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Morgan Stanley (MS) Stock

Morgan Stanley Stock Details, Movements and Public Alerts

Morgan Stanley (MS): The $70.6 Billion Wall Street Firm With $9.3 Trillion in Client Assets

Ted Pick took over as Morgan Stanley's CEO in January 2024, inheriting a firm that James Gorman had transformed from a trading-heavy investment bank into a wealth management powerhouse. Pick's first full year delivered record results across every major metric: $70.6 billion in net revenue (up 14%), $22 billion in pretax profit (up 25%), and $9.3 trillion in client assets. The wealth management division alone generated $31.8 billion in revenue, attracting over $350 billion in net new assets during the year. Investment banking revenue surged 47% in Q4 as M&A activity rebounded globally. The firm returned 45% of earnings to shareholders through dividends and buybacks while maintaining a 15% capital ratio. Pick earned $45 million for 2025, a 32% raise that reflected the record performance.

52-Week Range

$191.62 - $91.86

-16.64% from high · +73.90% from low

Avg Daily Volume

7,158,131

20-day average

100-day avg: 6,376,928

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

15.17

Near market average

Forward P/E

13.77

Earnings expected to grow

PEG Ratio

1.77

Reasonably valued

Price to Book

2.41

EPS (TTM)

$10.21

Price to Sales

3.50

Beta

1.21

Similar volatility to market

Q:How is MS valued relative to its earnings and growth?
Morgan Stanley trades at a P/E ratio of 15.17, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 13.77 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.77 indicates reasonable value when growth is considered.
Q:What is MS's risk profile compared to the market?
With a beta of 1.21, Morgan Stanley is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 2.41 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

24.00%

Operating Margin

38.60%

Return on Equity

15.60%

Return on Assets

1.29%

Revenue Growth (YoY)

11.00%

Earnings Growth (YoY)

20.70%

Q:How profitable and efficient is MS's business model?
Morgan Stanley achieves a profit margin of 24.00%, meaning it retains $24.00 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 38.60% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 15.60% and ROA at 1.29%, the company generates strong returns on invested capital.
Q:What are MS's recent growth trends?
Morgan Stanley's revenue grew by 11.00% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 20.70% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against CAPITAL MARKETS industry averages for proper context.

Dividend Information

Dividend Per Share

$3.93

Dividend Yield

2.54%

Ex-Dividend Date

Jan 30, 2026

Dividend Date

Feb 13, 2026

Q:What dividend income can investors expect from MS?
Morgan Stanley offers a dividend yield of 2.54%, paying $3.93 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Jan 30, 2026.
Q:How reliable is MS's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Morgan Stanley pays $3.93 per share in dividends against earnings of $10.21 per share, resulting in a payout ratio of 38.44%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for Feb 13, 2026.

Company Size & Market

Market Cap

$245.9B

Revenue (TTM)

$70.30B

Revenue/Share (TTM)

$44.66

Shares Outstanding

1.59B

Book Value/Share

$64.37

Asset Type

Common Stock

Q:What is MS's market capitalization and position?
Morgan Stanley has a market capitalization of $245.9B, classifying it as a mega-cap stock (over $200B). These are the largest, most established companies globally, typically offering stability and liquidity but with more modest growth potential. Mega-caps often pay dividends and weather economic downturns better than smaller companies. With 1.59B shares outstanding, the company's ownership is widely distributed. As a major player in the CAPITAL MARKETS industry, it competes with other firms in this sector.
Q:How does MS's price compare to its book value?
Morgan Stanley's book value per share is $64.37, while the current stock price is $159.74, resulting in a price-to-book (P/B) ratio of 2.48. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$195.81

22.58% upside potential

Analyst Recommendations

Strong Buy

2

Buy

7

Hold

15

Sell

0

Strong Sell

1

Q:How reliable are analyst predictions for MS?
25 analysts cover MS with 36% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $195.81 implies 22.6% upside, but targets are often adjusted to follow price moves rather than predict them.
Q:What is the Wall Street consensus on MS?
Current analyst recommendations:2 Strong Buy, 7 Buy, 15 Hold, 01 Strong Sell. The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Mar 17, 2026, 02:07 AM

