Morgan Stanley surges after CEO boosts performance targets

Daniel Fowler
January 17, 2020

The financial services provider reported $1.20 EPS for the quarter, beating the Thomson Reuters' consensus estimate of $0.98 by $0.22.

On the flip-side, equity sales and trading revenues - one of Morgan Stanley's strongest businesses - dipped 0.5% to $1.92bn. Revenue from bond trading jumped to $5.05 billion with a 32% hike while fixed-income trading posted $1.27 billion in revenue. Even though it's the smallest business at the bank, it produced $1.4 billion in revenue, almost double compared to a year earlier, Morgan Stanley said in a press release.

For the full year, its efficiency ratio was 73%, its return-on-equity was 11.7% and its wealth business generated a pre-tax margin of 27.2%.

Morgan Stanley (NYSE:MS) was downgraded by research analysts at Piper Sandler from an "overweight" rating to a "neutral" rating in a report released on Friday, Automated Import reports. The company has a market cap of $85.56 billion, a PE ratio of 12.24, a P/E/G ratio of 1.12 and a beta of 1.39. The business's fifty day moving average price is $406.72 and its 200 day moving average price is $295.57.

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As of 1614 GMT, shares of Morgan Stanley were ahead by 7.01% to $56.65. The shares were sold at an average price of $49.13, for a total transaction of $2,510,788.65. Following the transaction, the chief accounting officer now directly owns 1,020 shares in the company, valued at approximately $357,816. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Jerome M. Guillen sold 2,000 shares of the company's stock in a transaction that occurred on Thursday, January 2nd. Also, CAO Vaibhav Taneja sold 452 shares of the stock in a transaction dated Wednesday, November 13th. The disclosure for this sale can be found here.

Responding to Morgan Stanley's downgrade, Tesla shares fell 4% on Thursday to below $500 for the first time this week, setting CEO Elon Musk a step back from claiming his huge compensation package tied to Tesla's market value.

The firm's profit of $2.2 billion, or $1.30 a share, on $10.9 billion in revenue, topped expectations of analysts polled by FactSet, who had forecast earnings of $1.02 a share on $9.71 billion of revenue. Finally, Roth Capital reaffirmed a "sell" rating and set a $249.00 price objective on shares of Tesla in a research note on Monday, November 18th. BNP Paribas started coverage on shares of Morgan Stanley in a research note on Tuesday, December 3rd.

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