Morgan Stanley (NYSE:MS) Hits New 1-Year High - Here's What Happened

Key Points

• Morgan Stanley's stock reached a new 52-week high of $152.82 during trading, closing at $152.22 with a volume of over 6.6 million shares.
• The company's recent earnings report showed an EPS of $2.13, surpassing estimates and representing an 11.8% year-over-year revenue increase.
• Morgan Stanley announced a quarterly dividend increase to $1.00 per share, reflecting a positive change from the previous amount of $0.93, and also approved a stock buyback program worth $20 billion.

Morgan Stanley (NYSE:MS - Get Free Report) shares hit a new 52-week high during trading on Wednesday . The company traded as high as $152.82 and last traded at $152.22, with a volume of 6669503 shares changing hands. The stock had previously closed at $148.79.

Analyst Ratings Changes

A number of research firms have recently commented on MS. Keefe, Bruyette & Woods upgraded Morgan Stanley from a "market perform" rating to an "outperform" rating and lifted their target price for the stock from $127.00 to $160.00 in a research note on Wednesday, July 9th. Wells Fargo & Company raised their target price on Morgan Stanley from $120.00 to $145.00 and gave the stock an "equal weight" rating in a research report on Tuesday, July 8th. The Goldman Sachs Group raised 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. Erste Group Bank raised Morgan Stanley from a "hold" rating to a "strong-buy" rating in a research report on Saturday, May 24th. Finally, Citigroup reissued a "neutral" rating and issued a $130.00 target price (up from $125.00) on shares of Morgan Stanley in a research report on Wednesday, June 18th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and nine have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $138.25.

Morgan Stanley Stock Performance

The company has a 50-day moving average price of $144.60 and a two-hundred day moving average price of $129.96. The stock has a market capitalization of $242.99 billion, a P/E ratio of 17.24, a PEG ratio of 1.85 and a beta of 1.33. The company has a quick ratio of 0.78, a current ratio of 0.78 and a debt-to-equity ratio of 3.30.

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

Morgan Stanley Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 15th. Investors of record on Thursday, July 31st were given a dividend of $1.00 per share. The ex-dividend date was Thursday, July 31st. This is a positive change from Morgan Stanley's previous quarterly dividend of $0.93. This represents a $4.00 annualized dividend and a yield of 2.6%. Morgan Stanley's dividend payout ratio (DPR) is presently 45.30%.

Morgan Stanley declared that its board has approved a stock buyback program 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 programs are typically an indication that the company's leadership believes its shares are undervalued.

Insider Buying and Selling at Morgan Stanley

In related news, CFO Sharon Yeshaya sold 25,583 shares of the business's stock in a transaction dated 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 directly owned 128,662 shares in the company, valued at $17,988,234.22. The trade was a 16.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Andrew M. Saperstein sold 43,566 shares of the business's stock in a transaction dated Thursday, July 17th. The stock was sold at an average price of $140.97, for a total value of $6,141,499.02. Following the transaction, the insider owned 294,250 shares of the company's stock, valued at approximately $41,480,422.50. The trade was a 12.90% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 148,149 shares of company stock valued at $20,841,628 over the last 90 days. Insiders own 0.19% of the company's stock.

Institutional Trading of Morgan Stanley

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Minot DeBlois Advisors LLC bought a new position in shares of Morgan Stanley during the fourth quarter valued at approximately $25,000. CBIZ Investment Advisory Services LLC raised its position in shares of Morgan Stanley by 111.0% in the 1st quarter. CBIZ Investment Advisory Services LLC now owns 211 shares of the financial services provider's stock worth $25,000 after acquiring an additional 111 shares in the last quarter. Princeton Global Asset Management LLC raised its position in shares of Morgan Stanley by 645.8% in the 2nd quarter. Princeton Global Asset Management LLC now owns 179 shares of the financial services provider's stock worth $25,000 after acquiring an additional 155 shares in the last quarter. MorganRosel Wealth Management LLC bought a new position in shares of Morgan Stanley in the 1st quarter worth approximately $27,000. Finally, WFA of San Diego LLC bought a new position in Morgan Stanley during the 2nd quarter valued at approximately $28,000. Hedge funds and other institutional investors own 84.19% of the company's stock.

About Morgan Stanley

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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