Trimming This Financial Holding After Price Target Boost
| Symbol | Transaction Type (Sell/Buy) | # Shares Traded |
|---|---|---|
| MS | Sell | 150 |
After you receive this alert and when the market opens later on Friday morning, the Pro Portfolio will sell 150 shares of Morgan Stanley ($MS) at or near $218. Following the trade, the Portfolio will own 1,150 MS shares, roughly 4.0% of the Portfolio’s assets.
When we boosted our price target on MS shares on Wednesday to $225, we indicated the likelihood that the Portfolio’s position size would move past the 4.5% level as MS shares continued to melt up toward that new price target. Sure enough, that’s what happened on Thursday, and the $218.27 MS closing price pushed the Portfolio’s position size to 4.53%.
That, the 40% move in the shares since mid-March, and the increasingly deeper overbought condition in the shares are leading us to take some prudent portfolio action. We continue to see a robust IPO market and continued M&A activity, which bodes well for Morgan’s investment banking fees in the coming quarters. With that in mind, we are keeping a sizable position in the shares, but we will remain disciplined investors. Should we see the position size run past 4.5% again, we will once again bow to our portfolio discipline.
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(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade’s executed price here. Be sure to toggle the chart to sort by Purchase Date.)
At the time of publication, TheStreet Pro Portfolio was long MS shares
