Gradient Investments LLC Has $46.65 Million Stake in Morgan Stanley $MS

Key Points

• Gradient Investments LLC has reduced its stake in Morgan Stanley to $46.65 million after selling 4,802 shares in the second quarter.
• Morgan Stanley recently reported $2.13 EPS for Q2, exceeding analysts' expectations, with a revenue of $16.79 billion, up 11.8% from the previous year.
• The company has approved a $20 billion stock repurchase program, indicating the board believes its stock is undervalued.

Gradient Investments LLC trimmed its holdings in Morgan Stanley (NYSE:MS - Free Report) by 1.4% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 331,198 shares of the financial services provider's stock after selling 4,802 shares during the period. Gradient Investments LLC's holdings in Morgan Stanley were worth $46,653,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors have also added to or reduced their stakes in the company. Brighton Jones LLC increased its holdings in shares of Morgan Stanley by 10.2% during the fourth quarter. Brighton Jones LLC now owns 12,782 shares of the financial services provider's stock worth $1,607,000 after buying an additional 1,185 shares in the last quarter. Silvercrest Asset Management Group LLC increased its holdings in Morgan Stanley by 9.5% in the fourth quarter. Silvercrest Asset Management Group LLC now owns 11,878 shares of the financial services provider's stock valued at $1,493,000 after purchasing an additional 1,027 shares during the period. Teza Capital Management LLC boosted its position in Morgan Stanley by 78.0% during the fourth quarter. Teza Capital Management LLC now owns 10,327 shares of the financial services provider's stock valued at $1,298,000 after acquiring an additional 4,524 shares during the last quarter. Texas Bank & Trust Co bought a new stake in Morgan Stanley during the fourth quarter valued at $601,000. Finally, Two Sigma Investments LP boosted its position in Morgan Stanley by 426.3% during the fourth quarter. Two Sigma Investments LP now owns 118,947 shares of the financial services provider's stock valued at $14,954,000 after acquiring an additional 96,347 shares during the last quarter. 84.19% of the stock is currently owned by institutional investors and hedge funds.

Morgan Stanley Trading Down 0.0%

Shares of MS stock opened at $156.47 on Monday. The company has a quick ratio of 0.78, a current ratio of 0.78 and a debt-to-equity ratio of 3.30. The business has a 50-day moving average price of $145.30 and a two-hundred day moving average price of $130.50. Morgan Stanley has a 12-month low of $94.33 and a 12-month high of $157.76. The firm has a market cap of $249.78 billion, a P/E ratio of 17.72, a price-to-earnings-growth ratio of 1.94 and a beta of 1.33.

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

Morgan Stanley Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 15th. Shareholders of record on Thursday, July 31st were given a dividend of $1.00 per share. This represents a $4.00 annualized dividend and a yield of 2.6%. The ex-dividend date of this dividend was Thursday, July 31st. This is a positive change from Morgan Stanley's previous quarterly dividend of $0.93. Morgan Stanley's payout ratio is presently 45.30%.

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

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the stock. Erste Group Bank raised shares of Morgan Stanley from a "hold" rating to a "strong-buy" rating in a research report on Saturday, May 24th. The Goldman Sachs Group increased their price objective on shares of Morgan Stanley from $121.00 to $136.00 and gave the stock a "neutral" rating in a research report on Tuesday, June 10th. Wells Fargo & Company increased their price objective on shares of Morgan Stanley from $120.00 to $145.00 and gave the stock an "equal weight" rating in a research report on Tuesday, July 8th. Citigroup reiterated a "neutral" rating and set a $130.00 price target (up previously from $125.00) on shares of Morgan Stanley in a research note on Wednesday, June 18th. Finally, Keefe, Bruyette & Woods raised Morgan Stanley from a "market perform" rating to an "outperform" rating and increased their price objective for the stock from $127.00 to $160.00 in a research note on Wednesday, July 9th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and nine have given a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $138.25.

Insider Transactions at Morgan Stanley

In related news, insider Andrew M. Saperstein sold 43,566 shares of the company's stock in a transaction that occurred on Thursday, July 17th. The stock was sold at an average price of $140.97, for a total value of $6,141,499.02. Following the transaction, the insider directly owned 294,250 shares of the company's stock, valued at approximately $41,480,422.50. This represents a 12.90% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Michael A. Pizzi sold 18,000 shares of the company's stock in a transaction that occurred on Thursday, July 17th. The shares were sold at an average price of $140.62, for a total value of $2,531,160.00. Following the completion of the transaction, the insider directly owned 136,407 shares in the company, valued at $19,181,552.34. This trade represents a 11.66% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 148,149 shares of company stock worth $20,841,628. Company insiders own 0.19% of the company's stock.

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.

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