UBS Group Forecasts Strong Price Appreciation for Morgan Stanley (NYSE:MS) Stock

Key Points

• UBS Group has increased its price target for Morgan Stanley from $156 to $165, indicating a potential upside of 5.41% based on the company's previous close.
• Multiple analysts have given Morgan Stanley a range of ratings, with a consensus target price of $154.85, reflecting an overall “Moderate Buy” sentiment.
• Morgan Stanley announced a $20 billion share buyback program, which signals management's belief that the stock is undervalued.

Morgan Stanley (NYSE:MS - Get Free Report) had its price objective increased by research analysts at UBS Group from $156.00 to $165.00 in a research report issued to clients and investors on Tuesday,Benzinga reports. The firm currently has a "neutral" rating on the financial services provider's stock. UBS Group's price objective would indicate a potential upside of 5.41% from the company's previous close.

Other equities research analysts also recently issued research reports about the stock. Weiss Ratings restated a "buy (b-)" rating on shares of Morgan Stanley in a research note on Saturday, September 27th. Citigroup boosted their target price on shares of Morgan Stanley from $130.00 to $155.00 and gave the stock a "neutral" rating in a report on Friday, September 26th. The Goldman Sachs Group raised their target price on Morgan Stanley from $145.00 to $164.00 and gave the company a "neutral" rating in a report on Friday. Royal Bank Of Canada lifted their price target on Morgan Stanley from $145.00 to $171.00 and gave the company a "sector perform" rating in a research report on Wednesday, October 1st. Finally, Keefe, Bruyette & Woods upgraded Morgan Stanley from a "market perform" rating to an "outperform" rating and lifted their price target for the company from $127.00 to $160.00 in a research report on Wednesday, July 9th. Two analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and nine have given a Hold rating to the company. According to MarketBeat.com, Morgan Stanley currently has an average rating of "Moderate Buy" and a consensus target price of $154.85.

Morgan Stanley Trading Down 1.0%

Shares of MS stock traded down $1.56 during mid-day trading on Tuesday, reaching $156.53. The company's stock had a trading volume of 1,632,422 shares, compared to its average volume of 6,395,660. The company's 50 day simple moving average is $150.62 and its 200-day simple moving average is $134.89. The firm has a market capitalization of $249.88 billion, a PE ratio of 17.73, a price-to-earnings-growth ratio of 1.96 and a beta of 1.32. The company has a quick ratio of 0.78, a current ratio of 0.78 and a debt-to-equity ratio of 3.30. Morgan Stanley has a 12-month low of $94.33 and a 12-month high of $163.98.

Morgan Stanley (NYSE:MS - Get Free Report) last posted its quarterly earnings results on Wednesday, July 16th. The financial services provider reported $2.13 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 during the quarter, compared to the consensus estimate of $16.15 billion. During the same period last year, the firm earned $1.82 earnings per share. The company's revenue for the quarter was up 11.8% compared to the same quarter last year. On average, research analysts predict that Morgan Stanley will post 8.56 EPS for the current fiscal year.

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

Insider Activity

In other Morgan Stanley news, insider Andrew M. Saperstein sold 43,566 shares of the stock in a transaction that occurred on Thursday, July 17th. The shares were sold at an average price of $140.97, for a total value of $6,141,499.02. Following the completion of the sale, the insider owned 294,250 shares of the company's stock, valued at $41,480,422.50. This trade represents a 12.90% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Daniel A. Simkowitz sold 29,000 shares of the business's stock in a transaction on Thursday, July 17th. The shares were sold at an average price of $141.13, for a total transaction of $4,092,770.00. Following the sale, the insider owned 399,105 shares of the company's stock, valued at approximately $56,325,688.65. The trade was a 6.77% decrease in their position. The disclosure for this sale can be found here. Insiders 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 Inflows and Outflows

Several large investors have recently bought and sold shares of the business. CBIZ Investment Advisory Services LLC grew its holdings in Morgan Stanley by 111.0% during the first quarter. CBIZ Investment Advisory Services LLC now owns 211 shares of the financial services provider's stock valued at $25,000 after purchasing an additional 111 shares during the last quarter. Princeton Global Asset Management LLC increased its position in Morgan Stanley by 645.8% during the second quarter. Princeton Global Asset Management LLC now owns 179 shares of the financial services provider's stock worth $25,000 after buying an additional 155 shares during the last quarter. MorganRosel Wealth Management LLC bought a new stake in shares of Morgan Stanley in the first quarter valued at approximately $27,000. WFA of San Diego LLC bought a new stake in shares of Morgan Stanley during the second quarter worth $28,000. Finally, Garde Capital Inc. acquired a new position in shares of Morgan Stanley in the 1st quarter worth 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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