Morgan Stanley Stock Price, News & Analysis

Morgan Stanley (NYSE: MS) has issued a $1 billion social bond aimed at supporting affordable housing projects in the U.S. This issuance continues the firm’s strategy to tackle sustainability challenges through market-based solutions. The bond's proceeds will specifically address the needs of low- and moderate-income individuals, which have been exacerbated by the COVID-19 pandemic. With a long history in sustainable finance, Morgan Stanley's initiative is designed to create positive social impacts while maintaining transparency through an established Social Bond Framework.

Morgan Stanley has launched the HBCU Scholars program, aiming to support 60 scholarships over four years for students at Howard University, Morehouse College, and Spelman College. This initiative will provide full tuition covering academic costs, totaling up to $12 million. Additionally, the program includes a career preparedness component, enhancing job readiness for the recipients. The initiative reflects Morgan Stanley's commitment to diversity and inclusion, aligning with its broader strategy announced earlier in June.

Morgan Stanley has announced an agreement to transition the Barclays Global Stock and Rewards business to Shareworks by Morgan Stanley, adding approximately 40 corporate clients and 140,000 stock plan employees. This follows an eight-year partnership where Barclays clients used Shareworks’ platform. The migration aims for a seamless transition, with existing service teams continuing to manage relationships. Morgan Stanley's EMEA operations already service over 125,000 stock plan participants with €14 billion in assets. This move underscores Morgan Stanley's commitment to expand its financial solutions.

Morgan Stanley (NYSE: MS) reported net revenues of $11.7 billion for Q3 2020, up 16% from $10.0 billion a year ago. Net income rose 25% to $2.7 billion ($1.66 per diluted share). Key drivers included strong sales and trading performance and the completion of the E*TRADE acquisition, enhancing growth prospects. The Firm’s ROTCE was 15%, with a Common Equity Tier 1 capital ratio of 17.3%. The Board announced a $0.35 quarterly dividend, payable November 13, 2020.

Morgan Stanley (NYSE: MS) has reached a definitive agreement to acquire Eaton Vance Corp. (NYSE: EV) for approximately $7 billion. This acquisition enhances Morgan Stanley's asset management capabilities with a combined AUM of $1.2 trillion. The deal, which includes $28.25 per share in cash and stock for Eaton Vance shareholders, is seen as strategically beneficial, with anticipated cost savings of $150 million. The transaction is expected to close in Q2 2021, making it accretive to earnings per share shortly after completion.

Morgan Stanley (NYSE: MS) has successfully completed its acquisition of E*TRADE Financial Corporation in an all-stock deal, where E*TRADE shareholders will receive 1.0432 shares of Morgan Stanley for each E*TRADE share. This acquisition enhances Morgan Stanley's Wealth Management division, which now manages $3.3 trillion in assets, and establishes it as an industry leader across various channels. Michael Pizzi, E*TRADE's CEO, will lead the digital self-directed business, while Shelley Leibowitz, an E*TRADE independent director, joins Morgan Stanley's Board of Directors.

Morgan Stanley (NYSE: MS) has received regulatory approval from the Federal Reserve to acquire E*TRADE Financial Corporation. The transaction is expected to be completed on October 2, 2020. James P. Gorman, the Chairman and CEO, expressed satisfaction with the approval and highlighted the hard work of both teams over the past six months. The merger aims to enhance service offerings for clients, employees, and shareholders by bringing together the strengths of both firms.