National Asset Management Inc. raised its position in Morgan Stanley by 16.5% in the first quarter.
"We feel pretty good about the results in light of the environment", Morgan Stanley CFO Jonathan Puzon said on a conference call Wednesday.
Last time, the company shocked Wall Street by reporting EPS of $1.00, smashing the consensus of $0.89 per share. Massachusetts Financial Services Co.
One analyst thinks Morgan Stanley MS, +2.08% could just take off from here.
Asked by an analyst whether he would lift his revenue target in light of recent performance, Gorman said no. Morgan Stanley needs to generate at least US$1 billion in revenue, he said, simply to prove that expenses and capital related to the business are justified.
Investment bank Morgan Stanley said its second-quarter profit rose 11 percent from a year ago, and the bank's trading desks were able to outmaneuver its rivals in a quiet market.
The bank delivered earnings per share of $0.87, up from $0.75 in the second quarter of 2016, and ahead of the $0.76 expected by analysts. That's still below the long-term goal of Morgan's management for a return-on-equity of above 10 percent, however.
Across Morgan Stanley, second-quarter profit rose to US$1.6 billion, or 87 cents per share, from US$1.4 billion, or 75 cents per share, in the same period past year. During the same quarter a year ago, the company earned $0.55 earnings per share.
In the quarter, investment banking revenues climbed 25 percent and trading revenues grew 7 percent. It also beat out Wall Street's earnings per share estimate of 76 cents for the quarter and likely helped MS stock rise today. This buyback authorization authorizes the financial services provider to buy up to 6.1% of its stock through open market purchases. Shares repurchase plans are usually an indication that the company's leadership believes its shares are undervalued.
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Several research firms have commented on MS. Societe Generale raised its rating on Morgan Stanley to Buy on 11/01/2017 in a reversal from its prior Sell rating. Instinet reiterated a "buy" rating and issued a $50.00 target price (down from $51.00) on shares of Morgan Stanley in a research note on Saturday, June 3rd. Finally, Vetr upgraded shares of Morgan Stanley from a "sell" rating to a "hold" rating and set a $40.50 price objective for the company in a research report on Wednesday, May 17th. The company presently has a consensus rating of "Buy" and a consensus target price of $45.31. The shares were sold at an average price of $42.93, for a total value of $9,116,829.45. Following the transaction, the chairman now owns 1,389,378 shares of the company's stock, valued at approximately $59,645,997.54. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink.
Morgan Stanley is a financial holding company.