Morgan Stanley Shares Slip After 2,500-Job Cut; Trades at 15.1x Forward P/E
Morgan Stanley shares have slid about 8.9% year-to-date and dropped 3.5% on news of a 2,500-job cut, trading roughly 3% below their 12-month moving average. Analysts expect April 15 earnings of $2.89 per share (up 11.1%) on $19.07 billion revenue (+7.5%), while the stock trades at a 15.1x forward P/E.
1. Recent Stock Performance
Morgan Stanley shares have declined roughly 8.9% this year and fell 3.5% in a single session, underperforming major averages. The stock is now about 3% below its 12-month moving average, triggering technical interest.
2. Workforce Reduction
The firm is cutting 2,500 positions—around 3% of its workforce—to streamline costs, while financial advisors remain exempt. Management cites strategic realignment as the rationale for the staffing adjustments.
3. Technical Trading Signal
The drop below the 12-month moving average activated a historical buy-the-dip indicator that has produced an average 3.3% gain one month later and a 10.6% gain over three months in past instances.
4. Earnings and Valuation Outlook
Analysts forecast April 15 earnings of $2.89 per share (up 11.1% year-over-year) on $19.07 billion revenue (+7.5%). The stock trades at a 15.1x forward P/E versus a 13.4x industry average and holds a 1.35 PEG ratio.