Morgan Stanley Direct Lending Fund (NYSE:MSDL) Receives Average Recommendation of “Hold” from Brokerages

Morgan Stanley Direct Lending Fund (NYSE:MSDL) has earned an average rating of “Hold” from the seven analysts that are currently covering the company, MarketBeat reports. Six investment analysts have rated the stock with a hold rating and one has assigned a buy rating to the company. The average 12 month price objective among analysts that have issued a report on the stock in the last year is $15.5833.

Several brokerages have weighed in on MSDL. Raymond James Financial reaffirmed an “outperform” rating and set a $17.00 price target on shares of Morgan Stanley Direct Lending Fund in a report on Thursday, March 5th. Keefe, Bruyette & Woods reduced their price objective on shares of Morgan Stanley Direct Lending Fund from $18.50 to $16.50 and set a “market perform” rating for the company in a research note on Monday, March 2nd. UBS Group decreased their price objective on shares of Morgan Stanley Direct Lending Fund from $18.00 to $16.00 and set a “neutral” rating on the stock in a research report on Friday. Royal Bank Of Canada lowered their target price on shares of Morgan Stanley Direct Lending Fund from $18.00 to $16.00 and set a “sector perform” rating on the stock in a research note on Thursday, March 5th. Finally, Wells Fargo & Company cut their price target on Morgan Stanley Direct Lending Fund from $16.00 to $14.00 and set an “equal weight” rating for the company in a research note on Monday, March 2nd.

Morgan Stanley Direct Lending Fund Stock Performance

Shares of MSDL opened at $14.60 on Friday. The business has a 50-day simple moving average of $15.73 and a two-hundred day simple moving average of $16.62. The company has a quick ratio of 45.48, a current ratio of 45.48 and a debt-to-equity ratio of 1.19. Morgan Stanley Direct Lending Fund has a 52 week low of $14.25 and a 52 week high of $20.90. The stock has a market cap of $1.25 billion, a price-to-earnings ratio of 10.43 and a beta of 0.34.

Morgan Stanley Direct Lending Fund (NYSE:MSDL) last posted its quarterly earnings data on Thursday, February 26th. The company reported $0.49 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.49. The firm had revenue of $49.57 million for the quarter, compared to analysts’ expectations of $97.30 million. Morgan Stanley Direct Lending Fund had a return on equity of 9.88% and a net margin of 30.73%. On average, analysts expect that Morgan Stanley Direct Lending Fund will post 2.56 EPS for the current year.

Morgan Stanley Direct Lending Fund Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, April 24th. Investors of record on Tuesday, March 31st will be given a dividend of $0.45 per share. The ex-dividend date is Tuesday, March 31st. This represents a $1.80 annualized dividend and a dividend yield of 12.3%. Morgan Stanley Direct Lending Fund’s dividend payout ratio (DPR) is currently 142.86%.

Insider Activity at Morgan Stanley Direct Lending Fund

In related news, CEO Michael Jr. Occi acquired 7,000 shares of the business’s stock in a transaction on Monday, March 2nd. The stock was acquired at an average cost of $14.87 per share, with a total value of $104,090.00. Following the acquisition, the chief executive officer directly owned 28,500 shares in the company, valued at $423,795. This represents a 32.56% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider Jeff M. Day acquired 5,000 shares of Morgan Stanley Direct Lending Fund stock in a transaction dated Thursday, March 5th. The shares were bought at an average price of $14.89 per share, for a total transaction of $74,450.00. Following the transaction, the insider owned 22,818 shares of the company’s stock, valued at approximately $339,760.02. The trade was a 28.06% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 0.21% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Morgan Stanley Direct Lending Fund

Hedge funds and other institutional investors have recently modified their holdings of the stock. Sumitomo Mitsui Trust Group Inc. increased its holdings in Morgan Stanley Direct Lending Fund by 36.2% in the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 505,062 shares of the company’s stock valued at $8,121,000 after acquiring an additional 134,303 shares during the last quarter. Obermeyer Wealth Partners bought a new position in shares of Morgan Stanley Direct Lending Fund during the 3rd quarter valued at about $418,000. Elevate Capital Advisors LLC bought a new position in shares of Morgan Stanley Direct Lending Fund during the 3rd quarter valued at about $173,000. Generali Asset Management SPA SGR grew its position in shares of Morgan Stanley Direct Lending Fund by 3.9% during the third quarter. Generali Asset Management SPA SGR now owns 1,829,964 shares of the company’s stock valued at $29,426,000 after purchasing an additional 68,014 shares in the last quarter. Finally, Muzinich & Co. Inc. grew its position in shares of Morgan Stanley Direct Lending Fund by 28.3% during the third quarter. Muzinich & Co. Inc. now owns 584,621 shares of the company’s stock valued at $9,401,000 after purchasing an additional 128,990 shares in the last quarter.

Morgan Stanley Direct Lending Fund Company Profile

Morgan Stanley Direct Lending Fund (NYSE: MSDL) is a closed-end management investment company that seeks to provide investors with attractive current income and the potential for capital appreciation. The fund primarily invests in senior secured loans and other debt instruments issued by middle-market companies. By focusing on floating-rate structures, it aims to offer a measure of protection against rising interest rates while generating regular cash distributions.

The fund’s investment strategy centers on building a diversified portfolio of direct lending opportunities across a broad range of industries, including healthcare, business services, and industrials.