Technical Indicators

RSI (14-day)

33.77

Neutral

50-Day Moving Average

$175.29

-8.87% below MA-50

200-Day Moving Average

$157.72

1.28% above MA-200

MACD Line

-5.46

MACD Signal

-4.46

MACD Histogram

-1.00

Bearish

Q:What does MS's RSI value tell investors?
The RSI (Relative Strength Index) for MS is currently 33.77, indicating the stock is showing bearish momentum (30-40 range). Selling pressure is evident but not extreme. This often occurs during pullbacks in uptrends or early stages of downtrends. Combined with the price being below the 50-day moving average, this confirms bearish conditions.
Q:How should traders interpret MS's MACD and moving average crossovers?
MACD analysis shows the MACD line at -5.46 below the signal line at -4.46, with histogram at -1.00. This bearish crossover indicates downward pressure. The 50-day MA ($175.29) is above the 200-day MA ($157.72), forming a golden cross pattern that typically signals a long-term uptrend. Price is currently between the MAs, suggesting transition.

Indicators last updated: Mar 17, 2026, 12:55 AM

Active Alerts

Alert Condition
RSI Threshold Cross
Threshold
30
Created
Feb 24, 2026, 04:46 PM

Morgan Stanley (MS) Stock Analysis 2025: Complete Investment Guide

The Wealth Management Transformation

Morgan Stanley's identity has shifted fundamentally over the past decade. Under former CEO James Gorman, the firm acquired E*TRADE in 2020 for $13 billion and Eaton Vance in 2021 for $7 billion, pivoting the revenue mix toward wealth and investment management. Those acquisitions added millions of self-directed brokerage accounts and $500 billion in managed assets. By 2025, wealth management generated $31.8 billion in revenue, making it the firm's largest and most stable business segment.

The strategy is straightforward: wealthy individuals generate recurring fee income that does not depend on market volatility or deal cycles. Morgan Stanley's 16,000+ financial advisors manage relationships with clients whose average account size exceeds $1 million. Net new assets of $350 billion in 2025 demonstrate that the firm continues to attract wealth from competitors and capture intergenerational wealth transfers. CEO Pick has maintained Gorman's wealth-first strategy while pushing to integrate E*TRADE more deeply into the advisory platform.

Investment Banking and Trading

While wealth management provides stability, investment banking and trading still generate substantial revenue and drive outsized profit in strong markets. Q4 2025 investment banking revenue jumped 47% to $2.41 billion as M&A advisory fees surged. Companies that had delayed acquisitions during the 2022-2023 interest rate cycle returned to dealmaking, and Morgan Stanley's advisory franchise captured significant share across all regions.

The institutional securities division (trading and banking combined) benefits from Morgan Stanley's position as one of six bulge-bracket banks with the scale, balance sheet, and client relationships to execute the largest transactions. This is a business with high barriers to entry: winning mandates for multi-billion-dollar mergers requires decades of relationship building and a track record that smaller banks cannot replicate.

Financial Performance

  • •2025 Net Revenue: $70.6 billion (all-time record), up 14% year-over-year
  • •Pretax Profit: $22 billion, up 25% year-over-year
  • •Return on Tangible Common Equity: 21.6%, well above the firm's 20% target
  • •Client Assets: $9.3 trillion across wealth and investment management
  • •Net New Assets: Over $350 billion in 2025 wealth management inflows
  • •Shareholder Returns: 45% of earnings returned through dividends and buybacks; CET1 ratio 15%

Growth Catalysts

  • •Wealth Management Asset Growth: $9.3T in client assets generates fee income that compounds as markets appreciate and net new assets continue flowing in; firm targets $10T+
  • •M&A Activity Recovery: Global deal activity rebounding from 2023 lows; Morgan Stanley's advisory franchise is positioned to capture share as CEO boardroom confidence improves
  • •E*TRADE Integration: Converting self-directed E*TRADE accounts into advised relationships increases revenue per client; millions of accounts remain unconverted
  • •International Expansion: Wealth management growth in Asia-Pacific and Europe where high-net-worth populations are expanding faster than in the US
  • •Capital Markets Revenue: IPO pipeline building as private companies seek public listings; equity underwriting revenue scales in active issuance markets

