Morgan Stanley Direct Lending Fund (NYSE:MSDL) Receives Consensus Rating of "Hold" from Brokerages

Key Points

• Morgan Stanley Direct Lending Fund (NYSE: MSDL) received a consensus "Hold" rating from seven covering brokerages, with six analysts on hold and one on buy. The average 1-year price target is about $15.54.
• The fund recently posted Q1 earnings of $0.47 per share, beating estimates by $0.02, though revenue of $58.11 million fell short of expectations. Analysts still project full-year EPS of 1.86.
• MSDL announced a quarterly dividend of $0.45 per share, payable July 24, implying an annualized yield of 11.8%. The payout ratio is high at 178.22%, which may warrant attention.

Shares of Morgan Stanley Direct Lending Fund (NYSE:MSDL - Get Free Report) have been given a consensus rating of "Hold" by the seven ratings firms that are covering the firm, Marketbeat reports. Six equities research analysts have rated the stock with a hold recommendation and one has given a buy recommendation to the company. The average 1-year price target among brokerages that have covered the stock in the last year is $15.5417.

A number of research analysts have recently commented on the company. JPMorgan Chase & Co. lowered their price target on Morgan Stanley Direct Lending Fund from $16.50 to $14.00 and set a "neutral" rating on the stock in a report on Friday, March 13th. UBS Group lifted their target price on Morgan Stanley Direct Lending Fund from $16.00 to $16.25 and gave the stock a "neutral" rating in a report on Monday, April 20th. Wells Fargo & Company lowered their target price on Morgan Stanley Direct Lending Fund from $16.00 to $14.00 and set an "equal weight" rating on the stock in a report on Monday, March 2nd. Keefe, Bruyette & Woods lowered their target price on Morgan Stanley Direct Lending Fund from $16.50 to $16.00 and set a "market perform" rating on the stock in a report on Thursday, April 16th. Finally, Royal Bank Of Canada lowered their target price on Morgan Stanley Direct Lending Fund from $18.00 to $16.00 and set a "sector perform" rating on the stock in a report on Thursday, March 5th.

Morgan Stanley Direct Lending Fund Price Performance

Shares of MSDL opened at $15.25 on Thursday. The firm has a market capitalization of $1.29 billion, a price-to-earnings ratio of 15.10 and a beta of 0.56. The company has a debt-to-equity ratio of 1.21, a quick ratio of 1.61 and a current ratio of 1.61. Morgan Stanley Direct Lending Fund has a one year low of $13.66 and a one year high of $19.94. The stock's fifty day moving average is $14.87 and its 200-day moving average is $15.78.

Morgan Stanley Direct Lending Fund (NYSE:MSDL - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The company reported $0.47 EPS for the quarter, beating analysts' consensus estimates of $0.45 by $0.02. The company had revenue of $58.11 million for the quarter, compared to analyst estimates of $91.89 million. Morgan Stanley Direct Lending Fund had a return on equity of 9.73% and a net margin of 22.84%. Equities analysts anticipate that Morgan Stanley Direct Lending Fund will post 1.86 EPS 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, July 24th. Investors of record on Tuesday, June 30th will be issued a dividend of $0.45 per share. This represents a $1.80 dividend on an annualized basis and a yield of 11.8%. The ex-dividend date of this dividend is Tuesday, June 30th. Morgan Stanley Direct Lending Fund's payout ratio is presently 178.22%.

Insider Transactions at Morgan Stanley Direct Lending Fund

In other news, insider Jeff M. Day bought 5,000 shares of the stock in a transaction that occurred on Thursday, March 5th. The shares were purchased at an average cost of $14.89 per share, with a total value of $74,450.00. Following the completion of the acquisition, the insider directly owned 22,818 shares in the company, valued at approximately $339,760.02. The trade was a 28.06% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Michael Jr. Occi bought 7,000 shares of the stock in a transaction that occurred on Monday, March 2nd. The shares were purchased at an average cost of $14.87 per share, for a total transaction of $104,090.00. Following the completion of the acquisition, the chief executive officer owned 28,500 shares of the company's stock, valued at $423,795. This trade represents a 32.56% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 0.31% of the stock is owned by insiders.

Hedge Funds Weigh In On Morgan Stanley Direct Lending Fund

A number of institutional investors have recently bought and sold shares of MSDL. NewEdge Advisors LLC purchased a new position in Morgan Stanley Direct Lending Fund in the 3rd quarter worth about $32,000. SHP Wealth Management purchased a new position in Morgan Stanley Direct Lending Fund in the 4th quarter worth about $39,000. DV Equities LLC purchased a new position in Morgan Stanley Direct Lending Fund in the 4th quarter worth about $41,000. Sunbelt Securities Inc. purchased a new position in Morgan Stanley Direct Lending Fund in the 1st quarter worth about $42,000. Finally, Ameritas Advisory Services LLC increased its stake in Morgan Stanley Direct Lending Fund by 53.3% in the 3rd quarter. Ameritas Advisory Services LLC now owns 3,388 shares of the company's stock worth $54,000 after purchasing an additional 1,178 shares in the last quarter.

About Morgan Stanley Direct Lending Fund

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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