On July 17, Morgan Stanley declined 3.81% in regular trading, trading at $212.80/share, with turnover of $239 million. The stock continues to retreat from its all-time high of $232.25 reached on July 15 following record Q2 earnings.
The decline reflects a broader sector-wide pullback as investment banking stocks gave back gains following an earnings season that saw results beat expectations. Goldman Sachs fell 5.1% and Citigroup dropped 2.1% in tandem. Adding to the negative sentiment, major U.S. banks including Morgan Stanley disclosed significant headcount reductions during Q2, weighing on investor confidence despite strong revenue performance.
Morgan Stanley had reported Q2 EPS of $3.46, beating the consensus estimate of $2.89 by nearly 19.7%, with net revenue of $21.35 billion surging 27% year-over-year. Equity trading revenue soared 69% to a record $6.3 billion. Despite multiple analyst upgrades post-earnings — including Barclays raising its target to $262, Evercore ISI to $240, and Goldman Sachs to $241 — the stock has faced sustained selling pressure as investors locked in profits following the sharp run-up.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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