Morgan Stanley (NYSE:MS) Releases Quarterly Earnings Results, Beats Expectations By $0.57 EPS

Morgan Stanley (NYSE:MS) posted its quarterly earnings data on Wednesday. The financial services provider reported $3.46 EPS for the quarter, topping the consensus estimate of $2.89 by $0.57, FiscalAI reports. Morgan Stanley had a net margin of 14.65% and a return on equity of 17.70%. The firm had revenue of $21.35 billion during the quarter, compared to analyst estimates of $19.67 billion.

Morgan Stanley Trading Up 3.2%

MS opened at $228.17 on Wednesday. Morgan Stanley has a 52 week low of $135.26 and a 52 week high of $232.11. The stock has a market cap of $359.89 billion, a PE ratio of 20.67, a PEG ratio of 1.67 and a beta of 1.23. The business has a 50 day moving average of $209.98 and a 200-day moving average of $187.94. The company has a quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 3.52.

Insider Activity at Morgan Stanley

In related news, insider Eric F. Grossman sold 11,118 shares of Morgan Stanley stock in a transaction dated Monday, April 20th. The stock was sold at an average price of $190.75, for a total value of $2,120,758.50. Following the completion of the transaction, the insider owned 169,403 shares in the company, valued at $32,313,622.25. The trade was a 6.16% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Andrew M. Saperstein sold 51,668 shares of Morgan Stanley stock in a transaction on Thursday, April 16th. The shares were sold at an average price of $188.59, for a total value of $9,744,068.12. Following the completion of the sale, the insider owned 282,142 shares in the company, valued at $53,209,159.78. This represents a 15.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 77,476 shares of company stock valued at $14,644,762. 0.17% of the stock is owned by company insiders.

Hedge Funds Weigh In On Morgan Stanley

Several institutional investors and hedge funds have recently modified their holdings of MS. Motiv8 Investments LLC acquired a new stake in shares of Morgan Stanley during the fourth quarter worth approximately $25,000. WFA of San Diego LLC acquired a new stake in shares of Morgan Stanley in the second quarter valued at about $28,000. Strive Asset Management LLC bought a new stake in Morgan Stanley in the 3rd quarter valued at $34,000. Swiss RE Ltd. acquired a new position in Morgan Stanley in the fourth quarter worth $41,000. Finally, Birchwood Financial Partners Inc. bought a new stake in shares of Morgan Stanley during the 4th quarter valued at $42,000. Hedge funds and other institutional investors own 84.19% of the company’s stock.

More Morgan Stanley News

Here are the key news stories impacting Morgan Stanley this week:

• Positive Sentiment: Expectations are rising that Morgan Stanley will post strong Q2 results, with analysts pointing to better trading activity, firmer investment-banking fees, and improved net interest income as potential upside drivers. Article Title
• Positive Sentiment: Broader bank earnings optimism is also supporting MS, after major lenders delivered strong Q2 updates and analysts said the sector could surprise to the upside across the board. Article Title
• Positive Sentiment: Cooling inflation has reduced pressure on interest rates, improving the backdrop for equities and financials ahead of the earnings release. Article Title
• Neutral Sentiment: Several articles are simply previews of Morgan Stanley’s upcoming earnings and dividend setup, reinforcing that the stock is in a wait-and-see phase until the report is out. Article Title
• Neutral Sentiment: Market commentary also noted Morgan Stanley’s own valuation looks stretched after a strong run, which could limit upside if earnings merely meet expectations rather than exceed them. Article Title

Wall Street Analyst Weigh In

A number of research firms recently issued reports on MS. Citigroup raised their price target on Morgan Stanley from $194.00 to $220.00 and gave the stock a “neutral” rating in a research note on Tuesday, June 23rd. Zacks Research downgraded shares of Morgan Stanley from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, May 27th. Royal Bank Of Canada reiterated a “sector perform” rating and set a $207.00 price target on shares of Morgan Stanley in a report on Thursday, April 16th. Citizens Jmp reissued a “market perform” rating on shares of Morgan Stanley in a report on Thursday, April 16th. Finally, CICC Research boosted their target price on Morgan Stanley from $175.00 to $200.00 and gave the stock an “outperform” rating in a research report on Tuesday, May 19th. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Morgan Stanley presently has an average rating of “Moderate Buy” and an average price target of $215.20.

Morgan Stanley announced that its board has authorized a share repurchase plan on Wednesday, June 24th that authorizes the company to buyback $20.00 billion in shares. This buyback authorization authorizes the financial services provider to reacquire up to 5.6% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s board believes its stock is undervalued.

Morgan Stanley Company Profile

Morgan Stanley (NYSE: MS) is a global financial services firm headquartered in New York City. Founded in 1935 by Henry S. Morgan and Harold Stanley, the company provides a broad range of investment banking, securities, wealth management and investment management services to corporations, governments, institutions and individual investors. Leadership has been guided by a senior executive team and board of directors; James P. Gorman has served as the company’s chief executive and chairman in recent years.

The firm’s primary business activities are organized around three principal businesses: Institutional Securities, Wealth Management and Investment Management.