Stevens Capital Management LP Buys New Stake in Morgan Stanley (NYSE:MS)

Key Points

• Stevens Capital Management LP purchased a new stake in Morgan Stanley, acquiring 22,607 shares valued at approximately $2.63 million during the first quarter.
• Morgan Stanley recently announced a quarterly dividend increase to $1.00 per share, up from $0.93, resulting in an annualized dividend of $4.00 and a yield of 2.81%.
• The company's Board of Directors has authorized a $20 billion stock repurchase plan, indicating confidence in the stock's valuation and a strategic move to return capital to shareholders.

Stevens Capital Management LP bought a new stake in Morgan Stanley (NYSE:MS - Free Report) during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor bought 22,607 shares of the financial services provider's stock, valued at approximately $2,638,000.

A number of other institutional investors and hedge funds have also recently bought and sold shares of the stock. Alley Investment Management Company LLC lifted its stake in shares of Morgan Stanley by 75.0% during the 1st quarter. Alley Investment Management Company LLC now owns 62,469 shares of the financial services provider's stock worth $7,288,000 after purchasing an additional 26,763 shares during the period. Ethic Inc. lifted its stake in shares of Morgan Stanley by 35.8% during the 4th quarter. Ethic Inc. now owns 162,269 shares of the financial services provider's stock worth $20,400,000 after purchasing an additional 42,743 shares during the period. Pamalican Asset Management Ltd purchased a new position in shares of Morgan Stanley during the 4th quarter worth $4,513,000. Alpha DNA Investment Management LLC lifted its stake in shares of Morgan Stanley by 112.0% during the 4th quarter. Alpha DNA Investment Management LLC now owns 39,921 shares of the financial services provider's stock worth $5,019,000 after purchasing an additional 21,090 shares during the period. Finally, Capital Advisors Inc. OK lifted its stake in shares of Morgan Stanley by 2.3% during the 1st quarter. Capital Advisors Inc. OK now owns 503,118 shares of the financial services provider's stock worth $58,699,000 after purchasing an additional 11,332 shares during the period. Hedge funds and other institutional investors own 84.19% of the company's stock.

Morgan Stanley Stock Up 0.2%

Shares of NYSE MS opened at $142.48 on Friday. Morgan Stanley has a 12-month low of $90.94 and a 12-month high of $145.16. The company has a market cap of $228.58 billion, a P/E ratio of 16.14, a P/E/G ratio of 1.79 and a beta of 1.30. The company has a current ratio of 0.78, a quick ratio of 0.78 and a debt-to-equity ratio of 3.11. The stock has a fifty day moving average price of $135.15 and a 200 day moving average price of $127.63.

Morgan Stanley (NYSE:MS - Get Free Report) last announced its quarterly earnings results on Wednesday, July 16th. The financial services provider reported $2.13 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.98 by $0.15. Morgan Stanley had a return on equity of 15.33% 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 firm earned $1.82 EPS. The firm's quarterly revenue was up 11.8% compared to the same quarter last year. Research analysts anticipate that Morgan Stanley will post 8.56 EPS for the current fiscal year.

Morgan Stanley Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 15th. Stockholders of record on Thursday, July 31st will be paid a dividend of $1.00 per share. The ex-dividend date is Thursday, July 31st. This is an increase from Morgan Stanley's previous quarterly dividend of $0.93. This represents a $4.00 annualized dividend and a dividend yield of 2.81%. Morgan Stanley's dividend payout ratio (DPR) is currently 41.90%.

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

Analyst Upgrades and Downgrades

MS has been the topic of several research reports. Evercore ISI cut their target price on Morgan Stanley from $150.00 to $138.00 and set an "outperform" rating on the stock in a research report on Tuesday, April 1st. Erste Group Bank raised Morgan Stanley from a "hold" rating to a "strong-buy" rating in a research report on Saturday, May 24th. The Goldman Sachs Group increased their target price on Morgan Stanley from $121.00 to $136.00 and gave the stock a "neutral" rating in a research report on Tuesday, June 10th. Bank of America cut their target price on Morgan Stanley from $150.00 to $144.00 and set a "buy" rating on the stock in a research report on Wednesday, April 2nd. Finally, JMP Securities reaffirmed a "market perform" rating on shares of Morgan Stanley in a research report on Monday, April 14th. Nine analysts have rated the stock with a hold rating, five have assigned a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $138.25.

Insider Activity at Morgan Stanley

In other news, insider Daniel A. Simkowitz sold 29,000 shares of the firm's stock in a transaction dated Thursday, July 17th. The stock was sold at an average price of $141.13, for a total transaction of $4,092,770.00. Following the completion of the sale, the insider directly owned 399,105 shares in the company, valued at $56,325,688.65. This trade represents a 6.77% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Andrew M. Saperstein sold 43,566 shares of the firm's stock in a transaction dated Thursday, July 17th. The shares were sold at an average price of $140.97, for a total value of $6,141,499.02. Following the sale, the insider owned 294,250 shares of the company's stock, valued at $41,480,422.50. This represents a 12.90% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 188,949 shares of company stock valued at $25,737,084. 0.19% of the stock is currently owned by insiders.

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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