Morgan Stanley $MS Holdings Cut by Rockland Trust Co.

Key Points

• Rockland Trust cut its Morgan Stanley stake by 87.9% in the third quarter, selling 70,853 shares and retaining 9,777 shares valued at approximately $1.84 million.
• Morgan Stanley reported strong quarterly results, with earnings of $3.46 per share and revenue of $21.35 billion, both exceeding analyst expectations. The company also authorized a $20 billion share-repurchase program and increased its quarterly dividend to $1.15.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $221.65, compared with the stock’s recent price of $190.23.

Rockland Trust Co. reduced its position in shares of Morgan Stanley (NYSE:MS - Free Report) by 87.9% in the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 9,777 shares of the financial services provider's stock after selling 70,853 shares during the period. Rockland Trust Co.'s holdings in Morgan Stanley were worth $1,839,000 at the end of the most recent quarter.

Several other institutional investors have also recently made changes to their positions in MS. Marquette Asset Management LLC grew its position in Morgan Stanley by 143.4% during the second quarter. Marquette Asset Management LLC now owns 129 shares of the financial services provider's stock worth $27,000 after buying an additional 76 shares in the last quarter. Atlatl Advisers LLC purchased a new stake in shares of Morgan Stanley in the 2nd quarter valued at about $28,000. Hughes Financial Services LLC boosted its position in shares of Morgan Stanley by 55.7% during the 2nd quarter. Hughes Financial Services LLC now owns 137 shares of the financial services provider's stock valued at $29,000 after acquiring an additional 49 shares during the last quarter. Purpose Unlimited Inc. bought a new stake in shares of Morgan Stanley during the 4th quarter valued at about $25,000. Finally, Security National Bank of SO Dak purchased a new position in shares of Morgan Stanley during the second quarter worth about $31,000. Institutional investors own 84.19% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on the stock. Citigroup decreased their price objective on shares of Morgan Stanley from $235.00 to $210.00 and set a "neutral" rating on the stock in a research report on Wednesday, September 30th. Bank of America boosted their price target on shares of Morgan Stanley from $225.00 to $250.00 and gave the stock a "buy" rating in a research note on Tuesday, July 7th. JPMorgan Chase & Co. raised their price objective on shares of Morgan Stanley from $187.00 to $195.00 and gave the company a "neutral" rating in a research report on Thursday, July 16th. BMO Capital Markets raised their price objective on shares of Morgan Stanley from $240.00 to $250.00 and gave the company an "outperform" rating in a research report on Friday, July 17th. Finally, Keefe, Bruyette & Woods lifted their price objective on shares of Morgan Stanley from $225.00 to $250.00 and gave the stock an "outperform" rating in a report on Thursday, July 16th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $221.65.

Morgan Stanley Trading Down 0.0%

Shares of MS stock traded down $0.08 during mid-day trading on Monday, reaching $190.23. The stock had a trading volume of 1,849,330 shares, compared to its average volume of 6,168,083. The firm has a market capitalization of $300.04 billion, a PE ratio of 15.38, a price-to-earnings-growth ratio of 1.36 and a beta of 1.22. The stock's 50-day moving average price is $209.57 and its two-hundred day moving average price is $201.99. The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 3.65. Morgan Stanley has a 52-week low of $151.84 and a 52-week high of $232.25.

Morgan Stanley (NYSE:MS - Get Free Report) last released its quarterly earnings results on Wednesday, July 15th. The financial services provider reported $3.46 EPS for the quarter, beating analysts' consensus estimates of $2.89 by $0.57. Morgan Stanley had a return on equity of 19.31% and a net margin of 15.65%.The business had revenue of $21.35 billion during the quarter, compared to analyst estimates of $19.67 billion. During the same quarter in the prior year, the company posted $2.13 EPS. Morgan Stanley's quarterly revenue was up 27.1% compared to the same quarter last year. Equities analysts expect that Morgan Stanley will post 12.75 earnings per share for the current fiscal year.

Morgan Stanley declared that its Board of Directors has approved a stock repurchase plan on Wednesday, June 24th that permits the company to buyback $20.00 billion in shares. This buyback authorization permits the financial services provider to reacquire up to 5.6% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's management believes its stock is undervalued.

Morgan Stanley Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 14th. Shareholders of record on Friday, July 31st were issued a $1.15 dividend. This represents a $4.60 annualized dividend and a yield of 2.4%. This is a boost from Morgan Stanley's previous quarterly dividend of $1.00. The ex-dividend date was Friday, July 31st. Morgan Stanley's dividend payout ratio (DPR) is 37.19%.

Morgan Stanley News Summary

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

• Positive Sentiment: Morgan Stanley strategists expect an earnings-led improvement in industrial stocks and believe the gap between the S&P 500 and weaker market breadth could narrow. This outlook supports the firm’s investment-banking, trading and wealth-management businesses if market participation and corporate activity broaden. Morgan Stanley’s Wilson Sees Earnings-Led Upturn in Industrials
• Positive Sentiment: The firm’s analysts remain constructive on several companies, including Seagate, Western Digital, Continental and Nvidia. Continued high-profile research activity can reinforce Morgan Stanley’s advisory franchise and potentially benefit investment-banking and institutional-equities revenue. Seagate and Western Digital Stocks Rebound as Morgan Stanley Says Get Aggressive
• Neutral Sentiment: An analysis of Morgan Stanley’s economic moat highlights its shift from a market-dependent trading house toward a more diversified wealth-management and investment-banking model. The assessment is strategically encouraging but does not represent a new earnings forecast or corporate announcement. What is Morgan Stanley’s Economic Moat, and is it Widening or Narrowing?
• Negative Sentiment: Morgan Stanley disclosed a substantial reduction in its Polaris position, a portfolio-management decision that may create a modestly negative read-through for sentiment but does not indicate a change in Morgan Stanley’s own fundamentals. Polaris Institutional Holdings Update

About Morgan Stanley

Morgan Stanley is a global financial services firm serving corporations, governments, financial institutions, individuals and other investors. The company provides investment banking and advisory services, including mergers and acquisitions advice, equity and debt underwriting, securities sales and trading, and corporate lending.

Through its Wealth Management business, Morgan Stanley offers financial planning, brokerage, investment advisory and banking services to individual investors, businesses and institutions.

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