Goldman Sachs Group Inc. Buys 2,989,122 Shares of Morgan Stanley (NYSE:MS)

Key Points

• Goldman Sachs Group Inc. increased its stake in Morgan Stanley by 21.2%, acquiring nearly 3 million shares in the first quarter, bringing its total ownership to 17 million shares valued at approximately $1.99 billion.
• Several institutional investors also expanded their positions in Morgan Stanley, with Capital Research Global Investors increasing its stake by 44.8% and others making significant purchases in the fourth quarter.
• Morgan Stanley has announced a quarterly dividend of $1.00 per share, a rise from its previous dividend of $0.93, alongside a $20 billion stock buyback plan authorized by its Board of Directors.

Goldman Sachs Group Inc. lifted its position in Morgan Stanley (NYSE:MS - Free Report) by 21.2% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 17,056,916 shares of the financial services provider's stock after buying an additional 2,989,122 shares during the quarter. Goldman Sachs Group Inc. owned about 1.06% of Morgan Stanley worth $1,990,030,000 as of its most recent SEC filing.

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

Morgan Stanley Price Performance

MS traded up $2.31 during trading on Friday, hitting $143.23. 3,942,908 shares of the stock traded hands, compared to its average volume of 5,415,230. The business has a 50 day moving average price of $137.93 and a 200 day moving average price of $128.48. The company has a market cap of $228.64 billion, a price-to-earnings ratio of 16.22, a PEG ratio of 1.76 and a beta of 1.32. Morgan Stanley has a twelve month low of $93.54 and a twelve month high of $145.48. The company has a debt-to-equity ratio of 3.30, a current ratio of 0.78 and a quick ratio of 0.78.

Morgan Stanley (NYSE:MS - Get Free Report) last released its quarterly earnings data on Wednesday, July 16th. The financial services provider reported $2.13 earnings per share for the quarter, beating the consensus estimate 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 return on equity of 15.20% and a net margin of 13.06%. Morgan Stanley's revenue was up 11.8% compared to the same quarter last year. During the same period last year, the firm posted $1.82 earnings per share. Equities research analysts forecast that Morgan Stanley will post 8.56 earnings per share for the current fiscal year.

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

Morgan Stanley Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, August 15th. Shareholders of record on Thursday, July 31st will be given a $1.00 dividend. This is an increase from Morgan Stanley's previous quarterly dividend of $0.93. This represents a $4.00 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date is Thursday, July 31st. Morgan Stanley's dividend payout ratio (DPR) is 45.30%.

Insider Transactions at Morgan Stanley

In related news, insider Eric F. Grossman sold 12,000 shares of the business's stock in a transaction on Thursday, July 17th. The stock was sold at an average price of $141.12, for a total transaction of $1,693,440.00. Following the sale, the insider owned 186,420 shares in the company, valued at $26,307,590.40. The trade was a 6.05% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Charles A. Smith sold 20,000 shares of the stock in a transaction dated Thursday, July 17th. The shares were sold at an average price of $140.30, for a total value of $2,806,000.00. Following the completion of the transaction, the insider owned 119,239 shares of the company's stock, valued at $16,729,231.70. This represents a 14.36% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 148,149 shares of company stock valued at $20,841,628. Corporate insiders own 0.19% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on MS. Wells Fargo & Company increased their price target on shares of Morgan Stanley from $120.00 to $145.00 and gave the company an "equal weight" rating in a report on Tuesday, July 8th. JPMorgan Chase & Co. dropped their price target 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 upped their price objective for the company from $127.00 to $160.00 in a report on Wednesday, July 9th. JMP Securities reissued a "market perform" rating on shares of Morgan Stanley in a report on Monday, April 14th. Finally, Citigroup restated a "neutral" rating and issued a $130.00 price target (up from $125.00) on shares of Morgan Stanley in a research note 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. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $138.25.

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.