Morgan Stanley $MS Stock Sold by Gradient Investments LLC

Key Points

• Gradient Investments LLC reduced its Morgan Stanley stake by 8% in the third quarter, selling 25,423 shares and retaining 293,236 shares valued at approximately $55.2 million. Institutional investors collectively own 84.19% of the company.
• Morgan Stanley shares fell 1.3% to $187.27, below their 50-day and 200-day moving averages. Despite the pullback, analysts maintain a “Moderate Buy” consensus with an average price target of roughly $219.
• The company authorized a $20 billion share-repurchase program and raised its quarterly dividend to $1.15 from $1.00, supporting shareholder returns while analysts remain divided between Buy and Hold ratings.

Gradient Investments LLC trimmed its stake in shares of Morgan Stanley (NYSE:MS - Free Report) by 8.0% during the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 293,236 shares of the financial services provider's stock after selling 25,423 shares during the quarter. Gradient Investments LLC's holdings in Morgan Stanley were worth $55,152,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other large investors have also bought and sold shares of MS. Purpose Unlimited Inc. bought a new stake in shares of Morgan Stanley in the fourth quarter worth about $25,000. Marquette Asset Management LLC lifted its holdings in Morgan Stanley by 143.4% in the 2nd 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 during the period. Atlatl Advisers LLC bought a new stake in shares of Morgan Stanley in the 2nd quarter worth approximately $28,000. Hughes Financial Services LLC grew its position in shares of Morgan Stanley by 55.7% in the 2nd quarter. Hughes Financial Services LLC now owns 137 shares of the financial services provider's stock worth $29,000 after buying an additional 49 shares during the last quarter. Finally, Bayban increased its stake in shares of Morgan Stanley by 72.5% during the first quarter. Bayban now owns 188 shares of the financial services provider's stock valued at $31,000 after buying an additional 79 shares during the period. 84.19% of the stock is owned by hedge funds and other institutional investors.

Morgan Stanley News Summary

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

• Positive Sentiment: TD Cowen initiated coverage with a Hold rating but assigned a $210 price target, implying potential upside from recent trading levels. TD Cowen initiates Morgan Stanley coverage
• Positive Sentiment: Jim Cramer backed Morgan Stanley following its pullback, citing the company’s buyback authorization and arguing that the shares could be attractive after the broader financial-sector selloff. Jim Cramer backs Morgan Stanley
• Positive Sentiment: Morgan Stanley proposed converting eight Eaton Vance municipal-bond mutual funds, with nearly $10 billion in assets, into ETFs. The move could support fund flows, product competitiveness and fee-related revenue, although shareholder approval is required. Morgan Stanley ETF conversions
• Positive Sentiment: The firm was selected as a joint lead manager for the United Kingdom’s planned digitally native government bond, creating potential underwriting, distribution and advisory revenue. UK digitally native government bond
• Neutral Sentiment: Unusual options activity showed traders buying 26,930 MS call options, 63% above average daily volume. This may indicate bullish positioning, but it does not guarantee buying in the underlying shares.
• Neutral Sentiment: Wall Street’s average recommendation remains “Moderate Buy,” with an average price target near $219.90, but the consensus includes a sizable number of Hold ratings. Morgan Stanley analyst consensus
• Negative Sentiment: Erste Group downgraded Morgan Stanley from Buy to Hold, adding to concerns about limited near-term upside.
• Negative Sentiment: Preview coverage says Morgan Stanley lacks the usual combination of factors supporting a likely earnings beat in its upcoming report, potentially weighing on expectations despite projected earnings growth. Morgan Stanley earnings expectations

Morgan Stanley Stock Down 1.3%

Morgan Stanley stock traded down $2.44 during mid-day trading on Thursday, hitting $187.27. The company had a trading volume of 2,233,346 shares, compared to its average volume of 6,147,602. Morgan Stanley has a 12 month low of $151.84 and a 12 month high of $232.25. The company has a market capitalization of $295.38 billion, a PE ratio of 15.18, a price-to-earnings-growth ratio of 1.27 and a beta of 1.22. The stock's 50 day moving average price is $208.40 and its two-hundred day moving average price is $202.66. 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 (NYSE:MS - Get Free Report) last announced its quarterly earnings results on Wednesday, July 15th. The financial services provider reported $3.46 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.89 by $0.57. Morgan Stanley had a net margin of 15.65% and a return on equity of 19.31%. The company had revenue of $21.35 billion for the quarter, compared to analysts' expectations of $19.67 billion. During the same quarter in the previous year, the business posted $2.13 EPS. Morgan Stanley's revenue was up 27.1% compared to the same quarter last year. As a group, sell-side analysts anticipate that Morgan Stanley will post 12.68 earnings per share for the current fiscal year.

Morgan Stanley announced that its Board of Directors has approved a stock repurchase plan on Wednesday, June 24th that allows the company to buyback $20.00 billion in outstanding shares. This buyback authorization allows the financial services provider to repurchase up to 5.6% of its stock through open market purchases. Stock buyback plans are often an indication that the company's management believes its stock is undervalued.

Morgan Stanley Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Friday, July 31st were paid a $1.15 dividend. This is a boost from Morgan Stanley's previous quarterly dividend of $1.00. This represents a $4.60 annualized dividend and a dividend yield of 2.5%. The ex-dividend date was Friday, July 31st. Morgan Stanley's payout ratio is currently 37.19%.

Analyst Ratings Changes

Several analysts recently weighed in on the stock. Evercore reiterated an "outperform" rating on shares of Morgan Stanley in a report on Monday, July 6th. Royal Bank Of Canada reiterated a "sector perform" rating and set a $243.00 price target on shares of Morgan Stanley in a research report on Monday, July 20th. HSBC raised their price objective on shares of Morgan Stanley from $215.00 to $219.00 and gave the stock a "hold" rating in a report on Monday, September 28th. Bank of America upped their target price on Morgan Stanley from $225.00 to $250.00 and gave the stock a "buy" rating in a report on Tuesday, July 7th. Finally, Zacks Research lowered Morgan Stanley from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, September 30th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus 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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