Trading Morgan Stanley Post Q4 Earnings



Morgan Stanley was one of the last big investment banks to report fourth-quarter earnings. While most banks beat Wall Street expectations, most also posted a drop in investment banking fees.

However, some analysts panned Morgan Stanley’s results due to record earnings in its wealth management division. Learn more about what analysts are predicting for the stock, the latest hedge fund performance and how to trade it below.

Stock: Morgan Stanley
Symbol for Invest.MT5 Account: MS
Date of Idea: 24 January 2023
Timeline: 1 – 6 months
Entry level: $100.00
Target Level: $125.00
Position Size for Invest.MT5 Account: Maximum 5%
Risk: Tall

  • The Invest.MT5 account allows you to buy real stocks and shares from 15 of the largest stock exchanges in the world.

Past performance is not a reliable indicator of future results or future performance.

Every trade is high risk and you can lose more than you risk in a trade. Never invest more than you can afford to lose because some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account build your knowledge first before investing.

Morgan Stanley Q4 Earnings Report

Here are some of the main highlights from the latest fourth quarter earnings report from investment banking giant Morgan Stanley:

  • Net income fell to $2.11 billion, or $1.26 per share, beating analyst estimates of $1.19 per share.
  • Revenue was down to $12.75 billion from $14.52 billion the previous year but higher than analyst estimates of $12.64 billion.
  • Wealth management revenue of $6.63 billion was up 6% from the prior year.
  • Trading revenue of $3.02 billion up from $2.39 billion the previous year.
  • Investment banking revenue was $1.46 billion down 17% from the previous year.

Most banks reported a drop of about 50% in investment banking income in the last quarter due to less merger and acquisition activity influenced by the Federal Reserve’s aggressive interest rates and the uncertainty surrounding long-term borrowing costs.

However, Morgan Stanley beat its peers due to record earnings from its wealth management division and an increase in income from trading operations. Morgan Stanley chief executive, James Gorman highlighted that the results are impressive considering the difficult market environment.

Morgan Stanley is a bank that is considered by investors to be more than an investment banking game. It does not have a large consumer section like Bank of America for example. This means the investment bank has relative stability in its fee-based businesses such as wealth management, which picked up an extra $310 billion in assets to manage last year.

Of course, sentiment on bank stocks will depend on the pace of interest rate hikes this year by the Federal Reserve, so some uncertainty still remains.

Morgan Stanley Hedge Fund Performance

The latest 13F report filed with the Securities and Exchange Commission by 479 hedge funds shows that hedge funds increased their holdings in Morgan Stanley by 2.6 million shares in the last quarter.

However, this could simply be a massive underweight in the investment banking sector as they have been reducing their holdings every quarter since January 2021.

Source: TipRanks23 January 2023

Morgan Stanley Stock Forecast – What are the analysts saying?

According to analysts polled by TipRanks for Morgan Stanley stock forecast in the past 3 months, there are currently 8 buy, 8 hold and 1 sell ratings on the stock. The highest price level for Morgan Stanley stock forecast is $125.00 with the lowest price target at $84.00.

The average price target for Morgan Stanley stock forecast is $100.48.

Source: TipRanks23 January 2023

Sample Business Idea for the Morgan Stanley Share Price

An example trading idea for Morgan Stanley’s share price could be as follows:

  • Buy the stock on a break above $100.00 to allow for current market volatility.
  • Target the highest analyst price around $125.00.
  • Keep your risk small at a maximum of 5% of your total account.
  • Timeline = 1 – 6 months
  • If you buy 10 shares of Morgan Stanley:

    • If the goal is reached = $250.00 potential profit ($125.00 – $100.00 * 10 shares).

Remember that markets go up and down and it is unlikely that the stock price will move up in a straight line. In fact, it may even go much lower before it rises, especially given how volatile bank stocks can be.

Be sure to practice good risk management and always know how much you could lose from trading and the risks involved, as well as the costs.

With the Admirals Invest.MT5 account you can buy and sell US stocks with a commission of $0.02 per share. This means that buying 10 shares of Morgan Stanley stock would result in a commission of $0.20 ($0.02 * 10 shares) to execute a one-way transaction.

There is a low minimum transaction fee of $1. So, the example business idea above would result in a commission of only $1 in total.

How to Buy Morgan Stanley Stock in 4 Steps

With Admirals, you can buy shares in companies like Morgan Stanley with a low commission of only $0.02 per share and a low minimum commission of only $1 on US stocks.

  1. Open an account with Admirals to access the Merchant’s Room.
  2. Click Trade on one of your live or demo accounts to open the online platform.
  3. Look for your stock at the bottom of the Market Watch window and drag the symbol onto the chart.
  4. Use the one-click trade feature, or right-click and open a trade ticket to enter your trade size, stop loss and take profit level.
Source: Admirals MetaTrader 5 Web. Past performance is not a reliable indicator of future results, or future performance.

Click on the banner below to trade Morgan Stanley shares today. ▼▼▼

Do you see the Morgan Stanley Share Price Move Differently?

Remember that all analytical and trading ideas are based on the author’s personal point of view and experience.

If you believe that there is a higher chance that the Morgan Stanley share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account, which Admirals also provides.

The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.

This means you can trade long and short to potentially profit from rising and falling stock prices. Learn more about CFDs in this How to Trade CFDs article.


The data provided provides additional information on all analyses, estimates, forecasts, forecasts, market reviews, weekly outlooks or other similar estimates or information (hereinafter “Analysis”) published on the websites of Admirals investment firms operating under the Admirals trademark ( hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following:

  • This is a marketing communication. The content is published for informational purposes only and is in no way to be considered investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on trading prior to the dissemination of investment research.
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  • The Analysis is prepared by an independent analyst, Jitanchandra Solanki (analyst), (hereinafter “Author”) based on their personal assessments.

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