Will Morgan Stanley Stock React to Today's News?

MS investors were likely spooked this afternoon by Barrons's report: "Morgan Stanley Loses $11.7 Million Arbitration Case Over Covered Calls ..." For more coverage, read the full article here. On the back of this news, Morgan Stanley sank -1.1% to a price of $91.94. Are the markets overreacting?

Morgan Stanley, a financial holding company, provides various financial products and services to corporations, governments, financial institutions, and individuals in the Americas, Europe, the Middle East, Africa, and Asia. The company belongs to the Financial Services sector, which has an average price to earnings (P/E) ratio of 13.34 and an average price to book (P/B) ratio of 1.95. In contrast, Morgan Stanley has a trailing 12 month P/E ratio of 13.3 and a P/B ratio of 1.7.

Morgan Stanley has moved -5.3% over the last year compared to -10.2% for the S&P 500 -- a difference of 4.9%. Morgan Stanley has a 52 week high of $109.73 and a 52 week low of $72.05. At today's price of $91.94 per share, Morgan Stanley is -1.93% away from its target price of $93.75, and on average, analysts give the stock a rating of buy.1.4% of the company's shares are linked to short positions, and 63.7% of the shares are owned by institutional investors.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.