The financial services provider reported $2.13 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.98 by $0.15. The business had revenue of $16.79 billion for the quarter, compared to analyst estimates of $16.15 billion. Morgan Stanley had a net margin of 13.06% and a return on equity of 15.20%. The company's revenue for the quarter was up 11.8% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.82 EPS. On average, research analysts anticipate that Morgan Stanley will post 8.56 EPS for the current year.

Morgan Stanley Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 15th. Stockholders of record on Thursday, July 31st will be issued a $1.00 dividend. This represents a $4.00 annualized dividend and a dividend yield of 2.8%. This is a boost from Morgan Stanley's previous quarterly dividend of $0.93. The ex-dividend date is Thursday, July 31st. Morgan Stanley's payout ratio is 45.30%.

Morgan Stanley announced that its board has initiated a stock repurchase program on Tuesday, July 1st that authorizes the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization authorizes the financial services provider to purchase up to 8.9% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.

Analyst Ratings Changes

MS has been the topic of a number of recent analyst reports. The Goldman Sachs Group increased their price target on Morgan Stanley from $121.00 to $136.00 and gave the stock a "neutral" rating in a research report on Tuesday, June 10th. JPMorgan Chase & Co. reduced their target price on Morgan Stanley from $125.00 to $122.00 and set a "neutral" rating for the company in a report on Monday, April 14th. Keefe, Bruyette & Woods raised Morgan Stanley from a "market perform" rating to an "outperform" rating and increased their target price for the company from $127.00 to $160.00 in a report on Wednesday, July 9th. Wells Fargo & Company increased their target price on Morgan Stanley from $120.00 to $145.00 and gave the company an "equal weight" rating in a report on Tuesday, July 8th. Finally, Citigroup reaffirmed a "neutral" rating and issued a $130.00 price target (up previously from $125.00) on shares of Morgan Stanley in a report on Wednesday, June 18th. Nine equities research analysts have rated the stock with a hold rating, five have assigned a buy rating and one has given a strong buy rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $138.25.

Insiders Place Their Bets

In related news, insider Michael A. Pizzi sold 18,000 shares of the firm's stock in a transaction that occurred on Thursday, July 17th. The shares were sold at an average price of $140.62, for a total transaction of $2,531,160.00. Following the completion of the sale, the insider directly owned 136,407 shares in the company, valued at approximately $19,181,552.34. This trade represents a 11.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Sharon Yeshaya sold 25,583 shares of the company's stock in a transaction that occurred on Thursday, July 17th. The shares were sold at an average price of $139.81, for a total transaction of $3,576,759.23. Following the completion of the sale, the chief financial officer owned 128,662 shares of the company's stock, valued at approximately $17,988,234.22. This trade represents a 16.59% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 148,149 shares of company stock valued at $20,841,628. 0.19% of the stock is currently owned by insiders.

About Morgan Stanley

Morgan Stanley, a financial holding company, provides various financial products and services to corporations, governments, financial institutions, and individuals in the Americas, Europe, the Middle East, Africa, and Asia. It operates through Institutional Securities, Wealth Management, and Investment Management segments.