Is Selling Morgan Stanley Here a Winning Strategy? Option Traders Hate The Stock

 Is Selling Morgan Stanley Here a Winning Strategy? Option Traders Hate The Stock

In today’s session Morgan Stanley (MS) recorded an unusually high (3,529) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the January, 2017 put, expecting serious MS decrease. With 3,529 contracts traded and 386984 open interest for the Jan, 17 contract, it seems this is a quite bearish bet. The option with symbol: MS170120P00030000 closed last at: $1.16 or 9.4% down. About 3.42 million shares traded hands. Morgan Stanley (NYSE:MS) has risen 25.01% since March 15, 2016 and is uptrending. It has outperformed by 19.53% the S&P500.

Morgan Stanley (NYSE:MS) Ratings Coverage

Out of 20 analysts covering Morgan Stanley (NYSE:MS), 10 rate it a “Buy”, 2 “Sell”, while 8 “Hold”. This means 50% are positive. $82 is the highest target while $1 is the lowest. The $31.17 average target is -2.81% below today’s ($32.07) stock price. Morgan Stanley has been the topic of 45 analyst reports since July 21, 2015 according to StockzIntelligence Inc. The firm has “Underweight” rating given on Wednesday, February 3 by Atlantic Securities. The stock of Morgan Stanley (NYSE:MS) earned “Buy” rating by Argus Research on Friday, September 4. The stock of Morgan Stanley (NYSE:MS) has “Outperform” rating given on Tuesday, October 20 by RBC Capital Markets. Credit Suisse initiated Morgan Stanley (NYSE:MS) rating on Tuesday, September 15. Credit Suisse has “Neutral” rating and $82 price target. The stock has “Outperform” rating given by JMP Securities on Thursday, October 8. The stock of Morgan Stanley (NYSE:MS) has “Overweight” rating given on Tuesday, February 16 by JP Morgan. The stock of Morgan Stanley (NYSE:MS) earned “Neutral” rating by Guggenheim on Thursday, July 30. On Wednesday, March 30 the stock rating was maintained by Credit Suisse with “Neutral”. The stock of Morgan Stanley (NYSE:MS) earned “Neutral” rating by Macquarie Research on Tuesday, October 20. The company was maintained on Wednesday, August 17 by Argus Research.

According to Zacks Investment Research, “MORGAN STANLEY is a preeminent global financial services firm that maintains leading market positions in each of its three primary businesses: securities; asset management; and credit services. The company combines global strength in investment banking and institutional sales and trading with strength in providing full-service and on-line brokerage services, investment and global asset management services and, primarily through its Discover Card brand, quality consumer credit products.”

Insitutional Activity: The institutional sentiment decreased to 0.85 in Q2 2016. Its down 0.25, from 1.1 in 2016Q1. The ratio dived, as 82 funds sold all Morgan Stanley shares owned while 263 reduced positions. 56 funds bought stakes while 236 increased positions. They now own 1.59 billion shares or 3.33% more from 1.54 billion shares in 2016Q1.
Croft has invested 1.29% of its portfolio in Morgan Stanley (NYSE:MS). Courier Cap has 25,313 shares for 0.13% of their US portfolio. Moreover, Moody State Bank Tru Division has 0.06% invested in Morgan Stanley (NYSE:MS) for 39,938 shares. Morgan Stanley, a New York-based fund reported 605,494 shares. Voya Invest Mgmt Ltd Llc accumulated 0.06% or 885,925 shares. Shelton Cap, a California-based fund reported 90,973 shares. Winfield Inc last reported 0.01% of its portfolio in the stock. Pzena Investment Limited Liability, a New York-based fund reported 12.89M shares. First Personal Fincl has 0.02% invested in the company for 1,748 shares. Regent Inv Mngmt Ltd Limited Liability Company has 0.27% invested in the company for 19,250 shares. Grassi Inv Mngmt owns 130,900 shares or 0.64% of their US portfolio. Cadence Cap Mngmt Ltd Co last reported 26,865 shares in the company. Glg Limited holds 0.34% of its portfolio in Morgan Stanley (NYSE:MS) for 172,915 shares. Diamond Hill Mngmt Incorporated has 12.15M shares for 1.99% of their US portfolio. The Pennsylvania-based Susquehanna Gp Inc Ltd Liability Partnership has invested 0.06% in Morgan Stanley (NYSE:MS).

Insider Transactions: Since June 29, 2016, the stock had 2 insider purchases, and 0 selling transactions for $4.00 million net activity. 1.00M Morgan Stanley (NYSE:MS) shares with value of $2.00M were bought by Trombetta Giandomenico. Shares for $2.00M were bought by BP4 S.r.l..

Morgan Stanley is a financial holding company. The company has a market cap of $60.78 billion. The Firm is a global financial services firm that, through its subsidiaries and affiliates, advises, and originates, trades, manages and distributes capital for, governments, institutions and individuals. It has a 14.71 P/E ratio. The Company’s divisions include Institutional Securities, Wealth Management and Investment Management.

MS Company Profile

Morgan Stanley, incorporated on October 1, 1981, is a financial holding company. The Firm is a global financial services firm that, through its subsidiaries and affiliates, advises, and originates, trades, manages and distributes capital for governments, institutions and individuals. The Company’s divisions include Institutional Securities, Wealth Management and Investment Management. Through its subsidiaries and affiliates, the Company provides a range of services and products to a group of clients and customers, including firms, governments, financial institutions and individuals.

More notable recent Morgan Stanley (NYSE:MS) news were published by: Blogs.Wsj.com which released: “Better Trading Revenue Heightens Anticipation for Morgan Stanley, Goldman” on October 17, 2016, also Reuters.com with their article: “Morgan Stanley’s investment unit settles with FINRA for $2.2 million” published on October 17, 2016, Bloomberg.com published: “Morgan Stanley Ends Bearish Bet on Break-Even Rates After Yellen” on October 17, 2016. More interesting news about Morgan Stanley (NYSE:MS) were released by: Wsj.com and their article: “Morgan Stanley Makes $100-Million Move on Fintech Startup Affirm Inc.” published on October 13, 2016 as well as Cnbc.com‘s news article titled: “Goldman Sachs, JPMorgan, Morgan Stanley mull London exodus” with publication date: October 10, 2016.

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