Morgan Stanley is FAIRLY VALUED at 81.18 per share with modest projections ahead.
We consider Morgan Stanley very steady.
Morgan Stanley has Sharpe Ratio of 0.0809, which conveys that the firm had 0.0809% of return per unit of risk over the last month. Our standpoint towards estimating the volatility of a stock is to use all available market data together with stock specific
technical indicators that cannot be
diversified away. We have found twenty-seven
technical indicators for Morgan Stanley, which you can use to evaluate future volatility of the firm. Please verify Morgan Stanley Mean Deviation of 1.26,
risk adjusted performance of 0.0587, and Downside Deviation of 1.58 to check out if the risk estimate we provide is consistent with the expected return of 0.13%.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Morgan Stanley income statement, its balance sheet, and the statement of cash flows. Potential Morgan Stanley investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Morgan Stanley investors may use each financial statement separately, they are all related. The changes in Morgan Stanley's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Morgan Stanley's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Morgan Stanley
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Morgan Stanley performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Morgan Stanley shares is the value that is considered the true value of the share. If
the intrinsic value of Morgan is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Morgan Stanley. Please read more on our
fundamental analysis page.
How effective is Morgan Stanley in utilizing its assets?
Morgan Stanley reports assets on its Balance Sheet. It represents the amount of Morgan resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Morgan Stanley aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Investment Banking & Brokerage space. To get a better handle on how balance sheet or income statements item affect Morgan volatility, please check the breakdown of all its
fundamentals.
Are Morgan Stanley Earnings Expected to grow?
The
future earnings power of Morgan Stanley involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Morgan Stanley factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Morgan Stanley
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Morgan
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Morgan Stanley earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Morgan Stanley dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Morgan one year expected dividend income is about USD2.38 per share.
At this time, Morgan Stanley's
Dividends Paid is comparatively stable compared to the past year.
Dividend Payout Ratio is likely to gain to 0.67 in 2024, whereas
Dividend Yield is likely to drop 0.04 in 2024.
Investing in dividend-paying stocks, such as Morgan Stanley is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Morgan Stanley must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Morgan Stanley. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Morgan Stanley Gross Profit
Morgan Stanley Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Morgan Stanley previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Morgan Stanley Gross Profit growth over the last 10 years. Please check Morgan Stanley's
gross profit and other
fundamental indicators for more details.
Another Deeper Perspective
Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Morgan Stanley is not uncomon. Institutional investors typically avoid acquiring a high percentage of Morgan Stanley stocks because performing such an act may violate securities laws. They are usually not investing their own money, but rather making investments on behalf of their clients. Let's take a look at how the ownership of Morgan is distributed among investors.
Ownership Allocation
Morgan Stanley holds a total of 1.87 Billion outstanding shares. Over half of Morgan Stanley outstanding shares are owned by
institutional investors. These institutional investors are typically referred to corporate investors that shop for positions in a given instrument to benefit from reduced trade commissions. Consequently, these
institutions are subject to different rules and regulation than regular investors in Morgan Stanley. Please watch out for any change in the
institutional holdings of Morgan Stanley as this could mean something significant has changed or about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.
| Retail Investors13.82% | Insiders20.45% | Institutions65.73% |
| Retail Investors | 13.82 |
| Insiders | 20.45 |
| Institutions | 65.73 |
Some Morgan technical indicators suggest relapse
Latest Jensen Alpha is up to -0.09. Price may fall again. Morgan Stanley has relatively low volatility with skewness of 0.02 and kurtosis of 0.5. However, we advise all investors to independently investigate Morgan Stanley to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Morgan Stanley's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Morgan Stanley's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Bottom Line On Morgan Stanley
While some firms within the capital markets industry are still a little expensive, even after the recent corrections, Morgan Stanley may offer a potential longer-term growth to retail investors. To conclude, as of the 16th of April 2021, we believe that at this point, Morgan Stanley is
fairly valued with
close to average chance of bankruptcy within the next 2 years. Our present buy vs. sell advice on the enterprise is
Buy.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Morgan Stanley. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com