Morgan Stanley (NYSE:MS) is among the latest bank giants to report earnings this morning, with adjusted first-quarter earnings of $3.43 per share on $20.58 billion in revenue surpassing expectations. Investment banking revenue was a big catalyst for the topline beat. The stock is 4.6% higher to trade at $191.85, at last glance.
MS hit a record high of $194.55 out of the gate this morning. The shares have finished higher in seven of the last eight sessions, a rally that has reclaimed their year-to-date breakeven level. Longer term, MS sports a 72% year-over-year lead.
The brokerage bunch is skeptical of MS, with 16 of 26 analysts in coverage sporting a "hold" rating, while the 12-month consensus target price of $190.21 is a small deficit to current levels. This means the security could soon enjoy an overdue round of bull notes.
Short-term options traders lean bearish as well, and an unwinding of this pessimism could create additional tailwinds for the bank stock. This is per its Schaeffer's put/call open interest ratio (SOIR) of 1.22 that sits in the 81st percentile of its 12-month range.
That shift in sentiment appears to be already underway. So far today, 8,964 and 4,648 puts have exchanged hands, volume that's six times the amount typically seen at this point. The most active contract by far is the April 195 call, where positions are being bought to open.
