Morgan Stanley (NYSE:MS) Shares Sold by Central Asset Investments & Management Holdings HK Ltd

Key Points

• Central Asset Investments & Management Holdings HK Ltd reduced its holdings in Morgan Stanley by 78.4%, now owning 2,721 shares valued at approximately $317,000.
• Morgan Stanley announced a quarterly dividend increase to $1.00 per share, representing a yield of 2.8%, with a stock buyback authorization to repurchase up to $20.00 billion in shares.
• Analysts have a mixed outlook on Morgan Stanley, with a consensus rating of "Hold" and an average target price of $138.25, following several adjustments in price targets by major banks.

Central Asset Investments & Management Holdings HK Ltd lowered its holdings in Morgan Stanley (NYSE:MS - Free Report) by 78.4% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 2,721 shares of the financial services provider's stock after selling 9,900 shares during the period. Central Asset Investments & Management Holdings HK Ltd's holdings in Morgan Stanley were worth $317,000 at the end of the most recent reporting period.

Several other hedge funds also recently made changes to their positions in MS. Alley Investment Management Company LLC boosted its holdings in shares of Morgan Stanley by 75.0% in the first quarter. Alley Investment Management Company LLC now owns 62,469 shares of the financial services provider's stock worth $7,288,000 after buying an additional 26,763 shares during the period. Ethic Inc. boosted its holdings in shares of Morgan Stanley by 35.8% in the fourth quarter. Ethic Inc. now owns 162,269 shares of the financial services provider's stock worth $20,400,000 after buying an additional 42,743 shares during the period. Alpha DNA Investment Management LLC boosted its holdings in shares of Morgan Stanley by 112.0% in the fourth quarter. Alpha DNA Investment Management LLC now owns 39,921 shares of the financial services provider's stock worth $5,019,000 after buying an additional 21,090 shares during the period. Capital Advisors Inc. OK boosted its holdings in shares of Morgan Stanley by 2.3% in the first quarter. Capital Advisors Inc. OK now owns 503,118 shares of the financial services provider's stock worth $58,699,000 after buying an additional 11,332 shares during the period. Finally, Pinnacle Financial Partners Inc boosted its holdings in shares of Morgan Stanley by 386.2% in the first quarter. Pinnacle Financial Partners Inc now owns 24,657 shares of the financial services provider's stock worth $2,877,000 after buying an additional 19,586 shares during the period. Institutional investors and hedge funds own 84.19% of the company's stock.

Analyst Ratings Changes

MS has been the subject of several research reports. Citigroup restated a "neutral" rating and set a $130.00 price target (up from $125.00) on shares of Morgan Stanley in a report on Wednesday, June 18th. Wells Fargo & Company upped their price target on shares of Morgan Stanley from $120.00 to $145.00 and gave the stock an "equal weight" rating in a research note on Tuesday, July 8th. JPMorgan Chase & Co. dropped their price target on shares of Morgan Stanley from $125.00 to $122.00 and set a "neutral" rating on the stock in a research note on Monday, April 14th. JMP Securities reaffirmed a "market perform" rating on shares of Morgan Stanley in a research note on Monday, April 14th. Finally, Keefe, Bruyette & Woods raised shares of Morgan Stanley from a "market perform" rating to an "outperform" rating and upped their price target for the stock from $127.00 to $160.00 in a research note on Wednesday, July 9th. Nine analysts have rated the stock with a hold rating, five have issued a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, Morgan Stanley currently has an average rating of "Hold" and a consensus target price of $138.25.

Morgan Stanley Price Performance

Shares of Morgan Stanley stock opened at $143.87 on Tuesday. The firm has a fifty day simple moving average of $138.55 and a 200-day simple moving average of $128.44. The company has a current ratio of 0.78, a quick ratio of 0.78 and a debt-to-equity ratio of 3.30. Morgan Stanley has a 1-year low of $93.54 and a 1-year high of $145.48. The stock has a market capitalization of $229.66 billion, a price-to-earnings ratio of 16.29, a PEG ratio of 1.79 and a beta of 1.32.

Morgan Stanley (NYSE:MS - Get Free Report) last issued its quarterly earnings data 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. Morgan Stanley had a net margin of 13.06% and a return on equity of 15.20%. The business had revenue of $16.79 billion during the quarter, compared to analysts' expectations of $16.15 billion. During the same period in the previous year, the company earned $1.82 earnings per share. Morgan Stanley's revenue for the quarter was up 11.8% on a year-over-year basis. On average, sell-side analysts expect that Morgan Stanley will post 8.56 earnings per share for the current year.

Morgan Stanley Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, August 15th. Investors of record on Thursday, July 31st will be paid a dividend of $1.00 per share. This represents a $4.00 annualized dividend and a yield of 2.8%. The ex-dividend date is Thursday, July 31st. This is an increase from Morgan Stanley's previous quarterly dividend of $0.93. Morgan Stanley's dividend payout ratio is currently 45.30%.

Morgan Stanley announced that its Board of Directors has initiated a stock buyback plan on Tuesday, July 1st that allows the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization allows the financial services provider to reacquire up to 8.9% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's board of directors believes its stock is undervalued.

Insider Activity

In related news, insider Andrew M. Saperstein sold 43,566 shares of the company's stock in a transaction on Thursday, July 17th. The shares were sold at an average price of $140.97, for a total transaction of $6,141,499.02. Following the completion of the transaction, the insider directly owned 294,250 shares in the company, valued at $41,480,422.50. This represents a 12.90% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Sharon Yeshaya sold 25,583 shares of the company's stock in a transaction on Thursday, July 17th. The shares were sold at an average price of $139.81, for a total transaction of $3,576,759.23. Following the transaction, the chief financial officer owned 128,662 shares of the company's stock, valued at approximately $17,988,234.22. The trade was a 16.59% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 148,149 shares of company stock worth $20,841,628. Corporate insiders own 0.19% of the company's stock.

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.

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