Morgan Stanley Direct Lending Fund (NYSE:MSDL) Sees Large Volume Increase - Time to Buy?

Key Points

• Morgan Stanley Direct Lending Fund saw unusual trading volume with 473,329 shares traded, a 22% decrease from previous sessions, and the stock is currently priced at $15.95.
• Analysts have mixed opinions on the stock, with UBS raising its price target to $21.00 while Zacks downgraded it to a "strong sell," reflecting a range of ratings from "buy" to "sell" among different firms.
• The fund announced a quarterly dividend of $0.50, yielding 12.7%, although this comes with a payout ratio of 103.63%, indicating potential concerns about sustainability.

Morgan Stanley Direct Lending Fund (NYSE:MSDL - Get Free Report) shares saw unusually-high trading volume on Wednesday . Approximately 473,329 shares traded hands during mid-day trading, a decline of 22% from the previous session's volume of 604,273 shares.The stock last traded at $15.95 and had previously closed at $16.08.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the stock. UBS Group increased their price objective on shares of Morgan Stanley Direct Lending Fund from $20.50 to $21.00 and gave the company a "neutral" rating in a research report on Wednesday, July 16th. Wells Fargo & Company cut their price objective on shares of Morgan Stanley Direct Lending Fund from $19.00 to $17.00 and set an "equal weight" rating for the company in a research report on Thursday, August 14th. Zacks Research downgraded Morgan Stanley Direct Lending Fund from a "hold" rating to a "strong sell" rating in a research report on Friday, August 22nd. Royal Bank Of Canada dropped their price target on Morgan Stanley Direct Lending Fund from $21.00 to $19.00 and set an "outperform" rating for the company in a report on Wednesday, September 10th. Finally, JPMorgan Chase & Co. decreased their price objective on Morgan Stanley Direct Lending Fund from $18.00 to $16.00 and set a "neutral" rating on the stock in a report on Wednesday. One research analyst has rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Morgan Stanley Direct Lending Fund currently has an average rating of "Hold" and an average price target of $18.60.

Morgan Stanley Direct Lending Fund Trading Down 2.3%

The firm has a market capitalization of $1.36 billion, a P/E ratio of 8.15 and a beta of 0.33. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 1.15. The firm has a 50 day moving average of $17.92 and a 200-day moving average of $18.92.

Morgan Stanley Direct Lending Fund (NYSE:MSDL - Get Free Report) last issued its quarterly 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). Morgan Stanley Direct Lending Fund had a return on equity of 11.24% and a net margin of 42.65%.The company had revenue of $99.51 million during the quarter, compared to the consensus estimate of $99.99 million. On average, equities research analysts predict that Morgan Stanley Direct Lending Fund will post 2.56 earnings per share for the current fiscal year.

Morgan Stanley Direct Lending Fund Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 24th. Stockholders of record on Tuesday, September 30th will be given a $0.50 dividend. The ex-dividend date is Tuesday, September 30th. This represents a $2.00 annualized dividend and a dividend yield of 12.7%. Morgan Stanley Direct Lending Fund's payout ratio is presently 103.63%.

Insider Activity

In other news, CEO Michael Jr. Occi acquired 14,000 shares of the firm's stock in a transaction that occurred on Tuesday, August 12th. The shares were acquired at an average cost of $17.78 per share, with a total value of $248,920.00. Following the completion of the purchase, the chief executive officer directly owned 21,500 shares of the company's stock, valued at $382,270. The trade was a 186.67% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Joan Binstock acquired 5,659 shares of the stock in a transaction on Monday, August 11th. The shares were purchased at an average price of $17.68 per share, with a total value of $100,051.12. Following the completion of the transaction, the director owned 39,251 shares of the company's stock, valued at approximately $693,957.68. This represents a 16.85% increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last quarter, insiders have acquired 57,907 shares of company stock worth $1,025,013. Insiders own 0.21% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of MSDL. Ameritas Advisory Services LLC bought a new position in shares of Morgan Stanley Direct Lending Fund in the second quarter worth about $41,000. Allworth Financial LP lifted its stake in Morgan Stanley Direct Lending Fund by 62.3% in the 2nd 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 boosted its position in Morgan Stanley Direct Lending Fund by 225.0% in the second quarter. Steward Partners Investment Advisory LLC now owns 3,250 shares of the company's stock valued at $61,000 after buying an additional 2,250 shares in the last quarter. AdvisorNet Financial Inc bought a new stake in shares of Morgan Stanley Direct Lending Fund during the first quarter worth $66,000. Finally, Creative Financial Designs Inc. ADV bought a new stake in shares of Morgan Stanley Direct Lending Fund during the first quarter worth $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.

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