Morgan Stanley $MS Shares Sold by Artemis Investment Management LLP

Key Points

• Artemis Investment Management LLP reduced its Morgan Stanley stake by 6.2% in the third quarter, selling 5,740 shares and retaining 87,440 shares valued at approximately $16.45 million. Institutional investors collectively own 84.19% of the company.
• Morgan Stanley recently reported strong quarterly results, with EPS of $3.46 and revenue of $21.35 billion, exceeding analyst expectations and representing 27.1% year-over-year revenue growth. The company also authorized a $20 billion share-repurchase program and increased its quarterly dividend to $1.15 per share.
• Shares opened at $187.52, below the analyst consensus price target of roughly $219, while ratings remain mixed. Positive factors include the planned conversion of nearly $10 billion in municipal-bond funds to ETFs, but downgrades, broader market weakness and uncertainty ahead of the next earnings report continue to weigh on sentiment.

Artemis Investment Management LLP trimmed its holdings in shares of Morgan Stanley (NYSE:MS - Free Report) by 6.2% in the third quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 87,440 shares of the financial services provider's stock after selling 5,740 shares during the period. Artemis Investment Management LLP's holdings in Morgan Stanley were worth $16,446,000 as of its most recent SEC filing.

Several other hedge funds have also modified their holdings of MS. Financiere des Professionnels Fonds d investissement inc. purchased a new stake in shares of Morgan Stanley in the 1st quarter valued at approximately $8,854,000. Diversify Wealth Management LLC grew its position in Morgan Stanley by 201.0% during the 1st quarter. Diversify Wealth Management LLC now owns 17,559 shares of the financial services provider's stock worth $2,890,000 after purchasing an additional 11,726 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. raised its stake in Morgan Stanley by 10.9% during the 2nd quarter. Mirae Asset Global Investments Co. Ltd. now owns 294,047 shares of the financial services provider's stock valued at $61,468,000 after purchasing an additional 28,877 shares during the period. QRG Capital Management Inc. lifted its holdings in shares of Morgan Stanley by 12.0% in the second quarter. QRG Capital Management Inc. now owns 279,622 shares of the financial services provider's stock valued at $58,452,000 after purchasing an additional 30,010 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in shares of Morgan Stanley by 0.9% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 9,171,655 shares of the financial services provider's stock valued at $1,628,244,000 after purchasing an additional 83,472 shares in the last quarter. 84.19% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Morgan Stanley

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

• Positive Sentiment: Morgan Stanley’s proposed conversion of eight Eaton Vance municipal-bond mutual funds, holding nearly $10 billion, into ETFs could support fee-based asset growth, improve product appeal and strengthen the firm’s wealth- and investment-management platform. Shareholder approval is required. Morgan Stanley ETF conversion article
• Positive Sentiment: Jim Cramer expressed support for Morgan Stanley following its pullback, citing the company’s buyback authorization as a reason investors may view the shares favorably. Jim Cramer supports Morgan Stanley
• Positive Sentiment: Unusually active call-option buying indicates that some traders are positioning for a rebound, although options activity is not a direct indicator of fundamental value.
• Neutral Sentiment: Analysts maintain a generally constructive view: the stock carries an average price target near $219.90, implying meaningful upside from recent trading levels, but the consensus is mixed with buy, hold and sell ratings. Morgan Stanley analyst price target article
• Negative Sentiment: Erste Group downgraded Morgan Stanley from Buy to Hold, while TD Cowen initiated coverage with a Hold rating and a $210 price target. These actions may have reinforced profit-taking and reduced the impact of more bullish views.
• Negative Sentiment: Investors are also preparing for the next earnings report. Although Morgan Stanley recently delivered a substantial EPS and revenue beat, Zacks said the company lacks the combination of factors that typically supports another likely earnings surprise, increasing caution ahead of results. Morgan Stanley earnings expectations
• Negative Sentiment: Broader market weakness, including declines in major technology and industrial stocks, likely added pressure to financial shares. Morgan Stanley’s beta of 1.22 also makes it more sensitive than the broader market to risk-off trading.

Morgan Stanley Trading Down 1.2%

Shares of MS stock opened at $187.52 on Friday. Morgan Stanley has a 12 month low of $151.84 and a 12 month high of $232.25. The company has a market cap of $295.77 billion, a PE ratio of 15.16, a price-to-earnings-growth ratio of 1.26 and a beta of 1.22. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 3.65. The business's 50 day moving average is $207.95 and its two-hundred day moving average is $202.85.

Morgan Stanley (NYSE:MS - Get Free Report) last released its earnings results on Wednesday, July 15th. The financial services provider reported $3.46 earnings per share for the quarter, beating the consensus estimate of $2.89 by $0.57. The business had revenue of $21.35 billion during the quarter, compared to analysts' expectations of $19.67 billion. Morgan Stanley had a net margin of 15.65% and a return on equity of 19.31%. The firm's revenue was up 27.1% on a year-over-year basis. During the same quarter last year, the company earned $2.13 earnings per share. Equities analysts predict that Morgan Stanley will post 12.68 EPS for the current year.

Morgan Stanley announced that its Board of Directors has approved a share repurchase program on Wednesday, June 24th that authorizes the company to buyback $20.00 billion in outstanding shares. This buyback authorization authorizes the financial services provider to reacquire up to 5.6% of its shares through open market purchases. Shares buyback programs are often an indication that the company's leadership believes its shares are undervalued.

Morgan Stanley Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, August 14th. Investors of record on Friday, July 31st were issued a dividend of $1.15 per share. The ex-dividend date of this dividend was Friday, July 31st. This represents a $4.60 annualized dividend and a yield of 2.5%. This is an increase from Morgan Stanley's previous quarterly dividend of $1.00. Morgan Stanley's payout ratio is 37.19%.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the stock. TD Cowen assumed coverage on shares of Morgan Stanley in a research report on Thursday. They issued a "hold" rating and a $210.00 price target for the company. Oppenheimer cut shares of Morgan Stanley from a "market perform" rating to an "underperform" rating in a report on Tuesday, June 30th. Royal Bank Of Canada reiterated a "sector perform" rating and set a $243.00 price objective on shares of Morgan Stanley in a report on Monday, July 20th. Jefferies Financial Group raised Morgan Stanley from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, July 7th. Finally, HSBC boosted their target price on Morgan Stanley from $215.00 to $219.00 and gave the company a "hold" rating in a research note on Monday, September 28th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, Morgan Stanley currently has an average rating of "Moderate Buy" and an average target price of $219.43.

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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