Morgan Stanley (NYSE:MS) shares are ticking higher today after the financial major delivered a mixed set of fourth-quarter numbers. Revenue rose by 1.2% year-over-year to $12.9 billion, exceeding estimates by $130 million. EPS of $0.85, on the other hand, lagged expectations by $0.22.
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For the full year, revenue rose to $54.1 billion from $53.7 billion in 2022. However, net income dropped to $9.1 billion from $11 billion. The company’s fourth-quarter pre-tax earnings included $249 million in legal charges and $286 million of charges associated with the special FDIC assessment. Consequently, the efficiency ratio for 2023 stood at 77%.
Lower activity in Investment Banking and Equity & Fixed Income resulted in full-year revenue from the Institutional Securities segment declining to $23.1 billion from $24.4 billion in 2022. In contrast, Wealth Management revenue improved to $26.27 billion from $24.42 billion, due to investment gains and higher net interest income. Investment Management AUM at the end of the year stood at $1.46 trillion.
Notably, MS repurchased shares worth $5.3 billion during the year. The company also declared a quarterly dividend of $0.85 per share. The MS dividend is payable on February 15 to investors of record on January 31.
Is MS Stock a Good Buy?
Overall, the Street has a Moderate Buy consensus rating on Morgan Stanley, and the average MS price target of $94.91 implies a modest 5.8% potential upside in the stock. That’s after a nearly 8% jump in the company’s share price over the past month.
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