Cinctive Capital Management LP Boosts Stake in Morgan Stanley $MS

Key Points

• Cinctive Capital Management LP dramatically increased its Morgan Stanley stake by 6,003.3% in the fourth quarter, ending with 80,991 shares valued at about $14.4 million.
• Morgan Stanley reported strong quarterly results, with earnings per share of $3.43 beating estimates and revenue rising 16% year over year to $20.58 billion.
• The stock has also drawn supportive analyst coverage, with a consensus rating of “Moderate Buy” and an average price target of $206.35, while the company continues paying a $1.00 quarterly dividend.

Cinctive Capital Management LP increased its position in Morgan Stanley (NYSE:MS - Free Report) by 6,003.3% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 80,991 shares of the financial services provider's stock after buying an additional 79,664 shares during the period. Morgan Stanley accounts for about 0.8% of Cinctive Capital Management LP's investment portfolio, making the stock its 27th biggest position. Cinctive Capital Management LP's holdings in Morgan Stanley were worth $14,378,000 at the end of the most recent reporting period.

A number of other hedge funds also recently made changes to their positions in the company. Concentric Capital Strategies LP purchased a new stake in shares of Morgan Stanley in the fourth quarter worth about $13,239,000. Aureus Asset Management LLC lifted its position in shares of Morgan Stanley by 0.3% in the fourth quarter. Aureus Asset Management LLC now owns 56,957 shares of the financial services provider's stock worth $10,112,000 after buying an additional 154 shares in the last quarter. Bamco Inc. NY purchased a new stake in shares of Morgan Stanley in the fourth quarter worth about $1,172,000. Banco Bilbao Vizcaya Argentaria S.A. lifted its position in shares of Morgan Stanley by 81.8% in the fourth quarter. Banco Bilbao Vizcaya Argentaria S.A. now owns 293,552 shares of the financial services provider's stock worth $52,245,000 after buying an additional 132,122 shares in the last quarter. Finally, Basso Capital Management L.P. purchased a new stake in shares of Morgan Stanley in the fourth quarter worth about $79,000. 84.19% of the stock is currently owned by hedge funds and other institutional investors.

Morgan Stanley Trading Up 2.0%

Shares of MS opened at $225.32 on Thursday. Morgan Stanley has a twelve month low of $129.93 and a twelve month high of $228.07. The company has a market cap of $355.39 billion, a P/E ratio of 20.41, a P/E/G ratio of 1.66 and a beta of 1.23. The company has a current ratio of 0.77, a quick ratio of 0.77 and a debt-to-equity ratio of 3.52. The company's fifty day simple moving average is $197.03 and its 200-day simple moving average is $182.11.

Morgan Stanley (NYSE:MS - Get Free Report) last announced its earnings results on Wednesday, April 15th. The financial services provider reported $3.43 earnings per share for the quarter, beating the consensus estimate of $3.02 by $0.41. Morgan Stanley had a net margin of 14.65% and a return on equity of 17.70%. The business had revenue of $20.58 billion for the quarter, compared to the consensus estimate of $19.23 billion. During the same quarter in the prior year, the firm posted $2.60 earnings per share. The business's revenue for the quarter was up 16.0% on a year-over-year basis. As a group, analysts expect that Morgan Stanley will post 11.87 EPS for the current year.

Morgan Stanley Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Thursday, April 30th were paid a $1.00 dividend. The ex-dividend date of this dividend was Thursday, April 30th. This represents a $4.00 annualized dividend and a dividend yield of 1.8%. Morgan Stanley's dividend payout ratio is currently 36.23%.

Trending Headlines about Morgan Stanley

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

• Positive Sentiment: MS was highlighted in a Zacks note as a “top growth stock for the long term,” reinforcing the market’s growth narrative around Morgan Stanley. Why Morgan Stanley (MS) is a Top Growth Stock for the Long-Term
• Positive Sentiment: Large U.S. banks were broadly strong as investors waited for the Fed meeting, and Morgan Stanley was specifically mentioned among the bank stocks hitting records. Big Bank Stocks Hit Records Ahead of Fed Meeting
• Neutral Sentiment: Recent performance data show Morgan Stanley has already been benefiting from strong earnings, with the latest quarter beating expectations on both EPS and revenue, which supports the stock’s momentum but is not a fresh catalyst.
• Neutral Sentiment: Analyst views remain constructive overall, including Morgan Stanley’s own overweight rating and several higher price targets across the Street, which helps underpin valuation expectations.

Insider Transactions at Morgan Stanley

In other news, insider Andrew M. Saperstein sold 51,668 shares of the stock in a transaction that occurred on Thursday, April 16th. The stock was sold at an average price of $188.59, for a total value of $9,744,068.12. Following the sale, the insider directly owned 282,142 shares in the company, valued at approximately $53,209,159.78. This represents a 15.48% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Daniel A. Simkowitz sold 14,690 shares of the stock in a transaction that occurred on Friday, April 17th. The stock was sold at an average price of $189.24, for a total value of $2,779,935.60. Following the completion of the sale, the insider owned 365,802 shares in the company, valued at approximately $69,224,370.48. The trade was a 3.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 77,476 shares of company stock worth $14,644,762. 0.17% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

MS has been the topic of a number of research analyst reports. BMO Capital Markets boosted their target price on Morgan Stanley from $190.00 to $220.00 and gave the stock an "outperform" rating in a research report on Monday, April 20th. Rothschild & Co Redburn boosted their target price on Morgan Stanley from $171.00 to $183.00 and gave the stock a "neutral" rating in a research report on Friday, April 17th. Citizens Jmp reiterated a "market perform" rating on shares of Morgan Stanley in a research report on Thursday, April 16th. Keefe, Bruyette & Woods boosted their target price on Morgan Stanley from $210.00 to $218.00 and gave the stock an "outperform" rating in a research report on Thursday, April 16th. Finally, Dbs Bank upped their price objective on Morgan Stanley from $185.00 to $220.00 in a research report on Thursday, May 7th. Twelve investment analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. According to data from MarketBeat.com, Morgan Stanley presently has a consensus rating of "Moderate Buy" and a consensus price target of $206.35.

Morgan Stanley Company Profile

Morgan Stanley NYSE: MS is a global financial services firm headquartered in New York City. Founded in 1935 by Henry S. Morgan and Harold Stanley, the company provides a broad range of investment banking, securities, wealth management and investment management services to corporations, governments, institutions and individual investors. Leadership has been guided by a senior executive team and board of directors; James P. Gorman has served as the company's chief executive and chairman in recent years.

The firm's primary business activities are organized around three principal businesses: Institutional Securities, Wealth Management and Investment Management.

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