Morgan Stanley (NYSE:MS) Hits New 52-Week High - What's Next?

Key Points

• Morgan Stanley shares reached a new 52-week high of $158.48, with a last trading price of $156.60 and a trading volume of nearly 4.83 million shares.
• The company recently increased its quarterly dividend to $1.00 per share, up from $0.93, representing a 2.6% dividend yield.
• Analysts have given Morgan Stanley a consensus rating of "Hold" with an average target price of $138.25, amidst various upgrades and downgrades from different investment firms.

Shares of Morgan Stanley (NYSE:MS - Get Free Report) hit a new 52-week high on Tuesday . The stock traded as high as $158.48 and last traded at $156.60, with a volume of 4829891 shares traded. The stock had previously closed at $156.39.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on MS shares. Citigroup reiterated a "neutral" rating and issued a $130.00 price target (up from $125.00) on shares of Morgan Stanley in a report on Wednesday, June 18th. Keefe, Bruyette & Woods upgraded Morgan Stanley from a "market perform" rating to an "outperform" rating and increased their price objective for the company from $127.00 to $160.00 in a report on Wednesday, July 9th. The Goldman Sachs Group increased their price objective on Morgan Stanley from $121.00 to $136.00 and gave the company a "neutral" rating in a report on Tuesday, June 10th. Erste Group Bank raised shares of Morgan Stanley from a "hold" rating to a "strong-buy" rating in a report on Saturday, May 24th. Finally, Wells Fargo & Company boosted their price objective on shares of Morgan Stanley from $120.00 to $145.00 and gave the company an "equal weight" rating in a report on Tuesday, July 8th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and nine have issued a Hold rating to the stock. According to data from MarketBeat.com, Morgan Stanley has a consensus rating of "Hold" and an average target price of $138.25.

Morgan Stanley Trading Up 0.1%

The company has a current ratio of 0.78, a quick ratio of 0.78 and a debt-to-equity ratio of 3.30. The company has a fifty day simple moving average of $145.56 and a 200-day simple moving average of $130.66. The company has a market capitalization of $249.99 billion, a PE ratio of 17.74, a PEG ratio of 1.94 and a beta of 1.33.

Morgan Stanley (NYSE:MS - Get Free Report) last released its quarterly 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 analyst estimates of $16.15 billion. During the same period last year, the business posted $1.82 earnings per share. The company's quarterly revenue was up 11.8% on a year-over-year basis. Analysts predict 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 was paid on Friday, August 15th. Stockholders of record on Thursday, July 31st were given a dividend of $1.00 per share. This is an increase from Morgan Stanley's previous quarterly dividend of $0.93. The ex-dividend date of this dividend was Thursday, July 31st. This represents a $4.00 annualized dividend and a dividend yield of 2.6%. Morgan Stanley's dividend payout ratio is presently 45.30%.

Morgan Stanley announced that its board has initiated a stock buyback program on Tuesday, July 1st that permits the company to buyback $20.00 billion in shares. This buyback authorization permits the financial services provider to repurchase up to 8.9% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's management believes its shares are undervalued.

Insider Transactions at Morgan Stanley

In related news, insider Charles A. Smith sold 20,000 shares of the stock in a transaction on Thursday, July 17th. The shares were sold at an average price of $140.30, for a total value of $2,806,000.00. Following the transaction, the insider directly owned 119,239 shares of the company's stock, valued at $16,729,231.70. This trade represents a 14.36% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Daniel A. Simkowitz sold 29,000 shares of the stock in a transaction on Thursday, July 17th. The shares were sold at an average price of $141.13, for a total transaction of $4,092,770.00. Following the completion of the transaction, 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 disclosure for this sale can be found here. Over the last three months, insiders sold 148,149 shares of company stock worth $20,841,628. Insiders own 0.19% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Valeo Financial Advisors LLC grew its position in Morgan Stanley by 10.0% during the 2nd quarter. Valeo Financial Advisors LLC now owns 18,588 shares of the financial services provider's stock worth $2,618,000 after purchasing an additional 1,696 shares during the last quarter. SevenBridge Financial Group LLC grew its position in Morgan Stanley by 5.7% during the 2nd quarter. SevenBridge Financial Group LLC now owns 40,006 shares of the financial services provider's stock worth $5,892,000 after purchasing an additional 2,161 shares during the last quarter. Osaic Holdings Inc. grew its position in Morgan Stanley by 57.2% during the 2nd quarter. Osaic Holdings Inc. now owns 258,225 shares of the financial services provider's stock worth $34,303,000 after purchasing an additional 93,961 shares during the last quarter. American Trust purchased a new position in Morgan Stanley during the 2nd quarter worth $268,000. Finally, Centaurus Financial Inc. raised its stake in shares of Morgan Stanley by 13.6% during the second quarter. Centaurus Financial Inc. now owns 12,252 shares of the financial services provider's stock worth $1,726,000 after purchasing an additional 1,470 shares during the last quarter. 84.19% of the stock is owned by hedge funds and other institutional investors.

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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