Tompkins Financial Corp Buys New Position in Morgan Stanley $MS

Key Points

• Tompkins Financial Corp. purchased 16,732 Morgan Stanley shares during the third quarter, valued at approximately $3.15 million. Institutional investors collectively own 84.19% of the company’s stock.
• Morgan Stanley reported stronger-than-expected quarterly results, with EPS of $3.46 and revenue of $21.35 billion, representing 27.1% year-over-year growth. The company also raised its quarterly dividend to $1.15 and authorized a $20 billion share-buyback program.
• Analysts maintain a consensus “Moderate Buy” rating with an average price target of $221.65, although recent target revisions have been mixed. Shares recently traded at $190.24, below the consensus target.

Tompkins Financial Corp purchased a new position in Morgan Stanley (NYSE:MS - Free Report) during the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund purchased 16,732 shares of the financial services provider's stock, valued at approximately $3,147,000.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. Financiere des Professionnels Fonds d investissement inc. purchased a new position in shares of Morgan Stanley in the first quarter worth $8,854,000. Diversify Wealth Management LLC increased its position in shares of Morgan Stanley by 201.0% in the 1st quarter. Diversify Wealth Management LLC now owns 17,559 shares of the financial services provider's stock valued at $2,890,000 after acquiring an additional 11,726 shares during the period. Mirae Asset Global Investments Co. Ltd. raised its stake in Morgan Stanley by 10.9% in the 2nd quarter. Mirae Asset Global Investments Co. Ltd. now owns 294,047 shares of the financial services provider's stock worth $61,468,000 after acquiring an additional 28,877 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in Morgan Stanley by 0.9% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 9,171,655 shares of the financial services provider's stock worth $1,628,244,000 after acquiring an additional 83,472 shares during the last quarter. Finally, California Public Employees Retirement System lifted its position in Morgan Stanley by 13.4% during the 1st quarter. California Public Employees Retirement System now owns 2,422,284 shares of the financial services provider's stock worth $398,635,000 after acquiring an additional 287,056 shares during the period. Hedge funds and other institutional investors own 84.19% of the company's stock.

Morgan Stanley Stock Performance

Shares of MS traded down $0.07 during trading hours on Monday, hitting $190.24. The stock had a trading volume of 1,880,591 shares, compared to its average volume of 6,168,471. Morgan Stanley has a fifty-two week low of $151.84 and a fifty-two week high of $232.25. The company has a debt-to-equity ratio of 3.65, a quick ratio of 0.79 and a current ratio of 0.79. The firm has a 50-day moving average price of $209.57 and a 200 day moving average price of $201.99. The firm has a market capitalization of $300.07 billion, a price-to-earnings ratio of 15.37, a PEG ratio of 1.36 and a beta of 1.22.

Morgan Stanley (NYSE:MS - Get Free Report) last posted its earnings results on Wednesday, July 15th. The financial services provider reported $3.46 EPS for the quarter, beating analysts' consensus estimates of $2.89 by $0.57. The firm had revenue of $21.35 billion for the quarter, compared to analysts' expectations of $19.67 billion. Morgan Stanley had a return on equity of 19.31% and a net margin of 15.65%.The company's quarterly revenue was up 27.1% on a year-over-year basis. During the same period last year, the firm earned $2.13 EPS. As a group, research analysts anticipate that Morgan Stanley will post 12.75 EPS for the current year.

Morgan Stanley Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Friday, July 31st were given a $1.15 dividend. This represents a $4.60 dividend on an annualized basis and a dividend yield of 2.4%. This is a boost from Morgan Stanley's previous quarterly dividend of $1.00. The ex-dividend date was Friday, July 31st. Morgan Stanley's dividend payout ratio (DPR) is presently 37.19%.

Morgan Stanley declared that its board has initiated a stock buyback plan on Wednesday, June 24th that authorizes the company to buyback $20.00 billion in outstanding shares. This buyback authorization authorizes the financial services provider to purchase up to 5.6% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's leadership believes its stock is undervalued.

Analyst Upgrades and Downgrades

Several analysts have weighed in on the company. Wells Fargo & Company dropped their price target on Morgan Stanley from $240.00 to $223.00 and set an "equal weight" rating on the stock in a research note on Friday, September 25th. Citigroup decreased their target price on Morgan Stanley from $235.00 to $210.00 and set a "neutral" rating for the company in a report on Wednesday, September 30th. HSBC upped their target price on Morgan Stanley from $215.00 to $219.00 and gave the company a "hold" rating in a research report on Monday, September 28th. Keefe, Bruyette & Woods increased their price target on shares of Morgan Stanley from $225.00 to $250.00 and gave the stock an "outperform" rating in a report on Thursday, July 16th. Finally, BMO Capital Markets lifted their price objective on shares of Morgan Stanley from $240.00 to $250.00 and gave the company an "outperform" rating in a research note on Friday, July 17th. Two research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $221.65.

Key Stories Impacting Morgan Stanley

Here are the key news stories impacting Morgan Stanley this week:

• Positive Sentiment: Morgan Stanley strategists expect an earnings-led improvement in industrial stocks and believe the gap between the S&P 500 and weaker market breadth could narrow. This outlook supports the firm’s investment-banking, trading and wealth-management businesses if market participation and corporate activity broaden. Morgan Stanley’s Wilson Sees Earnings-Led Upturn in Industrials
• Positive Sentiment: The firm’s analysts remain constructive on several companies, including Seagate, Western Digital, Continental and Nvidia. Continued high-profile research activity can reinforce Morgan Stanley’s advisory franchise and potentially benefit investment-banking and institutional-equities revenue. Seagate and Western Digital Stocks Rebound as Morgan Stanley Says Get Aggressive
• Neutral Sentiment: An analysis of Morgan Stanley’s economic moat highlights its shift from a market-dependent trading house toward a more diversified wealth-management and investment-banking model. The assessment is strategically encouraging but does not represent a new earnings forecast or corporate announcement. What is Morgan Stanley’s Economic Moat, and is it Widening or Narrowing?
• Negative Sentiment: Morgan Stanley disclosed a substantial reduction in its Polaris position, a portfolio-management decision that may create a modestly negative read-through for sentiment but does not indicate a change in Morgan Stanley’s own fundamentals. Polaris Institutional Holdings Update

About Morgan Stanley

Morgan Stanley is a global financial services firm serving corporations, governments, financial institutions, individuals and other investors. The company provides investment banking and advisory services, including mergers and acquisitions advice, equity and debt underwriting, securities sales and trading, and corporate lending.

Through its Wealth Management business, Morgan Stanley offers financial planning, brokerage, investment advisory and banking services to individual investors, businesses and institutions.

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