Published: Sat, January 19, 2019
Markets | By Otis Pena

Wall Street shrugs off weak start to hold at one-month high

Wall Street shrugs off weak start to hold at one-month high

The S&P 500 financials index fell as much as 1 percent, before recovering to trade just 0.11 percent lower. The company possesses an impressive earnings surprise history, beating the Zacks Consensus Estimate in each of the trailing four quarters. He writes that fixed-income trading results have already improved so far in the first quarter and that the firm has a healthy investment banking backlog.

Morgan Stanley (NYSE:MS) last announced its earnings results on Tuesday, October 16th.

USA stocks eked out gains on Thursday to consolidate near a one-month high, helped by advances in the healthcare and industrial sectors and as financials shrugged off Morgan Stanley's disappointing earnings. Finally, Wolfe Research began coverage on shares of Morgan Stanley in a research report on Tuesday, September 25th. They issued an "outperform" rating for the company. The company has a consensus rating of Hold and a consensus target price of $56.06. Following the announcement, the stock was down more than 4% at $42.60 in early trading indications Friday.

Morgan Stanley has for years paid its roughly 15,700 brokers a combination of cash up front and stock, which is deferred for several years and invested by the firm. The company has a debt-to-equity ratio of 2.67, a current ratio of 0.80 and a quick ratio of 0.80.

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Advancing issues outnumbered decliners by a 1.46-to-1 ratio on the NYSE and by a 1.49-to-1 ratio on the Nasdaq. Morgan Stanley has a one year low of $36.74 and a one year high of $59.38.

Although market volatility hurt trading, underwriting, wealth management and asset management revenue, Morgan Stanley is keeping a tight lid on costs and making purposeful decisions to position itself for growth, he said. The institutional investor owned 24,911 shares of the financial services provider's stock after purchasing an additional 3,288 shares during the quarter.

"After strong results from peers yesterday, Morgan Stanley's quarter appears weak, and we expect shares to underperform", said Brian Kleinhanzl, an analyst at Keefe, Bruyette & Woods. The consensus estimates that were calling for $0.89 in EPS on revenue of $9.29 billion, and the financial giant posted EPS of $0.84 and $9.5 billion in revenue in the same period of past year.

Morgan Stanley shares tumbled 6 percent after it posted a surprisingly weak quarterly profit on Thursday, as solid fees from arranging megamergers were offset by a steep plunge in bond trading. Institutional investors own 85.05% of the company's stock. Westbourne Investment Advisors Inc. lifted its stake in shares of Morgan Stanley by 28.3% during the third quarter. Morgan Stanley share price dropped during that unpredictable time, in addition to the stocks of other financial institutions. Girard Partners LTD. acquired a new position in shares of Morgan Stanley in the 3rd quarter worth approximately $115,000. Vigilant Capital Management LLC now owns 1,158 shares of the financial services provider's stock valued at $46,000 after acquiring an additional 750 shares in the last quarter. Canada Pension Plan Investment Board lifted its position in Morgan Stanley by 4.2% during the third quarter.

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