Dj Officer/Dir Cantor Acquires 668 Of Moelis & Co >Mc

What Happened?

Shares of investment banking firm Moelis & Company jumped 3.3% in the morning session after the company was named as the financial advisor to Netflix in its massive $82.7 billion acquisition of Warner Bros. The investment bank advised Netflix on the cash and stock deal to acquire Warner Bros., which included its film and television studios. Securing a role as a financial advisor on such a large-scale transaction represented a significant win for Moelis. These advisory roles typically came with substantial fees, which directly contributed to the firm's revenue. The high-profile nature of the deal also enhanced the company's reputation in the mergers and acquisitions space.

After the initial pop the shares cooled down to $69.06, up 3.9% from previous close.

Is now the time to buy Moelis? Access our full analysis report here.

What Is The Market Telling Us

Moelis’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The previous big move we wrote about was 14 days ago when the stock gained 3.4% on the news that investors grew more optimistic about a potential Federal Reserve interest rate cut in December. 

The positive sentiment was fueled by comments from New York Fed President John Williams, a voting member of the rate-setting Federal Open Market Committee, who stated the central bank could cut rates "in the near term" without jeopardizing its inflation targets. Following his remarks, market expectations for a rate cut in December shifted significantly. According to the CME FedWatch Tool, the probability of a December rate reduction surged from a 37% chance earlier in the day to 70%. While lower rates can compress bank profit margins, investors often view them as a catalyst for broader economic activity, potentially boosting loan demand and reducing the risk of defaults.

Moelis is down 6.9% since the beginning of the year, and at $69.06 per share, it is trading 15% below its 52-week high of $81.20 from February 2025. Investors who bought $1,000 worth of Moelis’s shares 5 years ago would now be looking at an investment worth $1,612.

Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Charles Schwab and its peers.

Investment banks and brokerages facilitate capital raises, mergers and acquisitions, and securities trading. The sector benefits from corporate activity during economic expansion, increased retail trading participation, and advisory opportunities in emerging sectors. Headwinds include economic cycle vulnerability affecting deal flow, compressed trading commissions due to electronic platforms, and regulatory capital requirements constraining certain higher-risk activities.

The 16 investment banking & brokerage stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 4.1% while next quarter’s revenue guidance was in line.

While some investment banking & brokerage stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2% since the latest earnings results.

Charles Schwab

Founded in 1971 as a disruptive force challenging Wall Street's high fees and limited access, Charles Schwab is a wealth management and brokerage firm that provides investment services, banking, and financial advice to individual investors and independent advisors.

Charles Schwab reported revenues of $6.14 billion, up 26.6% year on year. This print exceeded analysts’ expectations by 2.2%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ revenue estimates.

“Our unwavering focus on delivering for clients helped us attract $137.5 billion in 3Q core net new assets plus over 1 million new brokerage accounts for the fourth straight quarter.”

Unsurprisingly, the stock is down 2.3% since reporting and currently trades at $92.18.

Is now the time to buy Charles Schwab? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Morgan Stanley

Founded in 1924 during the post-WWI economic boom by former JP Morgan partners, Morgan Stanley is a global financial services firm that provides investment banking, wealth management, and investment management services to corporations, governments, institutions, and individuals.

Morgan Stanley reported revenues of $18.22 billion, up 18.5% year on year, outperforming analysts’ expectations by 9.2%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

The market seems happy with the results as the stock is up 7.9% since reporting. It currently trades at $169.38.

Is now the time to buy Morgan Stanley? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Perella Weinberg

Founded in 2006 by veteran investment bankers Joseph Perella and Peter Weinberg during a wave of boutique advisory firm launches, Perella Weinberg Partners is a global independent advisory firm that provides strategic and financial advice to corporations, financial sponsors, and government institutions.

Perella Weinberg reported revenues of $164.6 million, down 40.8% year on year, falling short of analysts’ expectations by 8.4%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and EPS estimates.

Perella Weinberg delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 6.5% since the results and currently trades at $17.62.

Read our full analysis of Perella Weinberg’s results here.

Moelis

Founded in 2007 by veteran banker Ken Moelis during the lead-up to the financial crisis, Moelis & Company is an independent investment bank that provides strategic and financial advisory services to corporations, financial sponsors, governments, and sovereign wealth funds.

Moelis reported revenues of $376 million, up 33.9% year on year. This print lagged analysts' expectations by 3.2%. Taking a step back, it was a mixed quarter as it also recorded a beat of analysts’ EPS estimates but a significant miss of analysts’ EBITDA estimates.

The stock is down 4.9% since reporting and currently trades at $63.54.

Read our full, actionable report on Moelis here, it’s free for active Edge members.

Lazard

Tracing its roots back to 1848 when it began as a dry goods merchant in New Orleans, Lazard is a global financial advisory and asset management firm that provides strategic advice to corporations, governments, institutions, and wealthy individuals.

Lazard reported revenues of $724.7 million, up 12.2% year on year. This result beat analysts’ expectations by 1.5%. Overall, it was a very strong quarter as it also recorded a beat of analysts’ EPS estimates and a solid beat of analysts’ AUM estimates.

The stock is up 2.7% since reporting and currently trades at $51.09.

Read our full, actionable report on Lazard here, it’s free for active Edge members.

What Happened?

A number of stocks jumped in the afternoon session after investors grew more optimistic about a potential Federal Reserve interest rate cut in December. 

