Cullen Capital Management LLC Invests $295.48 Million in Morgan Stanley $MS

Key Points

• Cullen Capital Management acquired 1.41 million Morgan Stanley shares worth approximately $295.5 million, making the stock its third-largest holding and representing about 2.9% of its portfolio.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $224.75, while several firms recently raised their targets to between $195 and $262.
• Morgan Stanley reported stronger-than-expected quarterly results, with revenue up 27.1% year over year, and increased its dividend to $1.15 per quarter alongside a $20 billion share-repurchase authorization.

Cullen Capital Management LLC acquired a new position in shares of Morgan Stanley (NYSE:MS - Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 1,413,521 shares of the financial services provider's stock, valued at approximately $295,482,000. Morgan Stanley accounts for approximately 2.9% of Cullen Capital Management LLC's holdings, making the stock its 3rd biggest holding. Cullen Capital Management LLC owned about 0.09% of Morgan Stanley at the end of the most recent reporting period.

A number of other hedge funds have also bought and sold shares of the company. Purpose Unlimited Inc. acquired a new stake in Morgan Stanley during the 4th quarter worth about $25,000. Motiv8 Investments LLC bought a new position in shares of Morgan Stanley in the 4th quarter worth about $25,000. Marquette Asset Management LLC lifted its stake in shares of Morgan Stanley by 143.4% in the 2nd quarter. Marquette Asset Management LLC now owns 129 shares of the financial services provider's stock valued at $27,000 after purchasing an additional 76 shares during the period. Atlatl Advisers LLC acquired a new position in shares of Morgan Stanley in the 2nd quarter valued at about $28,000. Finally, WFA of San Diego LLC bought a new stake in shares of Morgan Stanley during the 2nd quarter valued at about $28,000. Institutional investors own 84.19% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms recently commented on MS. Weiss Ratings raised Morgan Stanley from a "buy (b-)" rating to a "buy (b)" rating in a research note on Wednesday, August 5th. Rothschild & Co Redburn boosted their price target on Morgan Stanley from $183.00 to $195.00 and gave the company a "neutral" rating in a research note on Thursday, June 25th. Keefe, Bruyette & Woods increased their price target on Morgan Stanley from $225.00 to $250.00 and gave the stock an "outperform" rating in a report on Thursday, July 16th. CICC Research raised their price objective on shares of Morgan Stanley from $175.00 to $200.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 19th. Finally, Barclays lifted their price objective on shares of Morgan Stanley from $230.00 to $262.00 and gave the company an "overweight" rating in a research note on Thursday, July 16th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Morgan Stanley currently has a consensus rating of "Moderate Buy" and a consensus price target of $224.75.

Morgan Stanley News Roundup

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

• Positive Sentiment: Morgan Stanley is expanding its international wealth-management strategy, aiming to serve offshore clients in their home markets. The initiative could broaden the firm’s addressable client base and support recurring fee revenue. Morgan Stanley’s Bobby Singh: Why We Are Exploring an International Wealth Push
• Positive Sentiment: Morgan Stanley continues to participate in investment-banking activity, including as a dealer manager for Tyson Foods’ $1.2 billion debt tender offer and as an adviser or buyer in recent equity transactions. These activities may generate fees, although no material financial impact was disclosed. Tyson Foods Announces Pricing Terms and Early Settlement of Debt Tender Offers
• Neutral Sentiment: Morgan Stanley’s shares have gained 45.1% over the past year and outperformed peers, highlighting strong momentum but also raising the bar for additional gains. Morgan Stanley Gains 45.1% in a Year: Should You Buy MS Stock Now?
• Neutral Sentiment: The firm’s research team expects bond yields could rise in a postwar-style economic regime and recommends large-cap, high-quality companies and artificial-intelligence adopters. Higher yields can benefit some interest-related businesses but may pressure valuations and slow deal activity. The post-World War II market shift is here
• Negative Sentiment: Shareholders are suing JPMorgan and Morgan Stanley over their roles as advisers on multibillion-dollar buyouts. The litigation creates potential legal costs, liability and reputational risk, although the financial exposure remains unclear. JPMorgan, Morgan Stanley defend against suits over roles in buyouts
• Negative Sentiment: Analyst commentary cautions that trading revenue is cyclical, expenses are rising and Morgan Stanley’s premium valuation may limit near-term upside. These concerns likely contribute to subdued trading despite the firm’s strong annual gain. Morgan Stanley Gains 45.1% in a Year

Morgan Stanley Stock Performance

MS opened at $214.08 on Tuesday. Morgan Stanley has a 1-year low of $145.65 and a 1-year high of $232.25. The company has a market cap of $337.67 billion, a price-to-earnings ratio of 17.31, a PEG ratio of 1.52 and a beta of 1.22. The company's fifty day moving average price is $217.09 and its two-hundred day moving average price is $194.41. The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 3.65.

Morgan Stanley (NYSE:MS - Get Free Report) last issued its quarterly earnings data on Wednesday, July 15th. The financial services provider reported $3.46 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.89 by $0.57. The firm had revenue of $21.35 billion during the quarter, compared to analysts' expectations of $19.67 billion. Morgan Stanley had a net margin of 15.65% and a return on equity of 19.31%. The business's revenue was up 27.1% on a year-over-year basis. During the same period last year, the company earned $2.13 earnings per share. On average, analysts expect that Morgan Stanley will post 12.79 EPS for the current fiscal year.

Morgan Stanley Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, August 14th. Investors of record on Friday, July 31st were given a $1.15 dividend. This represents a $4.60 annualized dividend and a yield of 2.1%. The ex-dividend date of this dividend was Friday, July 31st. This is a positive change from Morgan Stanley's previous quarterly dividend of $1.00. Morgan Stanley's payout ratio is 37.19%.

Morgan Stanley announced that its Board of Directors has approved a stock repurchase program on Wednesday, June 24th that authorizes the company to repurchase $20.00 billion in shares. This repurchase authorization authorizes the financial services provider to purchase up to 5.6% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company's leadership believes its stock is undervalued.

Morgan Stanley 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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