Morgan Stanley Direct Lending Fund (NYSE:MSDL) Posts Earnings Results, Hits Expectations

Key Points

• Morgan Stanley Direct Lending Fund met earnings expectations, reporting quarterly EPS of $0.45, while revenue of $59.28 million fell well short of the $89.99 million consensus estimate.
• The fund declared a quarterly dividend of $0.45, equating to $1.80 annually and an 11.6% yield; its payout ratio stands at 178.22%.
• Analysts remain cautious, with one Buy rating and six Holds, producing an overall “Hold” consensus and an average price target of $15.62 versus the recent share price of $15.47.

Morgan Stanley Direct Lending Fund (NYSE:MSDL - Get Free Report) released its quarterly earnings results on Thursday. The company reported $0.45 earnings per share for the quarter, meeting analysts' consensus estimates of $0.45, Zacks reports. The company had revenue of $59.28 million during the quarter, compared to the consensus estimate of $89.99 million. Morgan Stanley Direct Lending Fund had a net margin of 15.97% and a return on equity of 9.49%.

Morgan Stanley Direct Lending Fund Price Performance

Shares of NYSE:MSDL traded up $0.03 during midday trading on Friday, hitting $15.47. The stock had a trading volume of 761,291 shares, compared to its average volume of 463,429. The company's 50-day moving average price is $15.30 and its 200-day moving average price is $15.21. The company has a market capitalization of $1.31 billion, a P/E ratio of 22.43 and a beta of 0.53. The company has a quick ratio of 1.61, a current ratio of 1.61 and a debt-to-equity ratio of 1.21. Morgan Stanley Direct Lending Fund has a fifty-two week low of $13.66 and a fifty-two week high of $18.17.

Morgan Stanley Direct Lending Fund Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, October 23rd. Shareholders of record on Wednesday, September 30th will be issued a $0.45 dividend. This represents a $1.80 annualized dividend and a yield of 11.6%. The ex-dividend date of this dividend is Wednesday, September 30th. Morgan Stanley Direct Lending Fund's dividend payout ratio (DPR) is currently 178.22%.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on MSDL shares. UBS Group increased their price target on Morgan Stanley Direct Lending Fund from $16.00 to $16.25 and gave the stock a "neutral" rating in a research report on Monday, April 20th. Keefe, Bruyette & Woods dropped their price objective on Morgan Stanley Direct Lending Fund from $16.50 to $16.00 and set a "market perform" rating for the company in a report on Thursday, April 16th. Finally, JPMorgan Chase & Co. upped 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. One research analyst has rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of "Hold" and an average price target of $15.62.

Institutional Trading of Morgan Stanley Direct Lending Fund

Large investors have recently made changes to their positions in the company. Virtu Financial LLC bought a new position in Morgan Stanley Direct Lending Fund in the fourth quarter valued at approximately $523,000. Beacon Pointe Advisors LLC lifted its stake in Morgan Stanley Direct Lending Fund by 100.8% during the fourth quarter. Beacon Pointe Advisors LLC now owns 47,189 shares of the company's stock worth $778,000 after purchasing an additional 23,689 shares during the last quarter. XTX Topco Ltd bought a new stake in Morgan Stanley Direct Lending Fund during the fourth quarter worth $1,345,000. Toronto Dominion Bank boosted its holdings in shares of Morgan Stanley Direct Lending Fund by 26.2% in the 4th quarter. Toronto Dominion Bank now owns 713,641 shares of the company's stock valued at $11,761,000 after purchasing an additional 148,020 shares in the last quarter. Finally, Oxford Asset Management LLP acquired a new stake in shares of Morgan Stanley Direct Lending Fund in the 4th quarter valued at $171,000.

Morgan Stanley Direct Lending Fund Company Profile

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.

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