Morgan Stanley (MS) Stock Batteling Damaging Fitch Ratings 

• MS stock fell 1.92% in a week and 13.65% in six months but gained 4.95% in a year. 
• The recently announced Fitch ratings caused banking stocks to fall. 

Recently announced Fitch ratings hint that multiple banks need to downgrade, causing Morgan Stanley’s (NYSE: MS) stock to fall by 1.34%. These ratings also caused Bank of America (NYSE: BAC) to decline by 3.20% and Wells Fargo & Co. (NYSE: WFC) to suffer by 2.31%. 

Morgan Stanley (MS Stock) – Financial Analysis

On August 15, 2023, believing in Morgan Stanley’s potential, a high-volume trade was reported. The transaction involved a renowned financial institution with 1.5 Million shares, valued at $86.20 per share. Interestingly it’s above the asking price of $86.17, meaning a premium of $0.03 was paid. 

As per Zack’s consensus analysis, MS stock provided a return of 1.1% over the last month. In comparison, the Zacks S&P 500 composite fell by 0.3%. Morgan Stanley’s financials reported a decline in earnings growth of 23.62% over last year. However, this year the metric was reported with a drop of 6.93%. MS has a forecast of 3.76% growth in the coming five years. 

Morgan Stanley (NYSE: MS) – Technical Analysis

MS stock, at press time, is trading at $86.16 with a fall of 1.34%; previous close and open were at $87.33 and $86.41, respectively. The 52-week range is from $74.67 to $100.99, meaning a slight push would be needed to break the highs. With a volume of 9.31 Million shares, the market cap is $142.939 Billion. 

The trailing twelve-month (TTM) price-to-earnings (P/E) ratio is 15.14, indicative of a low-valued stock price. At the same time, the (TTM) earnings per share (EPS) is $5.69, showcasing strength. Analysts placed a 2.63 rating for moderate buy and estimated a price target at $95.94 with an 11.4% upside. 

Morgan Stanley reported its last earnings on July 18, 2023, where the reported revenue of $13.457 Billion surpassed the expected value of $13.018 Billion by 3.37%. At the same time, the reported earnings of $1.24 per share also exceeded the estimated value of $1.202 per share by 3.20%. 

Compared to the previous quarter, the revenue gained 2.03% while EPS fell by 6.15%. The financials giant will report subsequent earnings on October 17, 2023, where the revenue should be $13.431 Billion, and EPS might be around $1.452. The operating expenses gained 11.02% to $7.74 Billion. 

The net income fell by 12.55% to $2.18 Billion, the net profit margin declined by 14.31% to 16.41, and the profit margin is at 18.86%. The (TTM) revenue is $53.19 Billion, and the year-over-year (YoY) quarterly revenue growth is 2.00%. Total cash in hand at the end of the most recent quarter (MRQ) is $548.27 Billion, while total debt is $356.76 Billion. 

Morgan Stanley (MS Stock) – Candle Exploration

MS share price consolidated in a range from March to July 2023. The positive earnings caused the price action to break out, but market conditions pulled the price down, crossing 200EMA and 50EMA. If the drop continues, the price should bounce off the immediate support at $82.54 or from S1 at $80.68. A rally could be possible if the price stays above $80.00. 

For MS stock price to enter the selling zone, the price will have to surpass 200EMA and sustain the jump for a considerable time. For a strong momentum of MS stock crossing, immediate resistance at $89.65 is necessary. This point is crucial as the price action tried beating it in the past. Descending RSI at 36.45 also hints at a price drop. 

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