Risks and Challenges

  • •Market Downturn Sensitivity: A sustained equity market decline would reduce client asset values, compressing fee-based wealth management revenue and trading income simultaneously
  • •Regulatory Capital Requirements: Basel III endgame and evolving bank capital rules could increase the capital Morgan Stanley must hold against trading positions, reducing returns
  • •Deal Activity Cyclicality: Investment banking revenue can swing 40-50% between strong and weak years; reliance on M&A advisory creates quarterly earnings volatility
  • •Competition for Advisors: Wealth management depends on retaining and recruiting top financial advisors; firms compete aggressively on compensation packages and technology platforms
  • •Interest Rate Environment: Net interest income in the wealth division varies with rates; declining rates could reduce the spread earned on client cash balances

Competitive Landscape

Morgan Stanley competes with Goldman Sachs, JPMorgan Chase, and Bank of America across investment banking and wealth management. Goldman remains the closer competitor in institutional securities, while Bank of America's Merrill Lynch and JPMorgan's Private Bank compete directly for wealth management clients. Each firm has different strengths: Goldman leads in trading, JPMorgan in commercial banking breadth, and Bank of America in branch-network-driven wealth gathering.

Morgan Stanley's differentiation is the balance between institutional and wealth businesses. The firm generates roughly half its revenue from wealth management (stable, recurring) and half from investment banking and trading (cyclical, high-margin in good years). This mix provides more earnings stability than Goldman while offering higher growth than pure wealth managers like Raymond James or LPL Financial.

Who Is This Stock Suitable For?

Perfect For

  • ✓Quality investors seeking a well-managed financial institution with record profitability and improving capital returns
  • ✓Income investors who value a growing dividend supported by a 45% payout ratio
  • ✓Those who believe wealth management fee income provides more durable earnings than traditional banking
  • ✓Investors wanting financial sector exposure with less credit risk than commercial banks

Less Suitable For

  • ✗High-growth investors (14% revenue growth is strong for a bank but not a tech stock)
  • ✗Risk-averse investors who worry about market-sensitive earnings during equity downturns
  • ✗Those who believe investment banking fees will decline as deal sizes shrink and competition increases
  • ✗Investors uncomfortable with financial sector regulatory and capital requirement uncertainty

Investment Thesis

Morgan Stanley has completed a multi-year transformation from a trading-heavy investment bank into a balanced financial services firm anchored by $9.3 trillion in wealth management assets. The recurring fee income from this asset base provides earnings stability that pure investment banks lack, while the institutional securities division delivers upside during strong capital markets years. CEO Pick's first full year delivered record results across every metric, validating the strategy Gorman designed and Pick is executing.

The valuation reflects this quality: Morgan Stanley trades at a premium to most bank peers, justified by higher returns on equity (21.6%) and a more predictable revenue mix. The risk is that a bear market simultaneously compresses wealth management fees, kills deal flow, and reduces trading revenue. In that scenario, the stock could underperform the market significantly. For investors who believe equity markets will grow over the long term and wealth accumulation will continue, Morgan Stanley offers one of the highest-quality ways to own a financial franchise.

Conclusion

Morgan Stanley is one of the highest-quality financial stocks available, combining a dominant wealth management franchise with a top-tier investment bank. The stock suits investors who want financial sector exposure with better earnings quality than commercial banks and growing capital returns. The premium valuation is justified by the 21.6% ROTCE and structural shift toward recurring fee income.
Bull Case
$155 (25% upside) - Client assets reach $10T+, M&A supercycle continues, E*TRADE conversion accelerates, margins expand further
Base Case
$130 (5% upside) - Revenue grows 8-10%, wealth management net new assets stay above $300B, capital returns increase modestly
Bear Case
$90 (27% downside) - Equity market correction reduces wealth fees and trading revenue, deal activity stalls, regulatory capital requirements tighten

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