Morgan Stanley shares close lower on Friday, holding introduces changes to its wealth management unit

According to a memo by Morgan Stanley (MS), cited by Reuters, the holding has introduced changes to its wealth management unit, involving the promotion of two key executives and the elimination of a layer of management. A spokesperson for Morgan Stanley confirmed the details contained in the document.

Morgan Stanley shares closed lower for a third time in the past five trading sessions on Friday. The stock edged down 0.21% ($0.09) to $42.52, with the intraday high and the intraday low being at $42.94 and $41.90 respectively. In the week ended on June 4th the shares of the financial holding company lost 0.75% of their market value compared to a week ago, which marked the fourth drop in the past five weeks. The stock has pared its advance to 1.87% so far during the current month, following a 3.76% slump in May. The latter has been the second drop out of eight months. For the entire past year, Morgan Stanley shares gained 32.82%.

Vince Lumia, the former head of Morgan Stanley’s private wealth management, has been named as the new head of the unit. He is expected to report to wealth co-heads Andy Saperstein and Shelley OConnor.

Former divisional executives Bill McMahon and Rick Skae have been appointed as vice chairmen of wealth management.

Meanwhile, Mandell Crawley, the holdings Chief Marketing Officer, is to assume Lumia’s post as head of private wealth management.

Morgan Stanley’s wealth management revenue was reported to have increased 11% year-on-year to $4.1 billion during the first quarter, while its pre-tax margin was 24%, or matching the objective set by the bank’s CEO, James Gorman.

According to CNN Money, the 25 analysts, offering 12-month forecasts regarding Morgan Stanley’s stock price, have a median target of $48.00, with a high estimate of $60.00 and a low estimate of $34.00. The median estimate is a 12.89% surge compared to the closing price of $42.52 on June 2nd.

The same media also reported that 15 out of 29 surveyed investment analysts had rated Morgan Stanley’s stock as “Buy”, while 11 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Morgan Stanley stock are presented as follows:

R1 – $42.62
R2 – $42.71
R3 (Range Resistance – Sell) – $42.81
R4 (Long Breakout) – $43.09
R5 (Breakout Target 1) – $43.43
R6 (Breakout Target 2) – $43.58

S1 – $42.42
S2 – $42.33
S3 (Range Support – Buy) – $42.23
S4 (Short Breakout) – $41.95
S5 (Breakout Target 1) – $41.61
S6 (Breakout Target 2) – $41.46

By using the traditional method of calculation, the weekly levels of importance for Morgan Stanley (MS) are presented as follows:

Central Pivot Point – $42.18
R1 – $43.28
R2 – $44.04
R3 – $45.14
R4 – $46.24

S1 – $41.42
S2 – $40.32
S3 – $39.56
S4 – $38.80