Morgan Stanley Direct Lending Fund (NYSE:MSDL) Sets New 52-Week Low - Time to Sell?

Key Points

• Morgan Stanley Direct Lending Fund's stock price recently hit a new 12-month low, reaching $17.29 during trading, reflecting a significant decline from its previous closing price of $17.52.
• Analysts have downgraded the stock's target price, with Wells Fargo lowering it to $17.00 and Zacks Research issuing a "strong sell" rating, contributing to a consensus "Hold" rating with a price target of $19.30.
• The fund announced a quarterly dividend of $0.50, providing an annualized yield of 11.5%, despite a high dividend payout ratio of 103.63%.

Morgan Stanley Direct Lending Fund (NYSE:MSDL - Get Free Report) shares hit a new 52-week low during trading on Monday . The company traded as low as $17.29 and last traded at $17.36, with a volume of 213721 shares traded. The stock had previously closed at $17.52.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on the company. Zacks Research downgraded Morgan Stanley Direct Lending Fund from a "hold" rating to a "strong sell" rating in a research note on Friday, August 22nd. Royal Bank Of Canada lowered their price objective on Morgan Stanley Direct Lending Fund from $21.00 to $19.00 and set an "outperform" rating for the company in a research note on Wednesday, September 10th. UBS Group upped their price objective on Morgan Stanley Direct Lending Fund from $20.50 to $21.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 16th. Finally, Wells Fargo & Company lowered their price objective on Morgan Stanley Direct Lending Fund from $19.00 to $17.00 and set an "equal weight" rating for the company in a research note on Thursday, August 14th. One analyst has rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $19.30.

Morgan Stanley Direct Lending Fund Stock Performance

The company has a market cap of $1.50 billion, a P/E ratio of 8.97 and a beta of 0.33. The company has a 50 day moving average price of $18.25 and a 200-day moving average price of $19.05. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 1.15.

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

Morgan Stanley Direct Lending Fund Announces Dividend

The company also recently disclosed 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. The ex-dividend date is Tuesday, September 30th. This represents a $2.00 annualized dividend and a dividend yield of 11.5%. Morgan Stanley Direct Lending Fund's dividend payout ratio is 103.63%.

Insider Transactions at Morgan Stanley Direct Lending Fund

In other news, Director David N. Miller acquired 10,000 shares of the business's stock in a transaction dated Tuesday, August 12th. The stock was acquired at an average price of $17.69 per share, for a total transaction of $176,900.00. Following the completion of the acquisition, the director directly owned 17,168 shares in the company, valued at $303,701.92. This represents a 139.51% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this link. Also, CEO Michael Jr. Occi acquired 14,000 shares of the business's stock in a transaction dated Tuesday, August 12th. The stock was purchased at an average price of $17.78 per share, with a total value of $248,920.00. Following the acquisition, the chief executive officer owned 21,500 shares of the company's stock, valued at approximately $382,270. This trade represents a 186.67% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last three months, insiders have acquired 57,907 shares of company stock worth $1,025,013. Corporate insiders own 0.21% of the company's stock.

Institutional Investors Weigh In On Morgan Stanley Direct Lending Fund

Hedge funds have recently modified their holdings of the stock. Ameritas Advisory Services LLC purchased a new stake in shares of Morgan Stanley Direct Lending Fund during the second quarter valued at $41,000. Allworth Financial LP lifted its holdings in shares of Morgan Stanley Direct Lending Fund by 62.3% during the second quarter. Allworth Financial LP now owns 2,606 shares of the company's stock valued at $49,000 after purchasing an additional 1,000 shares during the last quarter. Steward Partners Investment Advisory LLC lifted its holdings in shares of Morgan Stanley Direct Lending Fund by 225.0% during the second quarter. Steward Partners Investment Advisory LLC now owns 3,250 shares of the company's stock valued at $61,000 after purchasing an additional 2,250 shares during the last quarter. AdvisorNet Financial Inc purchased a new stake in shares of Morgan Stanley Direct Lending Fund during the first quarter valued at $66,000. Finally, Creative Financial Designs Inc. ADV purchased a new stake in shares of Morgan Stanley Direct Lending Fund during the first quarter valued at $71,000.

Morgan Stanley Direct Lending Fund Company Profile

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.