Morgan Stanley (MS) Offer Superior Growth And Strong Momentum

On the technicals front, Morgan Stanley (NYSE:MS) overall has 96% Sell rating. The stock is also flashing a Sell from the Barchart TrendSpotter trading system. Traders hoping to speculate on the MS’s short-term trajectory should know that short terms indicators for the stock averaged 80% Sell with an average daily trading volume over the past 20 days at 11651555 shares. MS stock has overall a 1% Sell signal considering medium term indicators and the 50-day average daily volume remained almost 12477082 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was 10543433 shares, is 100% Sell on the basis of long term indicators.

The share price is currently staying around the first support level of $41.48. Below this, the next support is placed in the zone of $40.36. Till the time, the MS stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 40.2 on daily chart, which may remain a cause for concern. If the price breaks below $40.36 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $43.23 mark may result into a pull-back move towards $43.86 level.

Morgan Stanley (MS) is projected to climb by 37.39 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $72-month high price target. This represents a whopping 68.97 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $60, which represents a return potential of 40.81 percent when compared to the closing price of the stock of $42.61 on Thursday, December 06. The lowest price target for the stock is $46 — slightly more than 7.96 percent from MS’s current share price.

Here’s a rundown of insider trading activity for sense of Morgan Stanley (NYSE:MS). The earliest insider trade took place on 02/26/2018. Wirth Paul C parted with a total of 20 thousand shares of company at average share price of $56.91. The total for the sales was set at $1.14 million. After this transaction, the Deputy CFO account balance stood at 186 thousand shares. The stock lost -27.38 percent since that insider sale. On 02/16/2018, Pruzan Jonathan, CFO, sold 52.2 thousand shares at a price per share of $55.35. This removed 2.89 million shares from the insider’s fortune and the stock saw a -25.33 percent retreat in value since the news became public. This transaction left 130.05 thousand shares in the CFO account. On 02/15/2018, Chairman and CEO Gorman James P performed a sale transaction worth $5.53 million. This sale at $55.34 each has eliminated 100 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -25.32 percent decrease since the transaction was reported. The insider now is left with 1.27 million shares remaining in the account. Grossman Eric F, who performs the Chief Legal Officer job, sold 17.42 thousand shares for $953.28 thousand. The disposal occurred on 02/14/2018 was priced at $54.72 per share. The share price plunged -24.47 percent since the reporting date. Grossman Eric F now left with a stake of 188.67 thousand MS stock worth $8.04 million after the insider selling.

MS shares dropped -0.51 points or -1.18 percent on Thursday to $42.61 with a heavy trade volume of 17.535 million shares. After opening the session at $41.65, the shares went as high as $42.73 and as low as $40.98, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $73.5 billion and now has 1.72 billion shares outstanding. Morgan Stanley (MS) stock has lost -7.01 percent of market value in 21 trading days.

Analysts at Wells Fargo upped their rating on shares of Morgan Stanley (NYSE:MS) from Market Perform to Outperform in their opinion released on October 24. HSBC Securities analysts have downgraded their rating of MS stock from Buy to Hold in a separate flash note to investors on October 02. Analysts at Bernstein issued an upgrade from Underperform to Mkt Perform for the stock, in a research note that dated back to July 19.

MS stock has a trailing 3-year beta of 1.26, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $4.73 a share in the trailing twelve months. The stock’s value has fallen -18.79 percent year to date (YTD) against a decline of -18.07 percent in 12 month’s time. The company’s shares still trade -28.24 percent away from its 1-year high of $59.38 and 0.69 percent up from 52-week low of $42.32. The average consensus rating on the company is 2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Morgan Stanley (MS) are trading at a P/E ratio of 9.32 times earnings reported for the past 12 months. The industry MS operates in has an average P/E of 33.26. Its P/E ratio went as low as 10.92X and as high as 24.15 over the 5-year span. Further, it is sporting a 1.48 on the Price-to-Sales ratio. Compare this with the industry average P/S of 4.78. 73.6 percent is the gross profit margin for Morgan Stanley and operating margin sits at 23.9 percent. Along with this, the net profit margin is 14.8 percent.

MS will be declaring its Q4 financial results on January 18. Analysts are forecasting revenue to climb 3.5 percent to $9.84B in the next fiscal quarter, while earnings are seen soaring by nearly 23.81 percent to $1.04 per share. History has shown that shares in Morgan Stanley have gone up on 23 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings. In last reported earnings results, it earned $1.17 per share, better than the $1.02, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $9.87B, better than the $9.55B analysts expected. Earnings are estimated to increase by 23.7 percent this year, 4.97 percent next year and continue to increase by 19.13 percent annually for the next 5 years.