Cullinan Associates Inc. Acquires 3,420 Shares of Morgan Stanley $MS

Key Points

• Cullinan Associates Inc. increased its shareholding in Morgan Stanley by 9.2%, acquiring an additional 3,420 shares, bringing its total holdings to 40,472 shares valued at approximately $5.7 million.
• Morgan Stanley's board approved a significant $20 billion stock buyback, authorizing repurchases of up to 8.9% of its outstanding shares, perceived as a sign that management believes the stock is undervalued.
• The firm recently announced a quarterly dividend increase from $0.93 to $1.00 per share, resulting in an annualized dividend of $4.00 and a yield of 2.5%.

Cullinan Associates Inc. lifted its holdings in shares of Morgan Stanley (NYSE:MS - Free Report) by 9.2% during the 2nd quarter, according to the company in its most recent filing with the SEC. The fund owned 40,472 shares of the financial services provider's stock after purchasing an additional 3,420 shares during the period. Cullinan Associates Inc.'s holdings in Morgan Stanley were worth $5,701,000 as of its most recent filing with the SEC.

A number of other large investors also recently added to or reduced their stakes in MS. Vanguard Group Inc. increased its holdings in shares of Morgan Stanley by 6.9% in the first quarter. Vanguard Group Inc. now owns 117,769,345 shares of the financial services provider's stock worth $13,740,149,000 after buying an additional 7,636,547 shares during the period. Goldman Sachs Group Inc. boosted its holdings in Morgan Stanley by 21.2% during the 1st quarter. Goldman Sachs Group Inc. now owns 17,056,916 shares of the financial services provider's stock valued at $1,990,030,000 after acquiring an additional 2,989,122 shares during the period. Northern Trust Corp grew its position in Morgan Stanley by 3.0% during the 1st quarter. Northern Trust Corp now owns 13,807,153 shares of the financial services provider's stock worth $1,610,881,000 after acquiring an additional 403,956 shares during the last quarter. Ameriprise Financial Inc. increased its stake in Morgan Stanley by 1.7% in the 1st quarter. Ameriprise Financial Inc. now owns 13,063,819 shares of the financial services provider's stock worth $1,523,337,000 after purchasing an additional 219,729 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Morgan Stanley by 4.8% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 9,652,910 shares of the financial services provider's stock valued at $1,126,205,000 after purchasing an additional 442,617 shares during the last quarter. Hedge funds and other institutional investors own 84.19% of the company's stock.

Morgan Stanley Stock Performance

Shares of MS opened at $157.40 on Monday. The company has a 50-day simple moving average of $150.30 and a two-hundred day simple moving average of $134.63. The company has a debt-to-equity ratio of 3.30, a current ratio of 0.78 and a quick ratio of 0.78. The firm has a market capitalization of $251.27 billion, a PE ratio of 17.83, a price-to-earnings-growth ratio of 1.96 and a beta of 1.32. Morgan Stanley has a one year low of $94.33 and a one year high of $163.98.

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

Morgan Stanley announced that its board has approved a stock buyback 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 repurchase up to 8.9% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company's management believes its stock is undervalued.

Morgan Stanley Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 15th. Stockholders of record on Thursday, July 31st were issued a dividend of $1.00 per share. This is a boost from Morgan Stanley's previous quarterly dividend of $0.93. The ex-dividend date was Thursday, July 31st. This represents a $4.00 dividend on an annualized basis and a dividend yield of 2.5%. Morgan Stanley's dividend payout ratio (DPR) is presently 45.30%.

Insider Transactions at Morgan Stanley

In related news, insider Andrew M. Saperstein sold 43,566 shares of the stock in a transaction dated Thursday, July 17th. The shares were sold at an average price of $140.97, for a total value of $6,141,499.02. Following the completion of the transaction, the insider directly owned 294,250 shares in the company, valued at $41,480,422.50. This trade represents a 12.90% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Michael A. Pizzi sold 18,000 shares of the company's stock in a transaction dated Thursday, July 17th. The stock was 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 owned 136,407 shares in the company, valued at approximately $19,181,552.34. This trade represents a 11.66% 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 worth $20,841,628. 0.19% of the stock is owned by insiders.

Wall Street Analyst Weigh In

MS has been the topic of several recent analyst reports. The Goldman Sachs Group raised their target price on shares of Morgan Stanley from $145.00 to $164.00 and gave the stock a "neutral" rating in a report on Friday. Citigroup raised their price target on shares of Morgan Stanley from $130.00 to $155.00 and gave the stock a "neutral" rating in a report on Friday, September 26th. Wells Fargo & Company boosted their price objective on shares of Morgan Stanley from $145.00 to $165.00 and gave the company an "equal weight" rating in a research report on Tuesday, September 16th. Royal Bank Of Canada increased their target price on shares of Morgan Stanley from $145.00 to $171.00 and gave the stock a "sector perform" rating in a report on Wednesday, October 1st. Finally, Weiss Ratings restated a "buy (b-)" rating on shares of Morgan Stanley in a report on Saturday, September 27th. Two equities research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and nine have issued a Hold rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $152.92.

Morgan Stanley Company Profile

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.

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