Stock Traders Purchase High Volume of Call Options on Morgan Stanley (NYSE:MS)

Morgan Stanley (NYSE:MS) was the target of some unusual options trading activity on Thursday. Investors acquired 26,930 call options on the company. This represents an increase of 63% compared to the average volume of 16,516 call options.

Morgan Stanley Stock Up 1.3%

Shares of NYSE MS opened at $189.96 on Friday. The business has a 50-day moving average price of $207.53 and a 200 day moving average price of $202.76. The stock has a market cap of $299.63 billion, a PE ratio of 15.36, a price-to-earnings-growth ratio of 1.25 and a beta of 1.22. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 3.65. Morgan Stanley has a 52-week low of $151.84 and a 52-week high of $232.25.

Morgan Stanley (NYSE:MS) last issued its quarterly earnings data on Wednesday, July 15th. The financial services provider reported $3.46 earnings per share for the quarter, beating analysts’ consensus estimates of $2.89 by $0.57. The company had revenue of $21.35 billion during the quarter, compared to analysts’ expectations of $19.67 billion. Morgan Stanley had a return on equity of 19.31% and a net margin of 15.65%. The firm’s revenue for the quarter was up 27.1% on a year-over-year basis. During the same quarter in the previous year, the business earned $2.13 earnings per share. Equities research analysts forecast that Morgan Stanley will post 12.66 earnings per share for the current year.

Morgan Stanley declared that its board has approved a share repurchase plan on Wednesday, June 24th that allows the company to buy back $20.00 billion in shares. This repurchase authorization allows the financial services provider to buy up to 5.6% of its shares through open market purchases. Stock repurchase plans are generally an indication that the company’s board of directors believes its shares are undervalued.

Morgan Stanley Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 14th. Shareholders of record on Friday, July 31st were paid a $1.15 dividend. This is a boost from Morgan Stanley’s previous quarterly dividend of $1.00. This represents a $4.60 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date was Friday, July 31st. Morgan Stanley’s dividend payout ratio (DPR) is presently 37.19%.

Hedge Funds Weigh In On Morgan Stanley

Institutional investors have recently added to or reduced their stakes in the stock. Marquette Asset Management LLC increased its holdings in Morgan Stanley by 143.4% during the 2nd quarter. Marquette Asset Management LLC now owns 129 shares of the financial services provider’s stock valued at $27,000 after purchasing an additional 76 shares in the last quarter. Atlatl Advisers LLC bought a new stake in shares of Morgan Stanley during the second quarter worth $28,000. Hughes Financial Services LLC increased its stake in shares of Morgan Stanley by 55.7% in the second quarter. Hughes Financial Services LLC now owns 137 shares of the financial services provider’s stock valued at $29,000 after buying an additional 49 shares in the last quarter. Purpose Unlimited Inc. acquired a new position in Morgan Stanley during the 4th quarter worth about $25,000. Finally, Security National Bank of SO Dak bought a new stake in Morgan Stanley during the 2nd quarter worth about $31,000. Institutional investors and hedge funds own 84.19% of the company’s stock.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on MS shares. BMO Capital Markets dropped their target price on Morgan Stanley from $250.00 to $215.00 and set an “outperform” rating on the stock in a report on Tuesday. Jefferies Financial Group upgraded Morgan Stanley from a “hold” rating to a “strong-buy” rating in a report on Tuesday, July 7th. Evercore restated an “outperform” rating on shares of Morgan Stanley in a research note on Monday, July 6th. Freedom Capital upgraded shares of Morgan Stanley from a “hold” rating to a “strong-buy” rating in a research note on Friday, July 17th. Finally, Weiss Ratings upgraded shares of Morgan Stanley from a “buy (b-)” rating to a “buy (b)” rating in a research report on Wednesday, August 5th. Two research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $219.43.

Trending Headlines about Morgan Stanley

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

• Positive Sentiment: Options traders purchased approximately 26,930 MS call contracts, well above average call volume, suggesting increased short-term bullish positioning. Morgan Stanley unusual options activity
• Positive Sentiment: Jim Cramer recently backed Morgan Stanley after its pullback, highlighting the company’s buyback authorization and long-term prospects. That commentary may be supporting investor confidence, although it is not a fundamental earnings catalyst. Jim Cramer Backs Morgan Stanley After Its Pullback
• Positive Sentiment: Morgan Stanley’s proposal to convert eight Eaton Vance municipal-bond mutual funds, representing nearly $10 billion in assets, into ETFs could support its asset-management strategy and improve product efficiency if shareholders approve the transactions. Morgan Stanley Municipal Fund ETF Conversions
• Neutral Sentiment: TD Cowen initiated coverage with a Hold rating and a $210 price target, implying potential upside from the reported trading level but signaling that the firm sees balanced risk and reward. TD Cowen Initiates Morgan Stanley Coverage
• Negative Sentiment: Pre-earnings analysis points to a challenging Q3 outlook: higher costs and muted investment-banking deal activity could pressure results, even if trading revenue remains relatively strong. Morgan Stanley Stock Ahead of Q3 Earnings
• Negative Sentiment: Erste Group downgraded Morgan Stanley from Buy to Hold, adding to a more cautious analyst tone ahead of earnings. Erste Group Morgan Stanley Downgrade

About Morgan Stanley

Morgan Stanley is a global financial services firm serving corporations, governments, financial institutions, individuals and other investors. The company provides investment banking and advisory services, including mergers and acquisitions advice, equity and debt underwriting, securities sales and trading, and corporate lending.

Through its Wealth Management business, Morgan Stanley offers financial planning, brokerage, investment advisory and banking services to individual investors, businesses and institutions.