Morgan Stanley posts strong profit, helped by trading desks

Paterniano Del Favero
Aprile 20, 2017

The legal version of this report can be viewed at This represents a $0.80 annualized dividend and a yield of 1.94%.

However, revenue from trading in stocks, in which Morgan Stanley has held the top spot among Wall Street banks, fell to $2 billion from $2.1 billion.

Further, Morgan Stanley has a decent earnings surprise history.

After releasing its first-quarter earnings, Morgan Stanley's shares jumped two per cent to $41.85 in pre-market trading.

Morgan Stanley (NYSE:MS) opened at 42.57 on Wednesday.

The stock's price switched up -4.77% 20-Days Simple Moving Average, dropped -8.53% from 50-Days Simple Moving Average and rose 9.80% from 200 Days Simple Moving Average. Net income in the unit nearly doubled to $1.7 billion.

Through Tuesday's close, Morgan Stanley's shares had risen about 20 percent since the US presidential election in November, compared with an 18 percent rise in KBW Bank index.

The company, based in NY, said it had earnings of $1 per share.

Net revenue jumped 25 percent to $9.75 billion, beating the average estimate of $9.27 billion. During the same period past year, the firm posted $0.55 EPS.

Analysts described the first quarter as a sign that Morgan Stanley's fortunes are changing, and Gorman barely hid his delight as they complimented the bank's performance. The analysts were expecting the $4.69 billion revenue from the institutional securities segment.

In other Morgan Stanley news, CFO Paul C. Wirth sold 10,000 shares of Morgan Stanley stock in a transaction dated Thursday, January 26th. MS has P/E (Price to Earnings ttm) value of 14.1, Forward P/E of 10.52, P/C (Price to cash per share) of 3.47 and Price to Free Cash Flow (P/FCF) value of 65.19. The short ratio in the company's stock is documented at 1.20 and the short float is around of 0.98%. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website.

In other news, President Thomas Colm Kelleher sold 182,027 shares of the company's stock in a transaction on Wednesday, February 8th. Following the transaction, the chief financial officer now owns 203,557 shares of the company's stock, valued at approximately $9,371,764.28. The disclosure for this sale can be found here. The Russell 2000 index of small-company stocks rose 15 points, or 1.1 percent, to 1,376 after a late gain a day earlier.

The investment bank used proprietary Google search data for its analysis of food delivery app GrubHub, saying the data suggested a better first quarter than now feared, and that "2017 is set up for upward revisions driven by topline beats". If you are reading this story on another publication, it was copied illegally and reposted in violation of United States and worldwide copyright legislation.

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