Morgan Stanley Direct Lending Fund (NYSE:MSDL) Announces Earnings Results

Morgan Stanley Direct Lending Fund (NYSE:MSDL) posted its earnings results on Thursday. The company reported $0.49 EPS for the quarter, meeting analysts’ consensus estimates of $0.49, Zacks reports. Morgan Stanley Direct Lending Fund had a return on equity of 10.21% and a net margin of 35.92%.The firm had revenue of $49.57 million for the quarter, compared to analysts’ expectations of $97.30 million.

Morgan Stanley Direct Lending Fund Price Performance

Shares of MSDL traded down $0.67 during mid-day trading on Friday, reaching $14.81. 2,098,392 shares of the company’s stock were exchanged, compared to its average volume of 871,549. Morgan Stanley Direct Lending Fund has a 52-week low of $14.64 and a 52-week high of $20.90. The company has a market cap of $1.29 billion, a price-to-earnings ratio of 8.97 and a beta of 0.26. The company has a 50-day simple moving average of $16.19 and a two-hundred day simple moving average of $16.85. The company has a quick ratio of 1.45, a current ratio of 1.45 and a debt-to-equity ratio of 1.17.

Morgan Stanley Direct Lending Fund Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, April 24th. Shareholders of record on Tuesday, March 31st will be issued a $0.45 dividend. This represents a $1.80 annualized dividend and a dividend yield of 12.2%. The ex-dividend date of this dividend is Tuesday, March 31st. Morgan Stanley Direct Lending Fund’s dividend payout ratio is 121.21%.

Institutional Trading of Morgan Stanley Direct Lending Fund

A number of hedge funds have recently added to or reduced their stakes in MSDL. NewEdge Advisors LLC purchased a new position in shares of Morgan Stanley Direct Lending Fund in the 3rd quarter valued at $32,000. DV Equities LLC bought a new stake in shares of Morgan Stanley Direct Lending Fund in the 4th quarter valued at approximately $41,000. US Bancorp DE increased its stake in Morgan Stanley Direct Lending Fund by 61.9% during the third quarter. US Bancorp DE now owns 3,707 shares of the company’s stock valued at $60,000 after purchasing an additional 1,417 shares during the last quarter. Keystone Financial Group acquired a new stake in Morgan Stanley Direct Lending Fund during the third quarter worth about $72,000. Finally, Kestra Advisory Services LLC acquired a new stake in shares of Morgan Stanley Direct Lending Fund during the 4th quarter worth approximately $80,000.

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on MSDL. Wells Fargo & Company restated an “equal weight” rating and issued a $16.00 price target (down from $17.00) on shares of Morgan Stanley Direct Lending Fund in a research report on Wednesday, January 7th. Keefe, Bruyette & Woods lowered their price target on Morgan Stanley Direct Lending Fund from $20.00 to $18.50 and set a “market perform” rating for the company in a research report on Monday, November 10th. JPMorgan Chase & Co. boosted their price objective on Morgan Stanley Direct Lending Fund from $16.00 to $16.50 and gave the company a “neutral” rating in a report on Monday, November 10th. Zacks Research upgraded Morgan Stanley Direct Lending Fund from a “strong sell” rating to a “hold” rating in a report on Wednesday, November 12th. Finally, Royal Bank Of Canada reiterated a “sector perform” rating and set a $18.00 price target (down from $19.00) on shares of Morgan Stanley Direct Lending Fund in a research note on Wednesday, November 26th. One investment analyst has rated the stock with a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat.com, Morgan Stanley Direct Lending Fund currently has a consensus rating of “Hold” and a consensus price target of $17.58.

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.