Morgan Stanley (NYSE:MS) Upgraded at BMO Capital Markets

Key Points

• Morgan Stanley has been upgraded to a "strong-buy" rating by BMO Capital Markets, reflecting increased analyst confidence in the stock.
• Wells Fargo raised its target price for Morgan Stanley from $145.00 to $165.00, while other firms have also expressed positive outlooks on the stock.
• The company recently announced a $20 billion share buyback plan, indicating that its leadership believes the stock is undervalued.

Morgan Stanley (NYSE:MS - Get Free Report) was upgraded by analysts at BMO Capital Markets to a "strong-buy" rating in a note issued to investors on Thursday,Zacks.com reports.

MS has been the subject of a number of other research reports. Wells Fargo & Company lifted their target price on Morgan Stanley from $145.00 to $165.00 and gave the stock an "equal weight" rating in a report on Tuesday, September 16th. Weiss Ratings reiterated a "buy (b-)" rating on shares of Morgan Stanley in a report on Saturday, September 27th. 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 report on Wednesday, July 9th. Citigroup lifted their target price on Morgan Stanley from $130.00 to $155.00 and gave the stock a "neutral" rating in a report on Friday, September 26th. Finally, Evercore ISI lifted their target price on Morgan Stanley from $150.00 to $165.00 and gave the stock an "outperform" rating in a report on Tuesday. Two investment analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and nine have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $149.15.

Morgan Stanley Stock Performance

NYSE:MS opened at $157.40 on Thursday. The company has a debt-to-equity ratio of 3.30, a current ratio of 0.78 and a quick ratio of 0.78. Morgan Stanley has a 1 year low of $94.33 and a 1 year high of $163.98. The stock's 50 day simple moving average is $150.30 and its two-hundred day simple moving average is $134.43. The company has a market cap of $251.27 billion, a price-to-earnings ratio of 17.83, a PEG ratio of 1.93 and a beta of 1.32.

Morgan Stanley (NYSE:MS - Get Free Report) last released its quarterly earnings data on Wednesday, July 16th. The financial services provider reported $2.13 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 for the quarter, compared to the consensus estimate of $16.15 billion. During the same quarter in the previous year, the company posted $1.82 EPS. The company's revenue was up 11.8% compared to the same quarter last year. As a group, equities analysts anticipate that Morgan Stanley will post 8.56 earnings per share for the current fiscal year.

Morgan Stanley declared that its board has initiated a share buyback plan on Tuesday, July 1st that allows the company to buyback $20.00 billion in shares. This buyback authorization allows the financial services provider to buy up to 8.9% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's leadership believes its shares are undervalued.

Insider Activity at Morgan Stanley

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 owned 294,250 shares in the company, valued at $41,480,422.50. The trade was a 12.90% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Sharon Yeshaya sold 25,583 shares of the business's stock in a transaction on Thursday, July 17th. The shares were sold at an average price of $139.81, for a total value of $3,576,759.23. Following the transaction, the chief financial officer owned 128,662 shares of the company's stock, valued at approximately $17,988,234.22. The trade was a 16.59% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 148,149 shares of company stock worth $20,841,628 over the last quarter. 0.19% of the stock is owned by insiders.

Institutional Investors Weigh In On Morgan Stanley

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Watts Gwilliam & Co. LLC increased its stake in Morgan Stanley by 2.3% during the 2nd quarter. Watts Gwilliam & Co. LLC now owns 3,090 shares of the financial services provider's stock valued at $435,000 after purchasing an additional 68 shares in the last quarter. Meadow Creek Wealth Advisors LLC increased its stake in Morgan Stanley by 2.5% during the 2nd quarter. Meadow Creek Wealth Advisors LLC now owns 2,799 shares of the financial services provider's stock valued at $394,000 after purchasing an additional 69 shares in the last quarter. Gallagher Capital Advisors LLC increased its stake in Morgan Stanley by 0.7% during the 2nd quarter. Gallagher Capital Advisors LLC now owns 9,969 shares of the financial services provider's stock valued at $1,420,000 after purchasing an additional 70 shares in the last quarter. Great Diamond Partners LLC increased its stake in Morgan Stanley by 0.5% during the 2nd quarter. Great Diamond Partners LLC now owns 13,361 shares of the financial services provider's stock valued at $1,882,000 after purchasing an additional 72 shares in the last quarter. Finally, McLean Asset Management Corp increased its stake in Morgan Stanley by 2.5% during the 2nd quarter. McLean Asset Management Corp now owns 3,007 shares of the financial services provider's stock valued at $430,000 after purchasing an additional 73 shares in the last quarter. 84.19% of the stock is owned by institutional investors.

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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