Investors who owned stocks in the 2010s generally experienced some big gains. In fact, the SPDR S&P 500 SPY total return for the decade was 250.5%. But there’s no question some big-name stocks didn’t keep pace along the way.
Morgan Stanley’s Difficult Decade
One market laggard of the past decade was investment bank Morgan Stanley MS.
Morgan Stanley and other U.S. banks were hit hard during the financial crisis in 2008 and 2009. Among the big banks that survived the crisis, Morgan Stanley was one of the hardest hit. In fact, if not for a $9 billion investment from Mitsubishi UFJ Financial Group in September 2008 and $107.3 billion in loans from the U.S. Federal Reserve, Morgan Stanley may not have survived the crisis.
Morgan Stanley started the 2010s trading at $30.91 after acquiring Smith Barney from Citigroup Inc C in 2009. Morgan Stanley shares hit their low point of the 2010s during the Eurozone debt crisis in 2011, dropping as low as $11.58.
Morgan Stanley shares recovered to as high as $41.04 in mid-2015 before dropping sharply due to a steep decline in trading revenue. Morgan Stanley hit the $50 level for the first time since the crisis in late 2017, rallying as high as $59.38 in early 2018 before pulling back to $36.74 by the end of the year.
See Also: Here's How Much Investing $100 In JPMorgan Stock Back In 2010 Would Be Worth Today
Morgan Stanley In 2020 And Beyond
Morgan Stanley shares spent most of 2019 trading in a range between $40 and $46 before finally breaking out in the last two months of the year and hitting their decade high of $52.75 just last week. Despite the 10-year rally, Morgan Stanley shares are still nowhere close to their pre-crisis high of $90.95 back in 2007.
Despite the bumpy road, Morgan Stanley investors that held on through a volatile decade turned a significant profit, and $100 worth of Morgan Stanley stock bought in 2010 would be worth about $197 today, assuming reinvested dividends.
Looking ahead, analysts expect additional upside for Morgan Stanley in 2020. The average price target among the 25 analysts covering the stock is $57, suggesting 8.4% upside from current levels.
Photo by Alex Proimos/Wikimedia.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.