The positive sentiment was fueled by comments from New York Fed President John Williams, a voting member of the rate-setting Federal Open Market Committee, who stated the central bank could cut rates "in the near term" without jeopardizing its inflation targets. Following his remarks, market expectations for a rate cut in December shifted significantly. According to the CME FedWatch Tool, the probability of a December rate reduction surged from a 37% chance earlier in the day to 70%. While lower rates can compress bank profit margins, investors often view them as a catalyst for broader economic activity, potentially boosting loan demand and reducing the risk of defaults.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Custody Bank company P10 jumped 3.5%. Is now the time to buy P10? Access our full analysis report here, it’s free for active Edge members.
• Auto Loan company Ally Financial jumped 3.4%. Is now the time to buy Ally Financial? Access our full analysis report here, it’s free for active Edge members.
• Investment Banking & Brokerage company Moelis jumped 3.4%. Is now the time to buy Moelis? Access our full analysis report here, it’s free for active Edge members.
• Specialty Finance company Sixth Street Specialty Lending jumped 3.3%. Is now the time to buy Sixth Street Specialty Lending? Access our full analysis report here, it’s free for active Edge members.

Zooming In On P10 (PX)

P10’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was about 2 months ago when the stock dropped 3.6% on the news that multiple insiders reported significant stock sales, raising concerns for investors. An SEC filing showed that on September 22, Edwin A. Poston sold 107,976 shares for a total value of approximately $1.3 million. This followed a separate transaction where Director David M. McCoy sold 44,000 shares on September 19 for over $531,000. While companies can have strong fundamentals, large sales by key insiders can sometimes be seen by the market as a lack of confidence in the company's near-term prospects. These sales took place after the company reported a 15% earnings beat for its second quarter, but the market appeared to focus more on the insider activity, leading to the stock's decline.

P10 is down 29.2% since the beginning of the year, and at $9.09 per share, it is trading 35.9% below its 52-week high of $14.17 from November 2024. Investors who bought $1,000 worth of P10’s shares at the IPO in October 2021 would now be looking at an investment worth $752.07.

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how BGC and the rest of the investment banking & brokerage stocks fared in Q3.

Investment banks and brokerages facilitate capital raises, mergers and acquisitions, and securities trading. The sector benefits from corporate activity during economic expansion, increased retail trading participation, and advisory opportunities in emerging sectors. Headwinds include economic cycle vulnerability affecting deal flow, compressed trading commissions due to electronic platforms, and regulatory capital requirements constraining certain higher-risk activities.

The 16 investment banking & brokerage stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 4.2% while next quarter’s revenue guidance was in line.

While some investment banking & brokerage stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4% since the latest earnings results.

BGC

Tracing its roots back to 1945 and named after founder Bernard Gerald Cantor, BGC Group operates a global brokerage and financial technology platform that facilitates trading across fixed income, foreign exchange, equities, energy, and commodities markets.

BGC reported revenues of $703 million, up 31.2% year on year. This print fell short of analysts’ expectations by 4.5%. Overall, it was a slower quarter for the company with a significant miss of analysts’ EBITDA and revenue estimates.

Unsurprisingly, the stock is down 6.3% since reporting and currently trades at $8.55.

Is now the time to buy BGC? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Morgan Stanley

Founded in 1924 during the post-WWI economic boom by former JP Morgan partners, Morgan Stanley is a global financial services firm that provides investment banking, wealth management, and investment management services to corporations, governments, institutions, and individuals.

Morgan Stanley reported revenues of $18.22 billion, up 18.5% year on year, outperforming analysts’ expectations by 9.2%. The business had an incredible quarter with a beat of analysts’ EPS and revenue estimates.

The market seems content with the results as the stock is up 4.3% since reporting. It currently trades at $163.75.

Is now the time to buy Morgan Stanley? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Perella Weinberg

Founded in 2006 by veteran investment bankers Joseph Perella and Peter Weinberg during a wave of boutique advisory firm launches, Perella Weinberg Partners is a global independent advisory firm that provides strategic and financial advice to corporations, financial sponsors, and government institutions.

Perella Weinberg reported revenues of $164.6 million, down 40.8% year on year, falling short of analysts’ expectations by 8.4%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and EPS estimates.

Perella Weinberg delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 8.1% since the results and currently trades at $17.32.

Read our full analysis of Perella Weinberg’s results here.

Raymond James

Founded in 1962 and headquartered in St. Petersburg, Florida, Raymond James Financial is a diversified financial services company that provides wealth management, investment banking, asset management, and banking services to individuals and institutions.

Raymond James reported revenues of $3.73 billion, up 7.7% year on year. This result surpassed analysts’ expectations by 2.7%. It was a very strong quarter as it also recorded a beat of analysts’ EPS estimates and a decent beat of analysts’ revenue estimates.

The stock is down 5% since reporting and currently trades at $157.74.

Read our full, actionable report on Raymond James here, it’s free for active Edge members.

Moelis

Founded in 2007 by veteran banker Ken Moelis during the lead-up to the financial crisis, Moelis & Company is an independent investment bank that provides strategic and financial advisory services to corporations, financial sponsors, governments, and sovereign wealth funds.

Moelis reported revenues of $376 million, up 33.9% year on year. This print missed analysts’ expectations by 3.2%. Aside from that, it was a mixed quarter as it also recorded a beat of analysts’ EPS estimates but a significant miss of analysts’ EBITDA estimates.

The stock is down 8.2% since reporting and currently trades at $61.34.

Read our full, actionable report on Moelis here, it’s free for active Edge members.