Morgan Stanley Direct Lending Fund (NYSE:MSDL) Stock Now Rated "Hold" by Sell-Side Analysts

Key Points

• Analysts rate MSDL “Hold” on average: Six of seven covering firms recommend holding the stock, while one recommends buying it. The average 12-month price target is $15.50, above the reported opening price of $14.24.
• Quarterly earnings met expectations: Morgan Stanley Direct Lending Fund reported $0.45 in EPS, matching consensus, while revenue of $88.77 million fell slightly short of the $89.99 million estimate.
• The fund declared a high-yield dividend: Shareholders will receive $0.45 per share, equivalent to $1.80 annually and a 12.6% yield, although the payout ratio is elevated at 260.87%.

Morgan Stanley Direct Lending Fund (NYSE:MSDL - Get Free Report) has been assigned an average recommendation of "Hold" from the seven research firms that are presently covering the firm, Marketbeat Ratings reports. Six analysts have rated the stock with a hold recommendation and one has given a buy recommendation to the company. The average twelve-month price objective among analysts that have issued ratings on the stock in the last year is $15.50.

MSDL has been the topic of a number of research analyst reports. JPMorgan Chase & Co. lifted their target price on Morgan Stanley Direct Lending Fund from $14.00 to $14.50 and gave the company a "neutral" rating in a research report on Thursday, July 2nd. UBS Group lowered their price target on Morgan Stanley Direct Lending Fund from $16.25 to $15.50 and set a "neutral" rating for the company in a report on Tuesday, September 1st.

Morgan Stanley Direct Lending Fund Trading Up 0.6%

MSDL stock opened at $14.24 on Wednesday. The company has a current ratio of 1.71, a quick ratio of 1.71 and a debt-to-equity ratio of 1.20. Morgan Stanley Direct Lending Fund has a 12-month low of $13.66 and a 12-month high of $17.91. The stock has a market cap of $1.20 billion, a price-to-earnings ratio of 20.64 and a beta of 0.54. The business's 50-day moving average is $15.04 and its 200 day moving average is $15.06.

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

Morgan Stanley Direct Lending Fund Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, October 23rd. Stockholders of record on Wednesday, September 30th will be given a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a dividend yield of 12.6%. The ex-dividend date is Wednesday, September 30th. Morgan Stanley Direct Lending Fund's dividend payout ratio (DPR) is currently 260.87%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. SHP Wealth Management acquired a new position in Morgan Stanley Direct Lending Fund in the fourth quarter valued at approximately $39,000. Sunbelt Securities Inc. purchased a new position in shares of Morgan Stanley Direct Lending Fund during the first quarter worth about $42,000. Ameritas Advisory Services LLC acquired a new position in shares of Morgan Stanley Direct Lending Fund in the second quarter valued at approximately $51,000. Harbour Investments Inc. acquired a new position in Morgan Stanley Direct Lending Fund in the 4th quarter valued at $93,000. Finally, Infrastructure Capital Advisors LLC acquired a new position in shares of Morgan Stanley Direct Lending Fund during the fourth quarter worth about $165,000.

About Morgan Stanley Direct Lending Fund

Morgan Stanley Direct Lending Fund NYSE: MSDL is a business development company focused on providing financing to middle-market companies. The fund seeks to generate current income and, to a lesser extent, capital appreciation by investing primarily in privately negotiated senior secured loans and other debt investments.

MSDL generally targets established businesses across a range of industries and may make investments in companies backed by private equity sponsors as well as in non-sponsored businesses.

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