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

Morgan Stanley (NYSE:MS) shares 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.

The financial services provider reported $2.02 EPS for the quarter, topping the consensus estimate of $1.69 by $0.33. Morgan Stanley had a return on equity of 10.36% and a net margin of 9.49%. The business had revenue of $15.14 billion during the quarter, compared to analysts’ expectations of $14.42 billion. During the same period in the previous year, the business earned $1.70 earnings per share. The firm’s revenue was up 4.3% on a year-over-year basis.

Morgan Stanley Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 15th. Stockholders of record on Tuesday, April 30th will be given a dividend of $0.85 per share. This represents a $3.40 annualized dividend and a dividend yield of 3.77%. The ex-dividend date of this dividend is Monday, April 29th. Morgan Stanley’s dividend payout ratio (DPR) is currently 65.76%.

Analysts Set New Price Targets

Several brokerages recently issued reports on MS. UBS Group upped their target price on shares of Morgan Stanley from $80.00 to $95.00 and gave the stock a “neutral” rating in a research report on Tuesday, January 9th. JPMorgan Chase & Co. reiterated a “neutral” rating and set a $87.00 price objective (down from $94.00) on shares of Morgan Stanley in a research report on Wednesday, January 17th. Royal Bank of Canada restated a “sector perform” rating and issued a $91.00 target price on shares of Morgan Stanley in a research report on Wednesday, March 27th. Keefe, Bruyette & Woods upped their target price on Morgan Stanley from $94.00 to $98.00 and gave the stock a “market perform” rating in a research note on Wednesday. Finally, Bank of America lifted their price target on shares of Morgan Stanley from $95.00 to $100.00 and gave the stock a “buy” rating in a research note on Thursday, January 4th. Thirteen analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $96.13.

Insider Buying and Selling at Morgan Stanley

In related news, insider Andrew M. Saperstein sold 10,000 shares of the firm’s stock in a transaction dated Friday, January 19th. The stock was sold at an average price of $84.13, for a total value of $841,300.00. Following the sale, the insider now directly owns 323,490 shares of the company’s stock, valued at $27,215,213.70. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In other Morgan Stanley news, CFO Raja Akram sold 4,500 shares of the business’s stock in a transaction on Tuesday, January 30th. The shares were sold at an average price of $87.41, for a total transaction of $393,345.00. Following the transaction, the chief financial officer now directly owns 93,134 shares of the company’s stock, valued at approximately $8,140,842.94. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, insider Andrew M. Saperstein sold 10,000 shares of the company’s stock in a transaction on Friday, January 19th. The stock was sold at an average price of $84.13, for a total transaction of $841,300.00. Following the completion of the transaction, the insider now owns 323,490 shares of the company’s stock, valued at $27,215,213.70. The disclosure for this sale can be found here. Insiders sold 201,155 shares of company stock valued at $17,564,394 in the last quarter. Company insiders own 0.24% of the company’s stock.

Hedge Funds Weigh In On Morgan Stanley

Several hedge funds and other institutional investors have recently modified their holdings of MS. West Paces Advisors Inc. boosted its holdings in shares of Morgan Stanley by 10.1% during the 1st quarter. West Paces Advisors Inc. now owns 1,283 shares of the financial services provider’s stock valued at $121,000 after buying an additional 118 shares in the last quarter. Continuum Advisory LLC boosted its stake in Morgan Stanley by 2.7% during the fourth quarter. Continuum Advisory LLC now owns 4,531 shares of the financial services provider’s stock worth $423,000 after acquiring an additional 120 shares in the last quarter. Indiana Trust & Investment Management CO boosted its stake in Morgan Stanley by 9.9% during the first quarter. Indiana Trust & Investment Management CO now owns 1,341 shares of the financial services provider’s stock worth $126,000 after acquiring an additional 121 shares in the last quarter. Exencial Wealth Advisors LLC increased its stake in shares of Morgan Stanley by 3.1% during the fourth quarter. Exencial Wealth Advisors LLC now owns 4,024 shares of the financial services provider’s stock valued at $375,000 after purchasing an additional 122 shares in the last quarter. Finally, NBW Capital LLC lifted its holdings in shares of Morgan Stanley by 4.2% during the second quarter. NBW Capital LLC now owns 3,025 shares of the financial services provider’s stock valued at $258,000 after purchasing an additional 123 shares during the last quarter. Hedge funds and other institutional investors own 84.19% of the company’s stock.

Morgan Stanley Stock Performance

The company has a debt-to-equity ratio of 2.89, a quick ratio of 0.75 and a current ratio of 0.75. The stock has a market capitalization of $146.53 billion, a P/E ratio of 17.42, a PEG ratio of 1.76 and a beta of 1.43. The business has a 50-day moving average price of $88.73 and a 200 day moving average price of $84.81.

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.