Morgan Stanley (NYSE:MS) Posts Earnings Results
by Mitch Edgeman · The Markets DailyMorgan Stanley (NYSE:MS – Get Free Report) released its earnings results on Wednesday. The financial services provider reported $3.43 earnings per share for the quarter, beating the consensus estimate of $2.95 by $0.48, RTT News reports. Morgan Stanley had a return on equity of 16.78% and a net margin of 14.09%.During the same period in the prior year, the firm earned $2.60 EPS. The business’s revenue for the quarter was up 16.0% on a year-over-year basis.
Morgan Stanley Stock Up 1.2%
Shares of NYSE MS opened at $183.29 on Wednesday. The company has a market capitalization of $289.85 billion, a P/E ratio of 17.95, a P/E/G ratio of 1.44 and a beta of 1.19. The company has a debt-to-equity ratio of 3.39, a current ratio of 0.81 and a quick ratio of 0.81. The company has a 50 day simple moving average of $168.20 and a 200-day simple moving average of $170.22. Morgan Stanley has a 1 year low of $104.78 and a 1 year high of $192.68.
Morgan Stanley Announces Dividend
The company also recently declared a quarterly dividend, which was paid on Friday, February 13th. Stockholders of record on Friday, January 30th were paid a $1.00 dividend. The ex-dividend date of this dividend was Friday, January 30th. This represents a $4.00 annualized dividend and a dividend yield of 2.2%. Morgan Stanley’s dividend payout ratio is 39.18%.
Morgan Stanley News Summary
Here are the key news stories impacting Morgan Stanley this week:
- Positive Sentiment: Q1 beats and fundamentals — Morgan Stanley reported EPS of $3.43 and revenue of about $20.6B, topping estimates and showing 16% revenue growth year-over-year; management pointed to stronger trading and dealmaking as the main drivers. Reuters: Morgan Stanley’s profit rises on dealmaking, trading boost
- Positive Sentiment: Higher profits, lower credit reserve drag — net profit rose ~30% and provisions for credit losses fell ~27%, supporting margin expansion and cash generation. RTTNews: Morgan Stanley Q1 Net Profit Rises 30%
- Positive Sentiment: Dividend & capital signal — the firm declared a $1.00 quarterly dividend, signaling confidence in capital and cash flow after the quarter. Seeking Alpha: Morgan Stanley declares $1.00 dividend
- Neutral Sentiment: Business-mix detail — Institutional Securities posted record revenue (reported ~ $10.7B in some summaries), while Wealth Management also grew double digits; investors will watch whether trading/dealmaking strength is durable. Seeking Alpha: Earnings Snapshot
- Neutral Sentiment: Analyst focus & conference call — the release includes slides and an investor call; analysts will update models and guidance based on Q1 detail and the call narrative (expect revisions to estimates and price targets). Company press pack / slide deck
- Negative Sentiment: Macro/geopolitical risk could mute gains — broader market sensitivity to US‑Iran developments and dollar moves may cap near‑term upside even after a strong quarter. Yahoo / Bloomberg: Hedge funds pivot bearish dollar
Insiders Place Their Bets
In other news, insider Daniel A. Simkowitz sold 32,968 shares of the stock in a transaction dated Friday, January 30th. The stock was sold at an average price of $182.61, for a total value of $6,020,286.48. Following the transaction, the insider owned 357,342 shares in the company, valued at approximately $65,254,222.62. This represents a 8.45% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Eric F. Grossman sold 21,555 shares of the company’s stock in a transaction on Tuesday, January 20th. The shares were sold at an average price of $184.00, for a total transaction of $3,966,120.00. Following the completion of the transaction, the insider owned 171,005 shares of the company’s stock, valued at approximately $31,464,920. The trade was a 11.19% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 129,191 shares of company stock valued at $23,736,506. Insiders own 0.17% of the company’s stock.
Institutional Investors Weigh In On Morgan Stanley
A number of hedge funds and other institutional investors have recently bought and sold shares of MS. Motiv8 Investments LLC purchased a new position in shares of Morgan Stanley in the 4th quarter valued at about $25,000. WFA of San Diego LLC purchased a new stake in Morgan Stanley during the second quarter worth about $28,000. Strive Asset Management LLC purchased a new stake in Morgan Stanley during the third quarter worth about $34,000. Swiss RE Ltd. acquired a new position in Morgan Stanley during the fourth quarter worth about $41,000. Finally, Mcguire Capital Advisors Inc. acquired a new position in Morgan Stanley during the fourth quarter worth about $42,000. Institutional investors and hedge funds own 84.19% of the company’s stock.
Analyst Ratings Changes
A number of equities research analysts have recently issued reports on MS shares. UBS Group raised shares of Morgan Stanley from a “neutral” rating to a “buy” rating and upped their target price for the stock from $195.00 to $196.00 in a report on Tuesday, April 7th. Daiwa Securities Group decreased their price target on shares of Morgan Stanley from $187.00 to $175.00 and set a “neutral” rating on the stock in a research note on Tuesday, April 7th. Wells Fargo & Company upped their price objective on shares of Morgan Stanley from $177.00 to $189.00 and gave the company an “equal weight” rating in a research note on Monday, January 5th. Erste Group Bank reiterated a “hold” rating on shares of Morgan Stanley in a report on Thursday, March 5th. Finally, Weiss Ratings reissued a “buy (b-)” rating on shares of Morgan Stanley in a research note on Thursday, January 22nd. Eight analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $189.94.
Check Out Our Latest Stock Report on Morgan Stanley
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.