Morgan Stanley (NYSE:MS) Shares Gap Up on Earnings Beat

Morgan Stanley (NYSE:MS - Get Free Report) gapped up before the market opened on Tuesday following a stronger than expected earnings report. The stock had previously closed at $86.99, but opened at $90.71. Morgan Stanley shares last traded at $89.85, with a volume of 5,304,411 shares traded.

The financial services provider reported $2.02 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.72 by $0.30. The company had revenue of $15.14 billion for the quarter, compared to analyst estimates of $14.42 billion. Morgan Stanley had a return on equity of 10.36% and a net margin of 9.49%. Morgan Stanley's revenue for the quarter was up 4.3% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.70 earnings per share.

Analyst Ratings Changes

A number of research analysts have recently weighed in on the company. BMO Capital Markets lifted their price target on Morgan Stanley from $106.00 to $107.00 and gave the company an "outperform" rating in a report on Wednesday, January 17th. Cfra lifted their price target on Morgan Stanley from $97.00 to $108.00 and gave the company a "buy" rating in a report on Tuesday. HSBC lifted their price target on Morgan Stanley from $96.00 to $100.00 and gave the company a "hold" rating in a report on Thursday, March 28th. JPMorgan Chase & Co. restated a "neutral" rating and issued a $87.00 target price (down previously from $94.00) on shares of Morgan Stanley in a research note on Wednesday, January 17th. Finally, Royal Bank of Canada restated a "sector perform" rating and issued a $91.00 target price on shares of Morgan Stanley in a research note on Wednesday, March 27th. Thirteen investment analysts have rated the stock with a hold rating and seven have issued a buy rating to the company. Based on data from MarketBeat, Morgan Stanley presently has an average rating of "Hold" and a consensus price target of $95.66.

Insider Transactions at Morgan Stanley

In other news, CFO Raja Akram sold 7,000 shares of the stock in a transaction that occurred on Thursday, January 18th. The stock was sold at an average price of $83.56, for a total value of $584,920.00. Following the completion of the transaction, the chief financial officer now directly owns 97,634 shares of the company's stock, valued at approximately $8,158,297.04. The sale was disclosed in a legal filing with the SEC, which is available at this link. In related news, CFO Raja Akram sold 7,000 shares of the stock in a transaction that occurred on Thursday, January 18th. The stock was sold at an average price of $83.56, for a total transaction of $584,920.00. Following the sale, the chief financial officer now directly owns 97,634 shares in the company, valued at approximately $8,158,297.04. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Chairman James P. Gorman sold 50,000 shares of the stock in a transaction that occurred on Thursday, January 25th. The stock was sold at an average price of $87.93, for a total value of $4,396,500.00. Following the sale, the chairman now owns 400,000 shares in the company, valued at $35,172,000. The disclosure for this sale can be found here. In the last ninety days, insiders sold 208,155 shares of company stock valued at $18,149,314. Corporate insiders own 0.24% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in MS. Fairfield Bush & CO. acquired a new position in shares of Morgan Stanley in the 1st quarter valued at $108,000. Baird Financial Group Inc. raised its stake in Morgan Stanley by 7.8% during the 1st quarter. Baird Financial Group Inc. now owns 306,637 shares of the financial services provider's stock worth $26,801,000 after buying an additional 22,095 shares during the period. Zions Bancorporation N.A. raised its stake in Morgan Stanley by 61.9% during the 1st quarter. Zions Bancorporation N.A. now owns 6,957 shares of the financial services provider's stock worth $608,000 after buying an additional 2,660 shares during the period. Brown Brothers Harriman & Co. raised its stake in Morgan Stanley by 64.5% during the 1st quarter. Brown Brothers Harriman & Co. now owns 17,070 shares of the financial services provider's stock worth $1,492,000 after buying an additional 6,696 shares during the period. Finally, Covestor Ltd raised its stake in Morgan Stanley by 66.9% during the 1st quarter. Covestor Ltd now owns 626 shares of the financial services provider's stock worth $55,000 after buying an additional 251 shares during the period. Institutional investors and hedge funds own 84.19% of the company's stock.

Morgan Stanley Price Performance

The firm has a market cap of $144.97 billion, a price-to-earnings ratio of 17.24, a P/E/G ratio of 1.74 and a beta of 1.43. The company has a current ratio of 0.75, a quick ratio of 0.75 and a debt-to-equity ratio of 2.89. The company has a 50 day moving average of $88.65 and a 200 day moving average of $84.78.

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.