Zacks Research Boosts Earnings Estimates for Morgan Stanley

Key Points

• Zacks Research has increased its Q3 2025 earnings per share estimate for Morgan Stanley from $1.96 to $1.97, indicating a positive outlook for the company’s financial performance.
• Other analysts have also raised price targets for Morgan Stanley, with Royal Bank of Canada increasing its target from $145.00 to $171.00, reflecting growing confidence in the stock.
• Morgan Stanley declared an increase in its quarterly dividend from $0.93 to $1.00 per share, reflecting a robust dividend payout ratio of 45.30% and a yield of 2.6%.

Morgan Stanley (NYSE:MS - Free Report) - Zacks Research upped their Q3 2025 earnings per share (EPS) estimates for shares of Morgan Stanley in a report released on Monday, October 13th. Zacks Research analyst Team now anticipates that the financial services provider will post earnings per share of $1.97 for the quarter, up from their previous forecast of $1.96. The consensus estimate for Morgan Stanley's current full-year earnings is $8.56 per share. Zacks Research also issued estimates for Morgan Stanley's Q4 2025 earnings at $2.04 EPS, FY2025 earnings at $8.73 EPS, Q3 2026 earnings at $2.26 EPS, Q4 2026 earnings at $2.35 EPS, FY2026 earnings at $9.34 EPS, Q1 2027 earnings at $2.40 EPS, Q2 2027 earnings at $2.57 EPS, Q3 2027 earnings at $2.46 EPS and FY2027 earnings at $9.92 EPS.

Morgan Stanley (NYSE:MS - Get Free Report) last issued its earnings results on Wednesday, July 16th. The financial services provider reported $2.13 EPS for the quarter, topping the consensus estimate 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 quarter last year, the company earned $1.82 EPS. The firm's revenue was up 11.8% compared to the same quarter last year.

A number of other equities analysts have also recently commented on MS. Royal Bank Of Canada lifted their price target on Morgan Stanley from $145.00 to $171.00 and gave the stock a "sector perform" rating in a research note on Wednesday, October 1st. The Goldman Sachs Group upped their price target on shares of Morgan Stanley from $145.00 to $164.00 and gave the stock a "neutral" rating in a research note on Friday, October 3rd. Weiss Ratings reiterated a "buy (b-)" rating on shares of Morgan Stanley in a research report on Wednesday, October 8th. Keefe, Bruyette & Woods upgraded Morgan Stanley from a "market perform" rating to an "outperform" rating and upped their price target for the stock from $127.00 to $160.00 in a research report on Wednesday, July 9th. Finally, Wells Fargo & Company increased their price target on Morgan Stanley from $145.00 to $165.00 and gave the company an "equal weight" rating in a research note on Tuesday, September 16th. Two research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and nine have given a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $154.85.

Morgan Stanley Stock Performance

NYSE:MS opened at $155.10 on Tuesday. The business's 50-day moving average price is $151.89 and its two-hundred day moving average price is $136.07. Morgan Stanley has a twelve month low of $94.33 and a twelve month high of $163.98. The stock has a market cap of $247.60 billion, a P/E ratio of 17.57, a PEG ratio of 1.77 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.

Institutional Investors Weigh In On Morgan Stanley

Several hedge funds have recently made changes to their positions in the business. Meridian Wealth Management LLC raised its position in shares of Morgan Stanley by 34.3% during the 1st quarter. Meridian Wealth Management LLC now owns 23,869 shares of the financial services provider's stock worth $2,785,000 after purchasing an additional 6,092 shares during the last quarter. Headlands Technologies LLC acquired a new position in Morgan Stanley in the 1st quarter worth $57,000. AGF Management Ltd. raised its stake in shares of Morgan Stanley by 55.9% in the 1st quarter. AGF Management Ltd. now owns 327,978 shares of the financial services provider's stock valued at $38,265,000 after purchasing an additional 117,615 shares in the last quarter. Tlwm raised its stake in shares of Morgan Stanley by 1.8% in the 1st quarter. Tlwm now owns 13,863 shares of the financial services provider's stock valued at $1,617,000 after purchasing an additional 248 shares in the last quarter. Finally, Alley Investment Management Company LLC raised its stake in Morgan Stanley by 75.0% during the first quarter. Alley Investment Management Company LLC now owns 62,469 shares of the financial services provider's stock worth $7,288,000 after acquiring an additional 26,763 shares during the period. Institutional investors and hedge funds own 84.19% of the company's stock.

Insider Activity at Morgan Stanley

In other news, insider Eric F. Grossman sold 12,000 shares of the business's stock in a transaction that occurred on Thursday, July 17th. The stock was sold at an average price of $141.12, for a total transaction of $1,693,440.00. Following the transaction, the insider directly owned 186,420 shares in the company, valued at $26,307,590.40. The trade was a 6.05% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Andrew M. Saperstein sold 43,566 shares of the company's stock in a transaction on Thursday, July 17th. The stock was sold at an average price of $140.97, for a total value of $6,141,499.02. Following the transaction, the insider owned 294,250 shares in the company, valued at $41,480,422.50. This trade represents a 12.90% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 148,149 shares of company stock worth $20,841,628 in the last quarter. Corporate insiders own 0.19% of the company's stock.

Morgan Stanley declared that its board has initiated a stock repurchase plan on Tuesday, July 1st that authorizes the company to repurchase $20.00 billion in shares. This repurchase authorization authorizes the financial services provider to repurchase up to 8.9% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's board of directors believes its stock is undervalued.

Morgan Stanley Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 15th. Shareholders of record on Thursday, July 31st were paid a dividend of $1.00 per share. This is an increase from Morgan Stanley's previous quarterly dividend of $0.93. The ex-dividend date was Thursday, July 31st. This represents a $4.00 annualized dividend and a yield of 2.6%. Morgan Stanley's dividend payout ratio (DPR) is presently 45.30%.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.