National Bank of Canada FI Acquires 651,750 Shares of Morgan Stanley (NYSE:MS)

Key Points

• National Bank of Canada FI raised its stake in Morgan Stanley by 125.3% in the first quarter, acquiring an additional 651,750 shares to own a total of 1,171,928 shares, valued at approximately $136.7 million.
• Morgan Stanley reported a strong earnings performance with earnings per share of $2.13, surpassing analyst expectations by $0.15, and quarterly revenue increased by 11.8% year-over-year to $16.79 billion.
• The company has announced a quarterly dividend of $1.00, representing an increase from the previous $0.93, and authorized a $20 billion stock buyback plan, indicating confidence in its stock value.

National Bank of Canada FI raised its holdings in shares of Morgan Stanley (NYSE:MS - Free Report) by 125.3% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 1,171,928 shares of the financial services provider's stock after buying an additional 651,750 shares during the period. National Bank of Canada FI owned about 0.07% of Morgan Stanley worth $136,710,000 at the end of the most recent quarter.

Several other institutional investors have also added to or reduced their stakes in the business. AlphaCore Capital LLC increased its stake in shares of Morgan Stanley by 26.3% in the 1st quarter. AlphaCore Capital LLC now owns 6,834 shares of the financial services provider's stock worth $797,000 after purchasing an additional 1,422 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. grew its holdings in 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 valued at $251,231,000 after purchasing an additional 228,039 shares during the period. Y.D. More Investments Ltd increased its position in Morgan Stanley by 11.0% in the first quarter. Y.D. More Investments Ltd now owns 2,147 shares of the financial services provider's stock worth $250,000 after buying an additional 213 shares in the last quarter. Ironwood Investment Counsel LLC raised its stake in shares of Morgan Stanley by 2.2% in the first quarter. Ironwood Investment Counsel LLC now owns 17,129 shares of the financial services provider's stock worth $1,998,000 after buying an additional 366 shares during the period. Finally, CenterBook Partners LP purchased a new position in shares of Morgan Stanley during the 1st quarter valued at about $1,268,000. 84.19% of the stock is currently owned by institutional investors.

Morgan Stanley Price Performance

Shares of Morgan Stanley stock opened at $140.98 on Friday. The firm has a market cap of $225.05 billion, a PE ratio of 15.97, a PEG ratio of 1.77 and a beta of 1.32. The stock has a 50 day moving average of $137.93 and a 200 day moving average of $128.48. 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 12 month low of $92.78 and a 12 month high of $145.48.

Morgan Stanley (NYSE:MS - Get Free Report) last posted its earnings results on Wednesday, July 16th. The financial services provider reported $2.13 EPS for the quarter, beating analysts' consensus estimates of $1.98 by $0.15. Morgan Stanley had a return on equity of 15.20% and a net margin of 13.06%. The firm had revenue of $16.79 billion during the quarter, compared to the consensus estimate of $16.15 billion. During the same period in the prior year, the company earned $1.82 EPS. The company's quarterly revenue was up 11.8% compared to the same quarter last year. On average, research analysts expect that Morgan Stanley will post 8.56 EPS for the current fiscal year.

Morgan Stanley Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 15th. Shareholders of record on Thursday, July 31st will be paid a $1.00 dividend. This represents a $4.00 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date of this dividend 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 45.30%.

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

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the company. Citigroup reiterated a "neutral" rating and set a $130.00 price objective (up from $125.00) on shares of Morgan Stanley in a research note on Wednesday, June 18th. The Goldman Sachs Group increased their price objective on shares of Morgan Stanley from $121.00 to $136.00 and gave the stock a "neutral" rating in a research note on Tuesday, June 10th. JMP Securities restated a "market perform" rating on shares of Morgan Stanley in a research report on Monday, April 14th. Wells Fargo & Company upped their target price on shares of Morgan Stanley from $120.00 to $145.00 and gave the stock an "equal weight" rating in a report on Tuesday, July 8th. Finally, JPMorgan Chase & Co. decreased their price target on Morgan Stanley from $125.00 to $122.00 and set a "neutral" rating on the stock in a report on Monday, April 14th. Nine research analysts have rated the stock with a hold rating, five have given a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $138.25.

Insider Transactions at Morgan Stanley

In other news, insider Andrew M. Saperstein sold 43,566 shares of the company's stock in a transaction dated 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 sale, the insider directly owned 294,250 shares in the company, valued at approximately $41,480,422.50. This represents a 12.90% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Daniel A. Simkowitz sold 29,000 shares of Morgan Stanley stock in a transaction dated Thursday, July 17th. The stock was sold at an average price of $141.13, for a total value of $4,092,770.00. Following the completion of the transaction, the insider owned 399,105 shares of the company's stock, valued at approximately $56,325,688.65. This represents a 6.77% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 148,149 shares of company stock worth $20,841,628. 0.19% of the stock is currently owned by corporate insiders.

Morgan Stanley Company 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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