Morgan Stanley (NYSE:MS) Reaches New 52-Week High - Here's Why

Key Points

• Morgan Stanley's stock reached a new 52-week high of $146.64, with a trading volume of 275,117 shares, following strong earnings results.
• Analysts have raised their target prices for Morgan Stanley, with Wells Fargo upping theirs to $145 and Keefe, Bruyette & Woods to $160, reflecting positive sentiment among investment firms.
• The company announced a quarterly dividend of $1.00 per share and a stock buyback program worth $20 billion, signaling confidence in its valuation and financial health.

Shares of Morgan Stanley (NYSE:MS - Get Free Report) reached a new 52-week high during trading on Tuesday . The stock traded as high as $146.35 and last traded at $146.64, with a volume of 275117 shares. The stock had previously closed at $143.88.

Wall Street Analyst Weigh In

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

Morgan Stanley Price Performance

The stock's 50 day simple moving average is $138.55 and its 200-day simple moving average is $128.44. The company has a debt-to-equity ratio of 3.30, a current ratio of 0.78 and a quick ratio of 0.78. The company has a market capitalization of $235.17 billion, a PE ratio of 16.69, a price-to-earnings-growth ratio of 1.79 and a beta of 1.32.

Morgan Stanley (NYSE:MS - Get Free Report) last released 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 firm 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 firm posted $1.82 EPS. Morgan Stanley's revenue for the quarter was up 11.8% on a year-over-year basis. As a group, equities analysts forecast that Morgan Stanley will post 8.56 earnings per share for the current fiscal year.

Morgan Stanley Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, August 15th. Investors 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 yield of 2.7%. The ex-dividend date of this dividend is Thursday, July 31st. This is a positive change from Morgan Stanley's previous quarterly dividend of $0.93. Morgan Stanley's payout ratio is presently 45.30%.

Morgan Stanley declared that its board has approved a stock buyback program on Tuesday, July 1st that authorizes the company to buyback $20.00 billion in shares. This buyback authorization authorizes the financial services provider to repurchase up to 8.9% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's board of directors believes its stock is undervalued.

Insider Activity

In related news, insider Andrew M. Saperstein sold 43,566 shares of the business's stock in a transaction on Thursday, July 17th. The stock was sold at an average price of $140.97, for a total transaction of $6,141,499.02. Following the completion of the transaction, the insider directly owned 294,250 shares of the company's stock, valued at $41,480,422.50. The trade was a 12.90% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Michael A. Pizzi sold 18,000 shares of the company's stock in a transaction dated 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 transaction, the insider directly owned 136,407 shares of the company's stock, valued at approximately $19,181,552.34. This represents a 11.66% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 148,149 shares of company stock worth $20,841,628 over the last three months. Company insiders own 0.19% of the company's stock.

Institutional Trading of Morgan Stanley

Large investors have recently made changes to their positions in the company. Minot DeBlois Advisors LLC acquired a new stake in shares of Morgan Stanley in the 4th quarter valued at approximately $25,000. CBIZ Investment Advisory Services LLC lifted its holdings 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 valued at $25,000 after buying an additional 111 shares during the period. Princeton Global Asset Management LLC lifted its holdings 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 valued at $25,000 after buying an additional 155 shares during the period. MorganRosel Wealth Management LLC acquired a new stake in shares of Morgan Stanley in the 1st quarter valued at approximately $27,000. Finally, Garde Capital Inc. acquired a new stake in shares of Morgan Stanley in the 1st quarter valued at approximately $30,000. 84.19% of the stock is owned by institutional investors and hedge funds.

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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