Cornerstone Planning LLC Acquires Shares of 20,302 Morgan Stanley $MS

Key Points

• Cornerstone Planning LLC opened a new position in Morgan Stanley, buying 20,302 shares valued at about $3.62 million in the fourth quarter. Several other institutional investors also added to MS, and institutions now own 84.19% of the stock.
• Morgan Stanley’s latest earnings beat expectations, with Q1 EPS of $3.43 versus the $3.02 estimate and revenue of $20.58 billion, up 16% year over year. The company also pays a quarterly dividend of $1.00 per share, equal to a 1.8% yield.
• Analysts remain broadly constructive on the stock, with 12 Buy and 12 Hold ratings and a consensus target price of $206.35. Recent insider selling and the stock’s move near its 52-week high suggest some profit-taking even as sentiment stays positive.

Cornerstone Planning LLC bought a new position in Morgan Stanley (NYSE:MS - Free Report) in the 4th quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund bought 20,302 shares of the financial services provider's stock, valued at approximately $3,618,000.

Several other hedge funds and other institutional investors have also recently made changes to their positions in MS. Motiv8 Investments LLC purchased a new position in Morgan Stanley in the 4th quarter worth approximately $25,000. Olistico Wealth LLC purchased a new position in shares of Morgan Stanley in the fourth quarter worth $27,000. Lodestone Wealth Management LLC bought a new position in shares of Morgan Stanley during the fourth quarter valued at $28,000. WFA of San Diego LLC bought a new position in shares of Morgan Stanley during the second quarter valued at $28,000. Finally, Nvest Wealth Strategies Inc. bought a new stake in Morgan Stanley in the 4th quarter worth about $31,000. Institutional investors own 84.19% of the company's stock.

Morgan Stanley Stock Performance

Shares of NYSE MS opened at $223.69 on Friday. The stock has a market cap of $352.82 billion, a PE ratio of 20.26, a price-to-earnings-growth ratio of 1.70 and a beta of 1.23. Morgan Stanley has a 1 year low of $130.90 and a 1 year high of $230.47. The firm has a fifty day moving average price of $199.10 and a 200-day moving average price of $182.78. The company has a debt-to-equity ratio of 3.52, a current ratio of 0.77 and a quick ratio of 0.77.

Morgan Stanley (NYSE:MS - Get Free Report) last issued its earnings results on Wednesday, April 15th. The financial services provider reported $3.43 earnings per share for the quarter, topping 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 company had revenue of $20.58 billion during the quarter, compared to the consensus estimate of $19.23 billion. During the same quarter in the prior year, the firm posted $2.60 EPS. Morgan Stanley's quarterly revenue was up 16.0% compared to the same quarter last year. Equities analysts anticipate that Morgan Stanley will post 11.9 earnings per share for the current fiscal year.

Morgan Stanley Announces Dividend

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

More Morgan Stanley News

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

• Positive Sentiment: Morgan Stanley’s investment management arm, together with Ridgeback Group, agreed to acquire Metra Living, a UK private rental business, for about £1.045 billion. The deal expands MS into residential rental assets and highlights its ability to deploy capital into new fee-generating businesses. Morgan Stanley Buys Into UK Rentals With £1.045b Metra Living Deal
• Positive Sentiment: Investors are also reacting to Morgan Stanley’s strong recent operating results: the firm posted Q1 EPS of $3.43, topping estimates, and revenue of $20.58 billion, also ahead of expectations, with year-over-year revenue growth of 16%. That supports the view that fundamentals remain solid after the stock’s big run. Morgan Stanley stock performance and earnings background
• Positive Sentiment: News that Morgan Stanley is part of the bank group working on possible OpenAI and Anthropic IPOs adds another potential catalyst, since high-profile tech listings could boost advisory and capital markets fees if they move forward. OpenAI, Anthropic IPOs Spark Battle Between Goldman And Morgan Stanley
• Neutral Sentiment: Several commentary pieces also frame MS as a long-term momentum name and note that the stock has been trading near its highs, which may be attracting trend-following buyers rather than pointing to a single new catalyst. Why Morgan Stanley is a Top Momentum Stock for the Long-Term

Insider Transactions at Morgan Stanley

In related news, insider Daniel A. Simkowitz sold 14,690 shares of the stock in a transaction dated Friday, April 17th. The stock was sold at an average price of $189.24, for a total transaction 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. This trade represents a 3.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Eric F. Grossman sold 11,118 shares of Morgan Stanley stock in a transaction that occurred on Monday, April 20th. The shares were sold at an average price of $190.75, for a total value of $2,120,758.50. Following the sale, the insider directly owned 169,403 shares in the company, valued at $32,313,622.25. This trade represents a 6.16% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 77,476 shares of company stock valued at $14,644,762 over the last 90 days. Company insiders own 0.17% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on MS shares. BNP Paribas Exane upped their target price on shares of Morgan Stanley from $195.00 to $205.00 and gave the company a "neutral" rating in a research note on Friday, April 24th. BMO Capital Markets lifted their price objective on Morgan Stanley from $190.00 to $220.00 and gave the stock an "outperform" rating in a report on Monday, April 20th. JPMorgan Chase & Co. upped their target price on shares of Morgan Stanley from $179.00 to $187.00 and gave the company a "neutral" rating in a report on Friday, June 12th. Keefe, Bruyette & Woods raised their price objective on Morgan Stanley from $210.00 to $218.00 and gave the stock an "outperform" rating in a research note on Thursday, April 16th. Finally, The Goldman Sachs Group lifted their price objective on Morgan Stanley from $186.00 to $205.00 and gave the company a "neutral" rating in a research report on Thursday, April 16th. Twelve analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $206.35.

About Morgan Stanley

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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