Movement Alert|Morgan Stanley Rises 3.17% in Regular Trading, Announces Dividend Hike and $20 Billion Buyback After Passing Fed Stress Test

Market Focus06-25 22:33

On June 25, Morgan Stanley rose 3.17% in regular trading, trading at $227.01/share, with turnover of $235 million.

On the news front, the Federal Reserve released its annual stress test results, with all 32 tested banks passing and demonstrating the capacity to absorb over $708 billion in potential losses. Morgan Stanley subsequently announced a quarterly dividend increase from $1.00 to $1.15 per share, representing approximately a 15% hike, and reauthorized a multi-year $20 billion stock repurchase program.

The Fed has frozen stress capital buffer requirements through 2027, meaning this round of test results will not alter actual capital requirements, granting banks greater flexibility in capital return plans. The announcement signals Morgan Stanley's confidence in its capital position and commitment to shareholder returns. Separately, the firm stands to benefit from its role as co-lead underwriter on the SpaceX IPO, where it is expected to earn approximately $100 million in fees from the $75 billion offering.

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