Greenwood Capital Associates LLC Cuts Position in Morgan Stanley $MS

Key Points

• Greenwood Capital Associates LLC cut its Morgan Stanley stake by 24.8% in the first quarter, selling 13,814 shares and leaving it with 41,992 shares valued at about $6.9 million.
• Insider selling continued at Morgan Stanley, with Eric F. Grossman and Daniel A. Simkowitz both reducing their holdings; insiders sold 77,476 shares total over the last quarter.
• Analysts and the company’s capital return plan remain supportive, as several firms raised price targets while Morgan Stanley authorized a $20 billion share repurchase program and continues paying a quarterly dividend.

Greenwood Capital Associates LLC lowered its stake in shares of Morgan Stanley (NYSE:MS - Free Report) by 24.8% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 41,992 shares of the financial services provider's stock after selling 13,814 shares during the period. Greenwood Capital Associates LLC's holdings in Morgan Stanley were worth $6,911,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds also recently added to or reduced their stakes in MS. Motiv8 Investments LLC purchased a new stake in shares of Morgan Stanley during the 4th quarter worth approximately $25,000. Purpose Unlimited Inc. purchased a new stake in Morgan Stanley during the fourth quarter worth $25,000. Olistico Wealth LLC acquired a new stake in Morgan Stanley in the fourth quarter valued at $27,000. Lodestone Wealth Management LLC purchased a new position in shares of Morgan Stanley in the fourth quarter valued at $28,000. Finally, Nvest Wealth Strategies Inc. purchased a new position in shares of Morgan Stanley in the fourth quarter valued at $31,000. 84.19% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other Morgan Stanley news, insider Eric F. Grossman sold 11,118 shares of the firm's stock in a transaction dated Monday, April 20th. The stock was 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 of the company's stock, valued at approximately $32,313,622.25. This trade represents a 6.16% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Daniel A. Simkowitz sold 14,690 shares of Morgan Stanley stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $189.24, for a total value of $2,779,935.60. Following the completion of the sale, the insider owned 365,802 shares of the company's stock, valued at $69,224,370.48. This trade represents a 3.86% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 77,476 shares of company stock valued at $14,644,762 over the last quarter. Company insiders own 0.17% of the company's stock.

More Morgan Stanley News

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

• Positive Sentiment: Bank of America raised its price target on Morgan Stanley to $250 from $225 and kept a Buy rating, signaling more upside as the firm heads into earnings season. Benzinga coverage of Morgan Stanley target increase
• Positive Sentiment: UBS also lifted its target to $255 and reiterated a Buy rating, adding to bullish analyst sentiment ahead of the company’s July 15 Q2 report. Benzinga coverage of UBS target increase
• Positive Sentiment: Media coverage highlighted Morgan Stanley’s view that large-cap tech could rally again, which may be helping the broader “risk-on” tone around financial markets and Morgan Stanley shares. TipRanks article on Morgan Stanley Mag 7 call
• Neutral Sentiment: Investors are also watching Morgan Stanley’s own upcoming earnings release, with expectations for revenue and EPS growth already baked into forecasts, which can keep the stock active but not necessarily directional by itself. Benzinga earnings preview for Morgan Stanley
• Neutral Sentiment: Separately, recent commentary noted Morgan Stanley’s continued shift of client assets toward adviser-led wealth management, a longer-term strategic positive but not a near-term catalyst. 247WallSt article on Morgan Stanley wealth management shift

Analysts Set New Price Targets

Several equities research analysts recently commented on the stock. Jefferies Financial Group upgraded shares of Morgan Stanley from a "hold" rating to a "strong-buy" rating in a research report on Tuesday. Citizens Jmp restated a "market perform" rating on shares of Morgan Stanley in a report on Thursday, April 16th. HSBC lifted their target price on shares of Morgan Stanley from $153.00 to $177.00 and gave the stock a "hold" rating in a research report on Friday, April 17th. Barclays upped their price target on shares of Morgan Stanley from $219.00 to $230.00 and gave the company an "overweight" rating in a report on Thursday, April 16th. Finally, Weiss Ratings reiterated a "buy (b-)" rating on shares of Morgan Stanley in a research report on Thursday, July 2nd. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Morgan Stanley has an average rating of "Moderate Buy" and an average target price of $215.20.

Morgan Stanley Stock Down 1.7%

Shares of NYSE MS opened at $218.20 on Thursday. The firm has a market cap of $344.16 billion, a P/E ratio of 19.76, a price-to-earnings-growth ratio of 1.70 and a beta of 1.23. The company has a debt-to-equity ratio of 3.52, a quick ratio of 0.77 and a current ratio of 0.77. Morgan Stanley has a 1 year low of $135.26 and a 1 year high of $230.47. The firm's 50 day moving average price is $207.24 and its 200 day moving average price is $186.70.

Morgan Stanley (NYSE:MS - Get Free Report) last issued its quarterly earnings results on Wednesday, April 15th. The financial services provider reported $3.43 earnings per share for the quarter, beating the consensus estimate of $3.02 by $0.41. Morgan Stanley had a return on equity of 17.70% and a net margin of 14.65%.The company had revenue of $20.58 billion during the quarter, compared to the consensus estimate of $19.23 billion. During the same period in the previous year, the firm posted $2.60 EPS. Morgan Stanley's revenue was up 16.0% on a year-over-year basis. As a group, sell-side analysts anticipate that Morgan Stanley will post 11.87 earnings per share for the current year.

Morgan Stanley announced that its board has initiated a share repurchase plan on Wednesday, June 24th that authorizes the company to repurchase $20.00 billion in shares. This repurchase authorization authorizes the financial services provider to repurchase up to 5.6% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's board believes its shares are undervalued.

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. The ex-dividend date of this dividend was Thursday, April 30th. This represents a $4.00 dividend on an annualized basis and a dividend yield of 1.8%. Morgan Stanley's payout ratio is currently 36.23%.

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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