Morgan Stanley (NYSE:MS), the $199 billion financial services giant that has delivered a robust 34% return year-to-date, has announced that Stephen Luczo will resign from its Board of Directors effective December 31, 2024. The resignation, submitted on Thursday, is due to personal reasons and not related to any disagreement with the company's operations, policies, or practices.
Luczo's departure follows the previously announced retirement of James Gorman from the Board. In response, Morgan Stanley will reduce the number of directors from 15 to 13, starting January 1, 2025. The company's filing did not specify a replacement for Luczo or any changes to the board's composition following the reduction in size. According to InvestingPro data, Morgan Stanley has maintained consistent dividend payments for 32 consecutive years, demonstrating strong corporate governance practices.
In other recent news, Morgan Stanley Capital Partners (WA:CPAP) (MSCP) has agreed to acquire Prescott's, a healthcare-focused clinical engineering services provider, from Atlantic Street Capital. In addition, MSCP has agreed to sell Sila Services to Goldman Sachs Alternatives' Private Equity business. These transactions underscore Morgan Stanley's strategic investment capabilities and its commitment to both the healthcare and business services sectors.
On the financial front, Morgan Stanley reported strong third-quarter earnings, with revenues reaching $15.4 billion and a net income of $3 billion, surpassing analysts' projections. This impressive performance was primarily driven by a 16% year-over-year increase in revenue, a substantial rise in equity trading, and record wealth management revenue.
In terms of analyst assessments, HSBC downgraded Morgan Stanley's stock to Hold, citing a balanced risk-reward at the current market valuation. Meanwhile, BofA Securities and Evercore ISI maintained positive ratings, raising their price targets for the company. Citi also increased its price target, but retained a Neutral stance, suggesting more attractive opportunities elsewhere in the market.
In leadership news, Morgan Stanley's Board of Directors elected CEO Edward (Ted) Pick to take on the additional role of Chairman, effective January 1, 2025. This decision reflects the company's strategic planning and commitment to ensuring a seamless transition in its top leadership.
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