Morgan Stanley (NYSE:MS) Shares Sold by Fayez Sarofim & Co

Key Points

• Fayez Sarofim & Co reduced its holdings in Morgan Stanley by 9.3%, selling 208,271 shares, and now owns approximately 0.13% of the company worth $236.89 million.
• Morgan Stanley's recent earnings report showed an EPS of $2.13, exceeding analyst expectations, with a revenue of $16.79 billion, reflecting an 11.8% year-over-year increase.
• The company has authorized a $20 billion share buyback program, indicating a belief that its stock is undervalued, alongside announcing an increased quarterly dividend from $0.93 to $1.00 per share.

Fayez Sarofim & Co lowered its holdings in Morgan Stanley (NYSE:MS - Free Report) by 9.3% in the first quarter, according to its most recent disclosure with the SEC. The institutional investor owned 2,030,443 shares of the financial services provider's stock after selling 208,271 shares during the period. Fayez Sarofim & Co owned approximately 0.13% of Morgan Stanley worth $236,892,000 at the end of the most recent reporting period.

Other hedge funds also recently added to or reduced their stakes in the company. Mitsubishi UFJ Asset Management Co. Ltd. increased its position in shares of Morgan Stanley by 11.8% during the first quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 2,153,343 shares of the financial services provider's stock worth $251,231,000 after acquiring an additional 228,039 shares during the period. Y.D. More Investments Ltd grew its stake in Morgan Stanley by 11.0% during the 1st quarter. Y.D. More Investments Ltd now owns 2,147 shares of the financial services provider's stock worth $250,000 after purchasing an additional 213 shares in the last quarter. Ironwood Investment Counsel LLC increased its holdings in Morgan Stanley by 2.2% during the 1st quarter. Ironwood Investment Counsel LLC now owns 17,129 shares of the financial services provider's stock worth $1,998,000 after purchasing an additional 366 shares during the period. CenterBook Partners LP purchased a new stake in Morgan Stanley during the 1st quarter worth about $1,268,000. Finally, Headlands Technologies LLC acquired a new stake in Morgan Stanley in the 1st quarter valued at about $57,000. 84.19% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In related news, CFO Sharon Yeshaya sold 25,583 shares of the business's stock in a transaction dated Thursday, July 17th. The shares were sold at an average price of $139.81, for a total value of $3,576,759.23. Following the sale, the chief financial officer directly owned 128,662 shares in the company, valued at $17,988,234.22. The trade was a 16.59% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Michael A. Pizzi sold 18,000 shares of the stock in a transaction that occurred on Thursday, July 17th. The shares were sold at an average price of $140.62, for a total transaction of $2,531,160.00. Following the completion of the sale, the insider owned 136,407 shares in the company, valued at $19,181,552.34. This represents a 11.66% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 148,149 shares of company stock valued at $20,841,628 in the last 90 days. Insiders own 0.19% of the company's stock.

Morgan Stanley Stock Up 0.6%

Shares of NYSE:MS opened at $141.33 on Thursday. Morgan Stanley has a fifty-two week low of $92.01 and a fifty-two week high of $145.48. The company has a quick ratio of 0.78, a current ratio of 0.78 and a debt-to-equity ratio of 3.30. The firm's 50-day simple moving average is $137.68 and its 200-day simple moving average is $128.45. The company has a market cap of $225.61 billion, a price-to-earnings ratio of 16.01, a PEG ratio of 1.76 and a beta of 1.32.

Morgan Stanley (NYSE:MS - Get Free Report) last issued its earnings results on Wednesday, July 16th. The financial services provider reported $2.13 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.98 by $0.15. The business 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 company's revenue for the quarter was up 11.8% on a year-over-year basis. During the same period in the prior year, the business posted $1.82 EPS. As a group, equities research analysts predict that Morgan Stanley will post 8.56 earnings per share for the current year.

Morgan Stanley declared that its Board of Directors has authorized a share repurchase program on Tuesday, July 1st that allows the company to buyback $20.00 billion in outstanding shares. This buyback authorization allows the financial services provider to buy up to 8.9% of its shares through open market purchases. Shares buyback programs are often an indication that the company's leadership believes its stock is undervalued.

Morgan Stanley Increases Dividend

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

Analysts Set New Price Targets

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

Morgan Stanley Profile

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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