Morgan Stanley is the 6th largest financial institution in the US. The company is ranked 61st on the Forbes Fortune 500 list and is the 39th largest bank in the world. A financial holding company, Morgan Stanley provides a full range of financial services to clients around the world.
Morgan Stanley was formed in 1935 as a result of the Glass-Steagall Act. Glass-Steagall separated commercial and investment banking in a way that forced the then-largest bank J.P. Morgan & Co to split into two groups. J.P. Morgan & Co. chose to retain the commercial side of the business while partners Henry S. Morga, grandson of J.P., and Harold Stanley took the investment end. In its first year, Morgan Stanley did 24% of the IPO business and maintains a lion’s share of the market to this day.
The original company existed and grew through acquisitions until 1987 when it merged with Dean Witter Discover & Co. The new Morgan Stanley Dean Witter Discover & Co existed for 14 years until 2001 when the name was shortened back to Morgan Stanley.
The bank is credited in part with both beginning and ending the financial crisis of 2007/2008. The Process Driven Trading unit lost $300 million in one day due to a short-squeeze that popped the bubble in the housing market. After teetering on the brink of failure Morgan Stanley agreed to become a bank holding company regulated by the Federal Reserve, a key factor in the original decision to split from parent J.P. Morgan & Co. Ironically when given the chance, present-day J.P. Morgan refused to buy Morgan Stanley but that was for the better.
Today, Morgan Stanley operates through three segments via offices in 41 countries and employs more than 75,000 people. Revenue in 2021 topped $49 billion and total assets topped $1.15 trillion.
The operating segments are Institutional Securities, Wealth Management, and Investment Management segments. The Institutional Securities segment is by far the largest and most profitable. It offers a range of services and products for businesses, institutions, and entities that include capital raising, strategic advisory, underwriting, advice on M&A, restructuring, and real estate. The Wealth Management segment provides brokerage and investment advisory services for individuals and employers. The services include brokerage, financial planning, company stock-plan administration, insurance, mortgage loans, lines of credit, and retirement planning. The Investment Management segment provides investment products to a range of institutions, organizations, corporations, and governments.
FAQs
The highest analyst price target is $116.00 ,the lowest forecast is $87.00. The average price target represents 4.80% Increase from the current price of $94.08. Morgan Stanley's analyst rating consensus is a Moderate Buy. This is based on the ratings of 16 Wall Streets Analysts.
Is Morgan Stanley stock a buy sell or hold? ›
Is Morgan Stanley stock a Buy, Sell or Hold? Morgan Stanley stock has received a consensus rating of buy. The average rating score is and is based on 51 buy ratings, 26 hold ratings, and 4 sell ratings.
What is the target price for MS? ›
Stock Price Targets
| High | $118.00 |
|---|
| Median | $95.00 |
| Low | $83.00 |
| Average | $98.25 |
| Current Price | $92.09 |
Based on short-term price targets offered by 22 analysts, the average price target for Morgan Stanley comes to $96.05. The forecasts range from a low of $79.15 to a high of $116.00. The average price target represents an increase of 6.41% from the last closing price of $90.26.
Is MS a buy or sell? ›
Morgan Stanley has received a consensus rating of Hold. The company's average rating score is 2.37, and is based on 7 buy ratings, 12 hold ratings, and no sell ratings.
How financially stable is Morgan Stanley? ›
Fitch Ratings - New York - 30 Oct 2023: Fitch Ratings has affirmed Morgan Stanley's (MS) Long-Term Issuer Default Rating (IDR) at 'A+' and its Short-Term IDR at 'F1'. The Rating Outlook is Stable.
Is MS a good long-term investment? ›
The financial health and growth prospects of MS, demonstrate its potential to perform inline with the market. It currently has a Growth Score of F. Recent price changes and earnings estimate revisions indicate this would be a good stock for momentum investors with a Momentum Score of A.
How often does Morgan Stanley pay dividends? ›
Morgan Stanley ( MS ) pays dividends on a quarterly basis. The next dividend payment is planned on May 15, 2024 . Morgan Stanley ( MS ) has increased its dividends for 11 consecutive years. This is a positive sign of the company's financial stability and its ability to pay consistent dividends in the future.
Why is Morgan Stanley a good stock to buy? ›
Valuation Favorable: Morgan Stanley's stock seems to be trading at a discount with respect to its price/book (P/B) and price/earnings (P/E) ratios. Currently, it has a P/B ratio of 1.50, below the industry average of 2.05. Also, its P/E (F1) ratio of 14.25 compares favorably with the industry's 17.06.
Is MS a good buy? ›
Out of 14 analysts, 3 (21.43%) are recommending MS as a Strong Buy, 3 (21.43%) are recommending MS as a Buy, 8 (57.14%) are recommending MS as a Hold, 0 (0%) are recommending MS as a Sell, and 0 (0%) are recommending MS as a Strong Sell.
A target price is an estimate of the future price of a stock. Target prices are based on earnings forecasts and assumed valuation multiples. Target prices can be used to evaluate stocks and may be even more useful than an equity analyst's rating.
What is the target price for JPM? ›
Stock Price Target
| High | $231.19 |
|---|
| Low | $170.00 |
| Average | $209.63 |
| Current Price | $189.41 |
Largest shareholders include Mitsubishi Ufj Financial Group Inc, State Street Corp, Vanguard Group Inc, BlackRock Inc., Jpmorgan Chase & Co, VTSMX - Vanguard Total Stock Market Index Fund Investor Shares, Wellington Management Group Llp, VFINX - Vanguard 500 Index Fund Investor Shares, Capital International Investors, ...
Who owns the most Morgan Stanley stock? ›
Largest institutional investors in Morgan Stanley
- First and foremost, Mitsubishi UFJ Financial Group (MUFG -0.25%) is by far the largest shareholder of Morgan Stanley. ...
- State Street Corp. ...
- Vanguard is the third-largest institutional investor, with its funds owning more than 109 million shares, accounting for a 6.2% stake.
Based on analysts offering 12 month price targets for MS in the last 3 months. The average price target is $98.8 with a high estimate of $116 and a low estimate of $87.
What is Morgan Stanley's reputation? ›
Morgan Stanley is one of the most highly respected financial institutions in the world. Its name on your resume will open doors throughout your career.
What are the threats to Morgan Stanley? ›
The primary weakness of Morgan Stanley is its substantial exposure to market risks, which could adversely impact its financial performance. Similarly, competition from other financial institutions, changing regulatory requirements, and shifts in customer preferences also pose serious threats to the company.
What happened to Morgan Stanley during the financial crisis? ›
After the 2008 stock market crash, Morgan Stanley and seven other large U.S. banks received capital investments through the Troubled Asset Relief Program (TARP). By June 2009, Morgan Stanley had fully paid back the $10 billion in TARP money to the U.S. Treasury.
Is Morgan Stanley a big deal? ›
Morgan Stanley is one of the top investment banks in both the U.S. and around the world. They have solidified its position at the top of the bulge bracket group, consistently operating on the largest M&A and IPO transactions.
