Morgan Stanley (NYSE:MS) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Morgan Stanley has a consensus analyst rating of “Moderate Buy” from 24 brokerages, with an average 1-year price target of $209.50 and an even split between buy and hold ratings.
• The company reported strong quarterly results, topping earnings and revenue estimates, and analysts still expect double-digit earnings growth in the near term.
• Morgan Stanley boosted shareholder returns by raising its quarterly dividend to $1.15 per share and authorizing a new $20 billion share buyback, though insider sales and private-credit redemption concerns were also noted.

Morgan Stanley (NYSE:MS - Get Free Report) has been assigned a consensus rating of "Moderate Buy" from the twenty-four brokerages that are currently covering the stock, MarketBeat.com reports. Twelve investment analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the company. The average 1-year price target among analysts that have issued ratings on the stock in the last year is $209.50.

Several research analysts recently weighed in on MS shares. Barclays upped their price objective on shares of Morgan Stanley from $219.00 to $230.00 and gave the stock an "overweight" rating in a research report on Thursday, April 16th. Jefferies Financial Group cut shares of Morgan Stanley from a "strong-buy" rating to a "hold" rating in a research report on Monday, March 9th. Wells Fargo & Company upped their price objective on shares of Morgan Stanley from $200.00 to $225.00 and gave the stock an "equal weight" rating in a research report on Wednesday, June 24th. Erste Group Bank upgraded shares of Morgan Stanley from a "hold" rating to a "buy" rating in a research report on Monday, April 27th. Finally, Zacks Research cut shares of Morgan Stanley from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, May 27th.

Key Stories Impacting Morgan Stanley

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

• Positive Sentiment: Raised its quarterly dividend to $1.15 per share and reapproved a $20 billion share repurchase program, signaling confidence in capital strength and shareholder returns.
• Positive Sentiment: Continued to highlight strength in its core franchise, with recent earnings showing strong revenue and profit growth and analysts still expecting double-digit earnings growth into the next quarter.
• Neutral Sentiment: Several recent articles also quote Morgan Stanley strategists and analysts on broader market themes, including the tech selloff and AI trade, but these comments are not direct operating updates for MS.
• Negative Sentiment: Private-credit redemption pressure is weighing on sentiment, as investors worry that withdrawal limits in Morgan Stanley’s fund could be a sign of broader stress in the sector.

Insider Activity

In other news, insider Eric F. Grossman sold 11,118 shares of the company's stock in a transaction on Monday, April 20th. The shares were sold at an average price of $190.75, for a total value of $2,120,758.50. Following the completion of the sale, the insider owned 169,403 shares of the company's stock, valued at approximately $32,313,622.25. This represents a 6.16% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Andrew M. Saperstein sold 51,668 shares of the company's stock in a transaction on Thursday, April 16th. The shares were sold at an average price of $188.59, for a total transaction of $9,744,068.12. Following the completion of the sale, the insider directly owned 282,142 shares of the company's stock, valued at $53,209,159.78. This trade represents a 15.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 77,476 shares of company stock valued at $14,644,762. Corporate insiders own 0.17% of the company's stock.

Institutional Investors Weigh In On Morgan Stanley

A number of institutional investors have recently made changes to their positions in MS. Purpose Unlimited Inc. bought a new position in shares of Morgan Stanley in the fourth quarter worth approximately $25,000. Motiv8 Investments LLC bought a new position in shares of Morgan Stanley in the fourth quarter worth approximately $25,000. Olistico Wealth LLC bought a new position in shares of Morgan Stanley in the fourth quarter worth approximately $27,000. Lodestone Wealth Management LLC bought a new position in shares of Morgan Stanley in the fourth quarter worth approximately $28,000. Finally, WFA of San Diego LLC bought a new position in shares of Morgan Stanley in the second quarter worth approximately $28,000. Hedge funds and other institutional investors own 84.19% of the company's stock.

Morgan Stanley Stock Up 0.4%

MS stock opened at $212.85 on Monday. 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's 50 day moving average is $203.03 and its 200 day moving average is $184.55. The stock has a market cap of $335.72 billion, a price-to-earnings ratio of 19.28, a price-to-earnings-growth ratio of 1.63 and a beta of 1.23. Morgan Stanley has a 1-year low of $135.26 and a 1-year high of $230.47.

Morgan Stanley (NYSE:MS - Get Free Report) last posted its quarterly earnings data on Wednesday, April 15th. The financial services provider reported $3.43 earnings per share for the quarter, topping the consensus estimate of $3.02 by $0.41. The company had revenue of $20.58 billion for the quarter, compared to analysts' expectations of $19.23 billion. Morgan Stanley had a net margin of 14.65% and a return on equity of 17.70%. Morgan Stanley's revenue for the quarter was up 16.0% compared to the same quarter last year. During the same period in the prior year, the business earned $2.60 earnings per share. Sell-side analysts predict that Morgan Stanley will post 11.81 EPS for the current fiscal year.

Morgan Stanley announced that its Board of Directors has initiated a share buyback plan on Wednesday, June 24th that allows the company to repurchase $20.00 billion in shares. This repurchase authorization allows the financial services provider to reacquire up to 5.6% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's board believes its shares are undervalued.

Morgan Stanley Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Thursday, April 30th were paid a $1.00 dividend. The ex-dividend date of this dividend was Thursday, April 30th. This represents a $4.00 dividend on an annualized basis and a dividend yield of 1.9%. Morgan Stanley's dividend payout ratio is 36.23%.

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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