Morgan Stanley (NYSE:MS) Stake Lessened by HighTower Advisors LLC

Key Points

• HighTower Advisors LLC has reduced its holdings in Morgan Stanley by 1.4%, now owning approximately 1.39 million shares valued at about $159.91 million.
• Morgan Stanley recently increased its quarterly dividend to $1.00 per share, representing a yield of 2.8%, up from the previous $0.93 per share.
• The company also initiated a $20 billion share repurchase program, indicating confidence in the valuation of its stock.

HighTower Advisors LLC decreased its holdings in Morgan Stanley (NYSE:MS - Free Report) by 1.4% during the 1st quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 1,393,541 shares of the financial services provider's stock after selling 19,137 shares during the quarter. HighTower Advisors LLC owned approximately 0.09% of Morgan Stanley worth $159,909,000 as of its most recent filing with the SEC.

Several other institutional investors have also modified their holdings of the business. Minot DeBlois Advisors LLC bought a new stake in Morgan Stanley in the fourth quarter valued at about $25,000. MorganRosel Wealth Management LLC bought a new stake in Morgan Stanley in the first quarter valued at about $27,000. Garde Capital Inc. bought a new position in shares of Morgan Stanley during the first quarter valued at approximately $30,000. Hopwood Financial Services Inc. grew its holdings in shares of Morgan Stanley by 50.0% during the first quarter. Hopwood Financial Services Inc. now owns 264 shares of the financial services provider's stock valued at $31,000 after purchasing an additional 88 shares during the last quarter. Finally, Ancora Advisors LLC grew its holdings in shares of Morgan Stanley by 104.7% during the fourth quarter. Ancora Advisors LLC now owns 264 shares of the financial services provider's stock valued at $33,000 after purchasing an additional 135 shares during the last quarter. Institutional investors and hedge funds own 84.19% of the company's stock.

Wall Street Analyst Weigh In

MS has been the subject of several recent research reports. Erste Group Bank raised Morgan Stanley from a "hold" rating to a "strong-buy" rating in a report on Saturday, May 24th. Wells Fargo & Company upped their target price on Morgan Stanley from $120.00 to $145.00 and gave the company an "equal weight" rating in a report on Tuesday, July 8th. Keefe, Bruyette & Woods raised Morgan Stanley from a "market perform" rating to an "outperform" rating and upped their target price for the company from $127.00 to $160.00 in a report on Wednesday, July 9th. The Goldman Sachs Group upped their target price on Morgan Stanley from $121.00 to $136.00 and gave the company a "neutral" rating in a report on Tuesday, June 10th. Finally, Citigroup reaffirmed a "neutral" rating and set a $130.00 target price (up from $125.00) on shares of Morgan Stanley in a report on Wednesday, June 18th. Nine analysts have rated the stock with a hold rating, five have given a buy rating and one has given a strong buy rating to the company's stock. According to data from MarketBeat, Morgan Stanley currently has a consensus rating of "Hold" and a consensus price target of $138.25.

Insider Activity at Morgan Stanley

In other news, insider Daniel A. Simkowitz sold 29,000 shares of the stock in a transaction on Thursday, July 17th. The stock was sold at an average price of $141.13, for a total transaction of $4,092,770.00. Following the completion of the sale, the insider owned 399,105 shares in the company, valued at approximately $56,325,688.65. This represents a 6.77% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Eric F. Grossman sold 12,000 shares of the stock in a transaction on Thursday, July 17th. The shares were sold at an average price of $141.12, for a total value of $1,693,440.00. Following the sale, the insider owned 186,420 shares of the company's stock, valued at $26,307,590.40. This trade represents a 6.05% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 148,149 shares of company stock worth $20,841,628. 0.19% of the stock is owned by corporate insiders.

Morgan Stanley Price Performance

MS traded up $0.54 during trading on Wednesday, reaching $147.83. The stock had a trading volume of 5,541,877 shares, compared to its average volume of 5,348,447. The firm has a market capitalization of $235.99 billion, a price-to-earnings ratio of 16.74, a price-to-earnings-growth ratio of 1.84 and a beta of 1.32. The company has a quick ratio of 0.78, a current ratio of 0.78 and a debt-to-equity ratio of 3.30. Morgan Stanley has a 1-year low of $94.09 and a 1-year high of $149.08. The stock has a 50 day moving average of $139.31 and a two-hundred day moving average of $128.71.

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

Morgan Stanley Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 15th. Stockholders of record on Thursday, July 31st will be given 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 is Thursday, July 31st. This represents a $4.00 dividend on an annualized basis and a dividend yield of 2.7%. Morgan Stanley's payout ratio is currently 45.30%.

Morgan Stanley announced that its board has initiated a share buyback plan on Tuesday, July 1st that allows the company to repurchase $20.00 billion in shares. This repurchase authorization allows the financial services provider to buy up to 8.9% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's leadership believes its shares are undervalued.

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.