Morgan Stanley Direct Lending Fund (NYSE:MSDL) Sets New 12-Month Low - What's Next?

Key Points

• The Morgan Stanley Direct Lending Fund (NYSE:MSDL) reached a new 52-week low of $17.57 amid trading, with volume totaling 865,136 shares.
• Multiple analysts have adjusted their price targets for MSDL, with predictions ranging from $19.00 to $21.00, while the average rating remains a cautious "Hold".
• The fund announced a quarterly dividend of $0.50 per share, leading to an annualized dividend yield of 11.3%, despite a high dividend payout ratio of 103.63%.

Shares of Morgan Stanley Direct Lending Fund (NYSE:MSDL - Get Free Report) reached a new 52-week low during mid-day trading on Monday . The company traded as low as $17.57 and last traded at $17.59, with a volume of 865136 shares changing hands. The stock had previously closed at $17.88.

Wall Street Analysts Forecast Growth

MSDL has been the topic of several research analyst reports. UBS Group raised their target price on Morgan Stanley Direct Lending Fund from $20.50 to $21.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 16th. Wells Fargo & Company cut their target price on Morgan Stanley Direct Lending Fund from $19.00 to $17.00 and set an "equal weight" rating on the stock in a research report on Thursday. Royal Bank Of Canada cut their target price on Morgan Stanley Direct Lending Fund from $22.00 to $21.00 and set an "outperform" rating on the stock in a research report on Thursday, May 22nd. Finally, JPMorgan Chase & Co. cut their target price on Morgan Stanley Direct Lending Fund from $20.50 to $19.50 and set a "neutral" rating on the stock in a research report on Thursday, April 24th. Four equities research analysts have rated the stock with a hold rating and one has issued a buy rating to the company. According to MarketBeat.com, Morgan Stanley Direct Lending Fund presently has an average rating of "Hold" and an average target price of $19.70.

Morgan Stanley Direct Lending Fund Stock Up 0.5%

The business has a 50 day moving average of $19.01 and a 200-day moving average of $19.59. The stock has a market cap of $1.56 billion, a PE ratio of 9.20 and a beta of 0.34. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 1.15.

Morgan Stanley Direct Lending Fund (NYSE:MSDL - Get Free Report) last announced its earnings results on Thursday, August 7th. The company reported $0.50 EPS for the quarter, missing analysts' consensus estimates of $0.52 by ($0.02). The business had revenue of $99.51 million during the quarter, compared to analyst estimates of $99.99 million. Morgan Stanley Direct Lending Fund had a net margin of 42.65% and a return on equity of 11.24%. Equities research analysts predict that Morgan Stanley Direct Lending Fund will post 2.56 EPS for the current fiscal year.

Morgan Stanley Direct Lending Fund Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 24th. Stockholders of record on Tuesday, September 30th will be issued a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 11.3%. The ex-dividend date of this dividend is Tuesday, September 30th. Morgan Stanley Direct Lending Fund's payout ratio is presently 103.63%.

Insiders Place Their Bets

In related news, Director Joan Binstock bought 5,659 shares of the company's stock in a transaction dated Monday, August 11th. The shares were acquired at an average price of $17.68 per share, with a total value of $100,051.12. Following the completion of the acquisition, the director owned 39,251 shares in the company, valued at approximately $693,957.68. This trade represents a 16.85% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director David N. Miller bought 10,000 shares of the company's stock in a transaction dated Tuesday, August 12th. The stock was bought at an average cost of $17.69 per share, for a total transaction of $176,900.00. Following the acquisition, the director owned 17,168 shares of the company's stock, valued at approximately $303,701.92. This trade represents a 139.51% increase in their position. The disclosure for this purchase can be found here. In the last 90 days, insiders have acquired 67,907 shares of company stock valued at $1,219,313. 0.21% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Captrust Financial Advisors boosted its stake in shares of Morgan Stanley Direct Lending Fund by 1.8% in the second quarter. Captrust Financial Advisors now owns 49,345 shares of the company's stock valued at $924,000 after buying an additional 880 shares in the last quarter. HRT Financial LP boosted its stake in shares of Morgan Stanley Direct Lending Fund by 123.0% in the second quarter. HRT Financial LP now owns 176,399 shares of the company's stock valued at $3,302,000 after buying an additional 97,279 shares in the last quarter. Engineers Gate Manager LP purchased a new stake in shares of Morgan Stanley Direct Lending Fund in the second quarter valued at approximately $257,000. BI Asset Management Fondsmaeglerselskab A S boosted its stake in shares of Morgan Stanley Direct Lending Fund by 33.4% in the second quarter. BI Asset Management Fondsmaeglerselskab A S now owns 28,845 shares of the company's stock valued at $540,000 after buying an additional 7,221 shares in the last quarter. Finally, BNP Paribas Financial Markets purchased a new stake in shares of Morgan Stanley Direct Lending Fund in the second quarter valued at approximately $299,000.

About Morgan Stanley Direct Lending Fund

Morgan Stanley Direct Lending Fund is a business development company. It is a non-diversified, externally managed specialty finance company focused on lending to middle-market companies. Morgan Stanley Direct Lending Fund is based in NEW YORK.