Morgan Stanley Direct Lending Fund (NYSE:MSDL) Reaches New 12-Month Low – Should You Sell?

Morgan Stanley Direct Lending Fund (NYSE:MSDL)’s stock price hit a new 52-week low during trading on Wednesday. The stock traded as low as $13.23 and last traded at $13.3060, with a volume of 61581 shares trading hands. The stock had previously closed at $13.48.

Analyst Upgrades and Downgrades

MSDL has been the topic of a number of research reports. JPMorgan Chase & Co. boosted their target price on shares of Morgan Stanley Direct Lending Fund from $14.00 to $14.50 and gave the stock a “neutral” rating in a research note on Thursday, July 2nd. UBS Group cut their price target on Morgan Stanley Direct Lending Fund from $16.25 to $15.50 and set a “neutral” rating on the stock in a research note on Tuesday, September 1st. One analyst has rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $15.50.

Morgan Stanley Direct Lending Fund Stock Down 1.1%

The firm has a market capitalization of $1.12 billion, a price-to-earnings ratio of 19.29 and a beta of 0.58. The stock has a fifty day moving average of $14.88 and a two-hundred day moving average of $15.02. The company has a debt-to-equity ratio of 1.20, a current ratio of 1.71 and a quick ratio of 1.71.

Morgan Stanley Direct Lending Fund (NYSE:MSDL) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.45 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.45. The firm had revenue of $88.77 million during the quarter, compared to analyst estimates of $89.99 million. Morgan Stanley Direct Lending Fund had a net margin of 15.97% and a return on equity of 9.61%. Sell-side analysts anticipate that Morgan Stanley Direct Lending Fund will post 1.82 earnings per share for the current year.

Morgan Stanley Direct Lending Fund Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 23rd. Investors of record on Wednesday, September 30th will be paid a dividend of $0.45 per share. This represents a $1.80 dividend on an annualized basis and a yield of 13.5%. The ex-dividend date of this dividend is Wednesday, September 30th. Morgan Stanley Direct Lending Fund’s dividend payout ratio (DPR) is currently 260.87%.

Hedge Funds Weigh In On Morgan Stanley Direct Lending Fund

Several hedge funds and other institutional investors have recently bought and sold shares of MSDL. Altshuler Shaham Ltd bought a new stake in shares of Morgan Stanley Direct Lending Fund during the fourth quarter valued at approximately $10,719,000. Caz Investments LP bought a new position in shares of Morgan Stanley Direct Lending Fund in the 2nd quarter worth $6,040,000. Rivernorth Capital Management LLC lifted its holdings in shares of Morgan Stanley Direct Lending Fund by 37.6% in the 1st quarter. Rivernorth Capital Management LLC now owns 1,052,351 shares of the company’s stock worth $14,691,000 after purchasing an additional 287,808 shares in the last quarter. LM Advisors LLC acquired a new stake in Morgan Stanley Direct Lending Fund in the 2nd quarter valued at $1,310,000. Finally, BI Asset Management Fondsmaeglerselskab A S grew its position in Morgan Stanley Direct Lending Fund by 140.8% in the 4th quarter. BI Asset Management Fondsmaeglerselskab A S now owns 129,751 shares of the company’s stock valued at $2,138,000 after purchasing an additional 75,866 shares during the period.

Morgan Stanley Direct Lending Fund Company Profile

Morgan Stanley Direct Lending Fund (NYSE: MSDL) is a business development company that seeks to generate current income and, to a lesser extent, long-term capital appreciation through investments in privately held middle-market companies. The fund is externally managed by MS Capital Partners Adviser Inc, an investment adviser affiliated with Morgan Stanley Investment Management.

MSDL primarily invests in directly originated senior secured loans, including first-lien and unitranche loans, to companies across a range of industries.