US Bancorp DE Trims Stock Holdings in Morgan Stanley (NYSE:MS)

Key Points

• US Bancorp DE has reduced its stake in Morgan Stanley by 1.0%, bringing its total holdings to 753,401 shares valued at $87.9 million.
• Morgan Stanley recently increased its quarterly dividend from $0.93 to $1.00 per share, representing a 2.9% yield.
• The company's board has authorized a stock repurchase plan allowing for up to $20 billion in share buybacks, signaling confidence in its stock's valuation.

US Bancorp DE lowered its stake in shares of Morgan Stanley (NYSE:MS - Free Report) by 1.0% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 753,401 shares of the financial services provider's stock after selling 7,518 shares during the period. US Bancorp DE's holdings in Morgan Stanley were worth $87,900,000 at the end of the most recent reporting period.

A number of other large investors have also recently made changes to their positions in the stock. Omnia Family Wealth LLC lifted its stake in Morgan Stanley by 2.5% in the 4th quarter. Omnia Family Wealth LLC now owns 3,140 shares of the financial services provider's stock worth $395,000 after purchasing an additional 77 shares in the last quarter. Continuum Advisory LLC grew its holdings in shares of Morgan Stanley by 2.5% during the fourth quarter. Continuum Advisory LLC now owns 3,638 shares of the financial services provider's stock worth $457,000 after purchasing an additional 87 shares in the last quarter. Insight Inv LLC lifted its position in Morgan Stanley by 0.5% during the first quarter. Insight Inv LLC now owns 18,378 shares of the financial services provider's stock valued at $2,144,000 after purchasing an additional 88 shares during the last quarter. Vivaldi Capital Management LP grew its stake in Morgan Stanley by 1.8% in the 4th quarter. Vivaldi Capital Management LP now owns 5,096 shares of the financial services provider's stock worth $696,000 after buying an additional 90 shares in the last quarter. Finally, Jacobsen Capital Management increased its holdings in shares of Morgan Stanley by 4.2% in the 1st quarter. Jacobsen Capital Management now owns 2,212 shares of the financial services provider's stock worth $258,000 after buying an additional 90 shares during the last quarter. 84.19% of the stock is owned by institutional investors.

Morgan Stanley Price Performance

Shares of Morgan Stanley stock opened at $139.09 on Friday. The company has a debt-to-equity ratio of 3.11, a current ratio of 0.78 and a quick ratio of 0.78. Morgan Stanley has a one year low of $90.94 and a one year high of $145.48. The business's 50 day simple moving average is $136.87 and its two-hundred day simple moving average is $128.33. The stock has a market capitalization of $223.14 billion, a P/E ratio of 15.75, a price-to-earnings-growth ratio of 1.79 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 the consensus estimate of $1.98 by $0.15. Morgan Stanley had a net margin of 13.06% and a return on equity of 15.33%. The firm had revenue of $16.79 billion for the quarter, compared to analysts' expectations of $16.15 billion. During the same quarter last year, the business earned $1.82 earnings per share. The business's revenue was up 11.8% on a year-over-year basis. Analysts forecast that Morgan Stanley will post 8.56 EPS for the current year.

Morgan Stanley Increases Dividend

The company also recently disclosed 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. This represents a $4.00 annualized dividend and a dividend yield of 2.9%. This is a positive change from Morgan Stanley's previous quarterly dividend of $0.93. The ex-dividend date of this dividend is Thursday, July 31st. Morgan Stanley's payout ratio is currently 45.30%.

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

Analysts Set New Price Targets

A number of analysts have recently issued reports 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. 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 research note on Tuesday, July 8th. The Goldman Sachs Group upped their price objective on Morgan Stanley from $121.00 to $136.00 and gave the stock a "neutral" rating in a report on Tuesday, June 10th. JMP Securities reissued a "market perform" rating on shares of Morgan Stanley in a report on Monday, April 14th. Finally, JPMorgan Chase & Co. cut their target price 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 research 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 stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $138.25.

Insider Activity

In other Morgan Stanley news, CFO Sharon Yeshaya sold 25,583 shares of the company's stock in a transaction that occurred on Thursday, July 17th. The stock was sold at an average price of $139.81, for a total transaction of $3,576,759.23. Following the completion of the transaction, the chief financial officer owned 128,662 shares of the company's stock, valued at $17,988,234.22. This represents a 16.59% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Michael A. Pizzi sold 18,000 shares of the stock in a transaction that occurred on Thursday, July 17th. The stock was sold at an average price of $140.62, for a total value of $2,531,160.00. Following the completion of the sale, the insider owned 136,407 shares of the company's stock, valued at approximately $19,181,552.34. This trade represents a 11.66% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 148,149 shares of company stock valued at $20,841,628. 0.19% of the stock is 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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