SCHEDULE 13G/A: Morgan Stanley Reduces Stake in Applied Therapeutics Below 5% Threshold

Morgan Stanley and its subsidiary have filed an amended Schedule 13G, indicating they are no longer beneficial owners of more than five percent of Applied Therapeutics, Inc.'s common stock.

Summary

• Morgan Stanley and its wholly-owned subsidiary, Morgan Stanley Capital Services LLC, have filed an Amendment No. 2 to Schedule 13G regarding their beneficial ownership in Applied Therapeutics, Inc.
• As of January 31, 2025, Morgan Stanley ceased to be the beneficial owner of more than five percent of Applied Therapeutics' common stock.
• Morgan Stanley's aggregate beneficial ownership is reported as 2,858,931 shares, representing 2.5% of the class.
• Morgan Stanley Capital Services LLC's aggregate beneficial ownership is reported as 2,667,759 shares, representing 2.3% of the class.
• The securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing the control of the issuer.

Sentiment

Score: 4

Explanation: The filing indicates a major institutional investor, Morgan Stanley, has reduced its stake in Applied Therapeutics, Inc. below the 5% beneficial ownership threshold. While a compliance filing, this reduction could be perceived as a mildly negative signal by the market regarding institutional confidence, though the document itself does not provide a qualitative assessment.

Negatives

• Morgan Stanley, a significant institutional investor, has reduced its beneficial ownership in Applied Therapeutics, Inc. below the 5% threshold, which could be interpreted by the market as a decrease in institutional confidence.

Industry Context

This filing reflects a change in a major institutional investor's stake in a biotechnology company. While not indicative of broader industry trends, such changes can influence investor sentiment towards the specific company and potentially other companies in the sector if a pattern of institutional divestment emerges.

Related Party Transactions

• Morgan Stanley Capital Services LLC is a wholly-owned subsidiary of Morgan Stanley, and their beneficial ownership is reported collectively by Morgan Stanley as a parent holding company.

Stakeholder Impact

• Shareholders: The reduction in stake by a prominent institutional investor like Morgan Stanley could lead to a negative perception and potentially impact the company's stock price.

Key Dates

Keywords

Applied Therapeutics, Morgan Stanley, Schedule 13G, SEC filing, beneficial ownership, common stock, institutional investor, ownership disclosure