Prudential PLC Has $14.96 Million Stock Position in Morgan Stanley (NYSE:MS)

Key Points

• Prudential PLC reduced its stake in Morgan Stanley by 17.8% during the first quarter, bringing its holdings to approximately $14.96 million.
• In related activity, Morgan Stanley's insiders sold 148,149 shares worth about $20.8 million in the past 90 days, reflecting a decrease in their ownership.
• The company's Board of Directors has initiated a $20 billion stock buyback plan, which signals confidence in the company's value and allows repurchases of up to 8.9% of its outstanding shares.

Prudential PLC lowered its position in shares of Morgan Stanley (NYSE:MS - Free Report) by 17.8% in the first quarter, according to its most recent disclosure with the SEC. The institutional investor owned 128,189 shares of the financial services provider's stock after selling 27,748 shares during the quarter. Prudential PLC's holdings in Morgan Stanley were worth $14,956,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently modified their holdings of the company. Resona Asset Management Co. Ltd. lifted its holdings in shares of Morgan Stanley by 7.6% during the first quarter. Resona Asset Management Co. Ltd. now owns 395,862 shares of the financial services provider's stock worth $46,102,000 after buying an additional 28,125 shares in the last quarter. Rathbones Group PLC lifted its holdings in shares of Morgan Stanley by 8.1% during the first quarter. Rathbones Group PLC now owns 705,313 shares of the financial services provider's stock worth $82,289,000 after buying an additional 52,778 shares in the last quarter. Westpac Banking Corp raised its stake in Morgan Stanley by 22.8% in the first quarter. Westpac Banking Corp now owns 46,310 shares of the financial services provider's stock valued at $5,403,000 after purchasing an additional 8,601 shares in the last quarter. Tlwm raised its stake in Morgan Stanley by 1.8% in the first quarter. Tlwm now owns 13,863 shares of the financial services provider's stock valued at $1,617,000 after purchasing an additional 248 shares in the last quarter. Finally, Rossmore Private Capital raised its stake in Morgan Stanley by 7.9% in the first quarter. Rossmore Private Capital now owns 12,837 shares of the financial services provider's stock valued at $1,498,000 after purchasing an additional 939 shares in the last quarter. Institutional investors and hedge funds own 84.19% of the company's stock.

Insider Activity at Morgan Stanley

In related news, insider Daniel A. Simkowitz sold 29,000 shares of the company's stock in a transaction that occurred on 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 sale, the insider directly owned 399,105 shares in the company, valued at $56,325,688.65. This represents a 6.77% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Charles A. Smith sold 20,000 shares of the company's stock in a transaction that occurred on Thursday, July 17th. The shares were sold at an average price of $140.30, for a total value of $2,806,000.00. Following the completion of the sale, the insider owned 119,239 shares in the company, valued at $16,729,231.70. The trade was a 14.36% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 148,149 shares of company stock valued at $20,841,628. Corporate insiders own 0.19% of the company's stock.

Morgan Stanley Stock Performance

NYSE:MS opened at $143.87 on Tuesday. The stock has a market cap of $229.66 billion, a P/E ratio of 16.29, a price-to-earnings-growth ratio of 1.79 and a beta of 1.32. The company has a current ratio of 0.78, a quick ratio of 0.78 and a debt-to-equity ratio of 3.30. The stock's 50-day moving average is $138.55 and its 200-day moving average is $128.44. Morgan Stanley has a 1-year low of $93.54 and a 1-year high of $145.48.

Morgan Stanley (NYSE:MS - Get Free Report) last released its quarterly earnings results on Wednesday, July 16th. The financial services provider reported $2.13 earnings per share for the quarter, topping the consensus estimate of $1.98 by $0.15. The company had revenue of $16.79 billion for the quarter, compared to analysts' expectations of $16.15 billion. Morgan Stanley had a return on equity of 15.20% and a net margin of 13.06%. The business's quarterly revenue was up 11.8% compared to the same quarter last year. During the same period in the previous year, the business posted $1.82 earnings per share. Equities research analysts anticipate that Morgan Stanley will post 8.56 earnings per share for the current year.

Morgan Stanley declared 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 repurchase up to 8.9% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's board believes its shares are undervalued.

Morgan Stanley Increases Dividend

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

Analysts Set New Price Targets

A number of research analysts recently commented on MS shares. Erste Group Bank raised Morgan Stanley from a "hold" rating to a "strong-buy" rating in a research note on Saturday, May 24th. Wells Fargo & Company boosted their price target on Morgan Stanley from $120.00 to $145.00 and gave the company an "equal weight" rating in a research note on Tuesday, July 8th. JMP Securities reaffirmed a "market perform" rating on shares of Morgan Stanley in a research note on Monday, April 14th. Citigroup reaffirmed a "neutral" rating and issued a $130.00 price target (up previously from $125.00) on shares of Morgan Stanley in a research note on Wednesday, June 18th. Finally, JPMorgan Chase & Co. dropped their price target on Morgan Stanley from $125.00 to $122.00 and set a "neutral" rating for the company in a research note on Monday, April 14th. Nine equities research 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 company. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $138.25.

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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