Morgan Stanley (NYSE:MS) Sets New 1-Year High on Better-Than-Expected Earnings

Shares of Morgan Stanley (NYSE:MS) hit a new 52-week high on Thursday following a better than expected earnings announcement. The stock traded as high as $188.94 and last traded at $187.4810, with a volume of 1586576 shares traded. The stock had previously closed at $180.78.

The financial services provider reported $2.68 EPS for the quarter, beating analysts’ consensus estimates of $2.28 by $0.40. The firm had revenue of $17.90 billion for the quarter, compared to analysts’ expectations of $17.69 billion. Morgan Stanley had a return on equity of 16.40% and a net margin of 13.85%.The business’s revenue for the quarter was up 10.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.22 EPS.

Key Morgan Stanley News

Here are the key news stories impacting Morgan Stanley this week:

• Positive Sentiment: Q4 earnings beat and strong fees: MS posted $2.68 EPS (above estimates) and reported revenue of ~$17.9B with investment‑banking revenue rising ~47% year‑over‑year — a clear driver behind the rally. Morgan Stanley Reports Fourth Quarter and Full Year 2025 Earnings Results
• Positive Sentiment: Sector/peer momentum: Strong results at peers (Goldman, others) and a broader market lift from chip/tech earnings helped financial ETFs and bank stocks, amplifying Morgan Stanley’s move. Stocks Finish Higher As Chip, Bank Stocks Drive Optimism
• Positive Sentiment: Strong forward pipeline: Management and street coverage point to a bigger 2026 IPO/deal pipeline and ongoing wealth‑management growth (AUM ~ $9.3T), suggesting revenues could stay elevated if markets and deal activity persist. Morgan Stanley Sees 2026 IPO Wave, CFO Flags Bigger Pipeline, Broader Dealmaking
• Neutral Sentiment: Analyst reactions are mixed: many firms reaffirm buy/overweight stances or raise targets on banks, but some note that strong fundamentals may already be priced in — raising the risk of “sell the news” moves after the beat. Morgan Stanley Q4 Review: Strong Fundamentals Priced In (Downgrade)
• Negative Sentiment: Cash‑flow and insider selling flagged: while EPS beat, Quiver/filings flagged a material swing to negative operating cash flow (roughly -$3.3B) and notable insider sales over recent months — items that could concern value/longer‑term investors. Morgan Stanley (MS) Releases Q4 2025 Earnings: EPS Beats, Revenue Misses; Operating Cash Flow Turns Deeply Negative

Analyst Ratings Changes

Several analysts have recently issued reports on the stock. HSBC reissued a “hold” rating on shares of Morgan Stanley in a research report on Wednesday, January 7th. Weiss Ratings reissued a “buy (b-)” rating on shares of Morgan Stanley in a report on Wednesday, October 8th. JPMorgan Chase & Co. raised their price target on Morgan Stanley from $157.00 to $162.00 and gave the stock a “neutral” rating in a report on Thursday, January 8th. Barclays lifted their price target on Morgan Stanley from $183.00 to $219.00 and gave the company an “overweight” rating in a research report on Monday, January 5th. Finally, Jefferies Financial Group increased their price objective on Morgan Stanley from $186.00 to $212.00 and gave the stock a “buy” rating in a report on Tuesday, January 6th. Three analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $181.85.

Insider Transactions at Morgan Stanley

In related news, CEO Edward Pick sold 100,000 shares of the business’s stock in a transaction dated Friday, October 31st. The stock was sold at an average price of $164.34, for a total transaction of $16,434,000.00. Following the completion of the transaction, the chief executive officer directly owned 574,986 shares in the company, valued at $94,493,199.24. The trade was a 14.82% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 0.19% of the company’s stock.

Institutional Trading of Morgan Stanley

A number of large investors have recently modified their holdings of the business. Exchange Traded Concepts LLC lifted its holdings in shares of Morgan Stanley by 97.4% in the third quarter. Exchange Traded Concepts LLC now owns 22,927 shares of the financial services provider’s stock valued at $3,644,000 after purchasing an additional 11,311 shares in the last quarter. Asset Management One Co. Ltd. increased its stake in shares of Morgan Stanley by 3.8% during the 3rd quarter. Asset Management One Co. Ltd. now owns 581,325 shares of the financial services provider’s stock worth $92,407,000 after purchasing an additional 21,458 shares in the last quarter. Calamos Wealth Management LLC raised its position in shares of Morgan Stanley by 12.0% during the 3rd quarter. Calamos Wealth Management LLC now owns 87,236 shares of the financial services provider’s stock worth $13,867,000 after purchasing an additional 9,345 shares during the last quarter. Sowell Financial Services LLC raised its position in shares of Morgan Stanley by 45.3% during the 3rd quarter. Sowell Financial Services LLC now owns 30,854 shares of the financial services provider’s stock worth $4,905,000 after purchasing an additional 9,619 shares during the last quarter. Finally, Bahl & Gaynor Inc. lifted its stake in Morgan Stanley by 8.2% in the 2nd quarter. Bahl & Gaynor Inc. now owns 6,252 shares of the financial services provider’s stock valued at $881,000 after buying an additional 473 shares in the last quarter. Institutional investors own 84.19% of the company’s stock.

Morgan Stanley Trading Up 5.7%

The company has a debt-to-equity ratio of 3.27, a quick ratio of 0.79 and a current ratio of 0.79. The business has a fifty day simple moving average of $174.68 and a 200 day simple moving average of $159.32. The stock has a market cap of $303.62 billion, a price-to-earnings ratio of 19.59, a PEG ratio of 1.17 and a beta of 1.20.

About Morgan Stanley

Morgan Stanley (NYSE: MS) is a global financial services firm headquartered in New York City. Founded in 1935 by Henry S. Morgan and Harold Stanley, the company provides a broad range of investment banking, securities, wealth management and investment management services to corporations, governments, institutions and individual investors. Leadership has been guided by a senior executive team and board of directors; James P. Gorman has served as the company’s chief executive and chairman in recent years.

The firm’s primary business activities are organized around three principal businesses: Institutional Securities, Wealth Management and Investment Management.