Morgan Stanley Direct Lending Fund (NYSE:MSDL) Short Interest Update

Morgan Stanley Direct Lending Fund (NYSE:MSDL) was the recipient of a large increase in short interest in the month of March. As of March 13th, there was short interest totaling 2,351,569 shares, an increase of 48.0% from the February 26th total of 1,589,039 shares. Currently, 2.8% of the company’s shares are short sold. Based on an average daily trading volume, of 884,796 shares, the short-interest ratio is currently 2.7 days.

Morgan Stanley Direct Lending Fund Stock Down 2.9%

NYSE:MSDL traded down $0.42 during midday trading on Friday, reaching $14.02. The company had a trading volume of 990,764 shares, compared to its average volume of 883,526. Morgan Stanley Direct Lending Fund has a 12-month low of $14.00 and a 12-month high of $20.90. The firm has a market capitalization of $1.20 billion, a price-to-earnings ratio of 10.01 and a beta of 0.34. The company has a current ratio of 45.48, a quick ratio of 45.48 and a debt-to-equity ratio of 1.19. The stock’s fifty day simple moving average is $15.32 and its 200-day simple moving average is $16.37.

Morgan Stanley Direct Lending Fund (NYSE:MSDL) last issued its quarterly earnings results on Thursday, February 26th. The company reported $0.49 earnings per share for the quarter, hitting the consensus estimate of $0.49. The company had revenue of $49.57 million for the quarter, compared to the consensus estimate 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, sell-side analysts anticipate that Morgan Stanley Direct Lending Fund will post 2.56 earnings per share for the current fiscal year.

Morgan Stanley Direct Lending Fund Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, April 24th. Investors of record on Tuesday, March 31st will be paid a dividend of $0.45 per share. This represents a $1.80 dividend on an annualized basis and a dividend yield of 12.8%. The ex-dividend date is Tuesday, March 31st. Morgan Stanley Direct Lending Fund’s dividend payout ratio is presently 142.86%.

Insider Activity

In related news, CEO Michael Jr. Occi bought 7,000 shares of the stock in a transaction on Monday, March 2nd. The stock was bought at an average price of $14.87 per share, with a total value of $104,090.00. Following the completion of the purchase, 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 acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, insider Jeff M. Day purchased 5,000 shares of the company’s stock in a transaction on Thursday, March 5th. The shares were bought at an average price of $14.89 per share, with a total value of $74,450.00. Following the completion of 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. The disclosure for this purchase is available in the SEC filing. 0.21% of the stock is currently owned by insiders.

Institutional Trading of Morgan Stanley Direct Lending Fund

Hedge funds have recently added to or reduced their stakes in the company. Bartlett & CO. Wealth Management LLC acquired a new position in Morgan Stanley Direct Lending Fund during the 3rd quarter worth approximately $30,000. NewEdge Advisors LLC acquired a new stake in shares of Morgan Stanley Direct Lending Fund in the 3rd quarter valued at $32,000. SHP Wealth Management acquired a new stake in shares of Morgan Stanley Direct Lending Fund in the 4th quarter valued at $39,000. DV Equities LLC purchased a new stake in shares of Morgan Stanley Direct Lending Fund during the 4th quarter worth $41,000. Finally, Steward Partners Investment Advisory LLC lifted its position in shares of Morgan Stanley Direct Lending Fund by 225.0% during the 2nd quarter. Steward Partners Investment Advisory LLC now owns 3,250 shares of the company’s stock worth $61,000 after purchasing an additional 2,250 shares during the last quarter.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on MSDL shares. JPMorgan Chase & Co. decreased their price objective on shares of Morgan Stanley Direct Lending Fund from $16.50 to $14.00 and set a “neutral” rating on the stock in a report on Friday, March 13th. Raymond James Financial reissued an “outperform” rating and issued a $17.00 target price on shares of Morgan Stanley Direct Lending Fund in a research report on Thursday, March 5th. Wells Fargo & Company decreased their price target on Morgan Stanley Direct Lending Fund from $16.00 to $14.00 and set an “equal weight” rating on the stock in a research note on Monday, March 2nd. UBS Group lowered their price target on Morgan Stanley Direct Lending Fund from $18.00 to $16.00 and set a “neutral” rating for the company in a research report on Friday, March 13th. Finally, Keefe, Bruyette & Woods dropped their price objective on 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. One equities research analyst has rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to data from MarketBeat, Morgan Stanley Direct Lending Fund currently has a consensus rating of “Hold” and a consensus price target of $15.58.

About Morgan Stanley Direct Lending Fund

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.