Vining Sparks reaffirmed their buy rating on shares of Morgan Stanley (NYSE:MS) in a research note published on Tuesday. They currently have a $60.00 price target on the financial services provider’s stock.
“MS’ ROTCE should improve by 3 percentage points in 2018E and by another percentage point in 2019E, which should push its excess return-on-equity to 5 to 6 percentage points and its expected price-to-tangible book value toward 165% eventually. Moreover, MS’ 3Q’18 operating earnings per share has grown by 31% over 3Q’17; however, its stock price is down 6% since October of last year. Thus, we believe MS should be able to generate a significant outperformance once investors stop minimizing recent improvement in returns due to recession worries.”,” the firm’s analyst commented.
Several other equities research analysts also recently issued reports on the stock. JPMorgan Chase & Co. reiterated a buy rating and set a $62.00 price objective on shares of Morgan Stanley in a research note on Monday, September 10th. Zacks Investment Research downgraded shares of Morgan Stanley from a hold rating to a sell rating in a research note on Friday, September 21st. Wolfe Research began coverage on shares of Morgan Stanley in a research note on Tuesday, September 25th. They issued an outperform rating for the company. HSBC downgraded shares of Morgan Stanley from a buy rating to a hold rating and set a $54.00 target price for the company. in a research note on Tuesday, October 2nd. Finally, UBS Group upgraded shares of Morgan Stanley from a market perform rating to an outperform rating in a research note on Tuesday. Two analysts have rated the stock with a sell rating, eight have given a hold rating and ten have given a buy rating to the stock. The company currently has an average rating of Hold and a consensus price target of $58.53.
Morgan Stanley (NYSE:MS) last released its quarterly earnings data on Tuesday, October 16th. The financial services provider reported $1.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.01 by $0.16. Morgan Stanley had a net margin of 15.93% and a return on equity of 12.53%. The company had revenue of $9.87 billion during the quarter, compared to the consensus estimate of $9.55 billion. During the same period in the previous year, the firm earned $0.93 earnings per share. Morgan Stanley’s revenue for the quarter was up 7.3% on a year-over-year basis. Research analysts anticipate that Morgan Stanley will post 4.8 earnings per share for the current year.
The business also recently declared a quarterly dividend, which will be paid on Thursday, November 15th. Investors of record on Wednesday, October 31st will be issued a $0.30 dividend. The ex-dividend date of this dividend is Tuesday, October 30th. This represents a $1.20 annualized dividend and a yield of 2.58%. Morgan Stanley’s dividend payout ratio is presently 33.33%.
Morgan Stanley announced that its board has initiated a stock repurchase plan on Thursday, June 28th that authorizes the company to repurchase $4.70 billion in outstanding shares. This repurchase authorization authorizes the financial services provider to purchase up to 5.6% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board of directors believes its stock is undervalued.
In related news, major shareholder Stanley Morgan sold 327 shares of the company’s stock in a transaction on Wednesday, September 19th. The shares were sold at an average price of $23,000.00, for a total value of $7,521,000.00. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Corporate insiders own 0.19% of the company’s stock.
A number of institutional investors and hedge funds have recently bought and sold shares of MS. Dynamic Technology Lab Private Ltd acquired a new stake in shares of Morgan Stanley during the second quarter worth $2,021,000. Cambridge Investment Research Advisors Inc. raised its holdings in shares of Morgan Stanley by 23.5% during the second quarter. Cambridge Investment Research Advisors Inc. now owns 56,813 shares of the financial services provider’s stock worth $2,693,000 after purchasing an additional 10,807 shares during the period. LGT Capital Partners LTD. raised its holdings in shares of Morgan Stanley by 15.7% during the second quarter. LGT Capital Partners LTD. now owns 639,220 shares of the financial services provider’s stock worth $30,299,000 after purchasing an additional 86,600 shares during the period. Private Advisor Group LLC raised its holdings in shares of Morgan Stanley by 57.9% during the second quarter. Private Advisor Group LLC now owns 27,106 shares of the financial services provider’s stock worth $1,292,000 after purchasing an additional 9,939 shares during the period. Finally, Boston Partners raised its holdings in shares of Morgan Stanley by 25.7% during the second quarter. Boston Partners now owns 2,666,017 shares of the financial services provider’s stock worth $126,369,000 after purchasing an additional 545,059 shares during the period. 84.53% of the stock is currently owned by hedge funds and other institutional investors.
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. The company operates through three segments: Institutional Securities, Wealth Management, and Investment Management.
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