Morgan Stanley (NYSE:MS) Sets New 12-Month High - Here's Why

Key Points

• Morgan Stanley shares hit a new 52-week high, trading as high as $194.95 after closing at $191.88, reflecting strong recent momentum in the stock.
• The company has benefited from positive business and macro headlines, including a higher S&P 500 forecast, bullish stock calls, and commentary that supports its capital markets and research franchise.
• Recent earnings and shareholder returns were solid, with Q1 EPS of $3.43 beating estimates and revenue rising 16% year over year, while the firm also announced a $1.00 quarterly dividend payable May 15.

Shares of Morgan Stanley (NYSE:MS - Get Free Report) hit a new 52-week high during trading on Wednesday . The company traded as high as $194.95 and last traded at $193.9850, with a volume of 2999522 shares traded. The stock had previously closed at $191.88.

Key Headlines Impacting Morgan Stanley

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

• Positive Sentiment: Morgan Stanley lifted its S&P 500 forecast and reiterated a constructive outlook on stocks, which can boost sentiment toward the firm’s market strategy and research franchise.
• Positive Sentiment: Coverage highlighted Morgan Stanley’s role in active calls across sectors, including bullish views on Ford and other names, underscoring its influence on investor positioning and trading ideas.
• Positive Sentiment: Recent headlines also noted Morgan Stanley deepening its digital bond push and benefiting from strong interest in its market commentary, supporting the story of a well-positioned capital markets business.
• Neutral Sentiment: Separate articles on Canada, the UK, India, and inflation reflected Morgan Stanley’s macro strategy work rather than a direct change to the company’s fundamentals.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on MS. JPMorgan Chase & Co. raised their target price on Morgan Stanley from $173.00 to $179.00 and gave the stock a "neutral" rating in a report on Tuesday, March 10th. Citigroup raised their target price on Morgan Stanley from $170.00 to $194.00 and gave the stock a "neutral" rating in a report on Friday, May 8th. Rothschild & Co Redburn raised their target price on Morgan Stanley from $171.00 to $183.00 and gave the stock a "neutral" rating in a report on Friday, April 17th. UBS Group raised their target price on Morgan Stanley from $196.00 to $214.00 in a report on Wednesday, May 6th. Finally, HSBC raised their target price on Morgan Stanley from $153.00 to $177.00 and gave the stock a "hold" rating in a report on Friday, April 17th. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and eleven have given a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $206.26.

Morgan Stanley Price Performance

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 firm has a market cap of $305.97 billion, a P/E ratio of 17.57, a PEG ratio of 1.44 and a beta of 1.22. The company has a fifty day moving average price of $173.92 and a two-hundred day moving average price of $174.32.

Morgan Stanley (NYSE:MS - Get Free Report) last released its quarterly earnings data 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 return on equity of 17.70% and a net margin of 14.65%.The business had revenue of $20.58 billion for the quarter, compared to analysts' expectations of $19.23 billion. During the same quarter in the previous year, the business posted $2.60 EPS. Morgan Stanley's revenue for the quarter was up 16.0% on a year-over-year basis. Equities analysts anticipate that Morgan Stanley will post 11.85 earnings per share for the current year.

Morgan Stanley Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, May 15th. Stockholders of record on Thursday, April 30th will be issued a dividend of $1.00 per share. This represents a $4.00 annualized dividend and a dividend yield of 2.1%. The ex-dividend date is Thursday, April 30th. Morgan Stanley's payout ratio is 36.23%.

Insider Activity

In other Morgan Stanley news, insider Andrew M. Saperstein sold 51,668 shares of the 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 completion of the transaction, the insider owned 282,142 shares in the company, valued at approximately $53,209,159.78. This represents a 15.48% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Daniel A. Simkowitz sold 14,690 shares of Morgan Stanley stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $189.24, for a total value of $2,779,935.60. Following the completion of the sale, the insider directly owned 365,802 shares in the company, valued at $69,224,370.48. This represents a 3.86% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 77,476 shares of company stock worth $14,644,762 in the last 90 days. Corporate insiders own 0.17% of the company's stock.

Institutional Investors Weigh In On Morgan Stanley

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Brighton Jones LLC boosted its holdings in Morgan Stanley by 10.2% during the fourth quarter. Brighton Jones LLC now owns 12,782 shares of the financial services provider's stock worth $1,607,000 after purchasing an additional 1,185 shares during the last quarter. Main Street Financial Solutions LLC increased its stake in Morgan Stanley by 69.0% in the 2nd quarter. Main Street Financial Solutions LLC now owns 8,964 shares of the financial services provider's stock valued at $1,263,000 after buying an additional 3,661 shares during the last quarter. Diversify Advisory Services LLC lifted its position in Morgan Stanley by 90.9% during the 2nd quarter. Diversify Advisory Services LLC now owns 16,148 shares of the financial services provider's stock worth $2,378,000 after buying an additional 7,688 shares in the last quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main boosted its stake in shares of Morgan Stanley by 6.3% during the 2nd quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 263,575 shares of the financial services provider's stock worth $37,127,000 after buying an additional 15,623 shares during the last quarter. Finally, Jupiter Wealth Management LLC increased its position in shares of Morgan Stanley by 7.8% in the second quarter. Jupiter Wealth Management LLC now owns 52,825 shares of the financial services provider's stock valued at $7,805,000 after acquiring an additional 3,807 shares during the last quarter. Institutional investors and hedge funds own 84.19% of the company's stock.

About Morgan Stanley

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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