Morgan Stanley (NYSE:MS) Downgraded to Hold Rating by Zacks Research

Key Points

• Zacks Research downgraded Morgan Stanley from strong-buy to hold, adding to a mixed but still generally constructive analyst backdrop for the stock.
• Despite the downgrade, Morgan Stanley’s recent quarterly results were strong: it beat EPS and revenue estimates, with earnings of $3.43 per share and revenue of $20.58 billion, both above consensus.
• The stock has been trading near its 52-week high around $203.90, while analysts overall maintain a Moderate Buy consensus with an average price target of $205.95.

Morgan Stanley (NYSE:MS - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a note issued to investors on Wednesday,Zacks.com reports.

MS has been the topic of several other research reports. Evercore increased their price target on Morgan Stanley from $190.00 to $210.00 and gave the stock an "outperform" rating in a report on Thursday, April 16th. Citigroup increased their price target on Morgan Stanley from $170.00 to $194.00 and gave the stock a "neutral" rating in a report on Friday, May 8th. BNP Paribas Exane increased their price target on Morgan Stanley from $195.00 to $205.00 and gave the stock a "neutral" rating in a report on Friday, April 24th. Jefferies Financial Group lowered Morgan Stanley from a "strong-buy" rating to a "hold" rating in a report on Monday, March 9th. Finally, Barclays increased their price target on Morgan Stanley from $219.00 to $230.00 and gave the stock an "overweight" rating in a report on Thursday, April 16th. Twelve investment analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $205.95.

Morgan Stanley Trading Up 1.1%

MS opened at $203.90 on Wednesday. Morgan Stanley has a 1-year low of $126.35 and a 1-year high of $204.38. The company has a current ratio of 0.77, a quick ratio of 0.77 and a debt-to-equity ratio of 3.52. The company has a market cap of $321.60 billion, a P/E ratio of 18.47, a price-to-earnings-growth ratio of 1.51 and a beta of 1.22. The company has a fifty day moving average price of $182.79 and a two-hundred day moving average price of $177.18.

Morgan Stanley (NYSE:MS - Get Free Report) last posted its quarterly earnings results on Wednesday, April 15th. The financial services provider reported $3.43 earnings per share for the quarter, beating the consensus estimate of $3.02 by $0.41. Morgan Stanley had a net margin of 14.65% and a return on equity of 17.70%. The firm had revenue of $20.58 billion during the quarter, compared to the consensus estimate of $19.23 billion. During the same period in the previous year, the firm posted $2.60 earnings per share. The business's revenue was up 16.0% compared to the same quarter last year. Analysts predict that Morgan Stanley will post 11.85 EPS for the current fiscal year.

Insider Transactions at Morgan Stanley

In other news, insider Daniel A. Simkowitz sold 14,690 shares of the business's stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $189.24, for a total transaction of $2,779,935.60. Following the completion of the sale, the insider directly owned 365,802 shares of the company's stock, valued at $69,224,370.48. The trade was a 3.86% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Andrew M. Saperstein sold 51,668 shares of the business's stock in a transaction dated Thursday, April 16th. The stock was sold at an average price of $188.59, for a total transaction of $9,744,068.12. Following the sale, the insider directly owned 282,142 shares of the company's stock, valued at approximately $53,209,159.78. The trade was a 15.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 77,476 shares of company stock valued at $14,644,762 over the last three months. Corporate insiders own 0.17% of the company's stock.

Institutional Investors Weigh In On Morgan Stanley

A number of institutional investors have recently added to or reduced their stakes in the company. Carlson Capital L.P. bought a new stake in Morgan Stanley in the 1st quarter worth about $1,429,000. Allen Capital Group LLC grew its position in Morgan Stanley by 1.3% in the 1st quarter. Allen Capital Group LLC now owns 4,546 shares of the financial services provider's stock worth $748,000 after purchasing an additional 60 shares in the last quarter. Axiom Investment Management LLC bought a new stake in Morgan Stanley in the 1st quarter worth about $230,000. Summitry LLC grew its position in Morgan Stanley by 8.8% in the 1st quarter. Summitry LLC now owns 1,705 shares of the financial services provider's stock worth $281,000 after purchasing an additional 138 shares in the last quarter. Finally, Groupama Asset Managment increased its position in shares of Morgan Stanley by 1.0% during the first quarter. Groupama Asset Managment now owns 293,381 shares of the financial services provider's stock valued at $48,282,000 after acquiring an additional 2,871 shares during the last quarter. 84.19% of the stock is owned by institutional investors.

Key Morgan Stanley News

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

• Positive Sentiment: Morgan Stanley continued to benefit from strong recent earnings, with the company having recently beaten consensus on both EPS and revenue, reinforcing confidence in its operating performance.
• Positive Sentiment: Recent commentary highlighted “record revenue” and rising dividends, which can help attract income-focused investors and support the stock’s valuation. Record Revenue, Rising Dividends—So Why Aren't Analysts Saying Buy? (MS)
• Positive Sentiment: Analyst coverage remains constructive overall, including multiple buy-equivalent ratings and a recent price target of $610 from Morgan Stanley analyst Manan Gosalia on Broadcom-related coverage, which reflects the firm’s continued visibility across key growth themes.
• Neutral Sentiment: Some articles mention Morgan Stanley in connection with broader market calls and conference sponsorships, which are not direct catalysts for MS shares but keep the firm in the headlines.

Morgan Stanley Company Profile

Morgan Stanley NYSE: MS is a global financial services firm headquartered in New York City. Founded in 1935 by Henry S. Morgan and Harold Stanley, the company provides a broad range of investment banking, securities, wealth management and investment management services to corporations, governments, institutions and individual investors. Leadership has been guided by a senior executive team and board of directors; James P. Gorman has served as the company's chief executive and chairman in recent years.

The firm's primary business activities are organized around three principal businesses: Institutional Securities, Wealth Management and Investment Management.

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