Morgan Stanley Direct Lending Fund (NYSE:MSDL) Short Interest Update

Key Points

• Short interest in the Morgan Stanley Direct Lending Fund (MSDL) surged by 47.4% in August, reaching 278,100 shares.
• Insider transactions included Director Joan Binstock purchasing 5,659 shares and CEO Michael Jr. Occi acquiring 14,000 shares, both reflecting significant increases in their ownership stakes.
• The fund's quarterly dividend of $0.50 per share signifies an annual yield of 11.1%, with a reported dividend payout ratio of 103.63%.

Morgan Stanley Direct Lending Fund (NYSE:MSDL - Get Free Report) was the target of a large growth in short interest during the month of August. As of August 15th, there was short interest totaling 278,100 shares, agrowthof47.4% from the July 31st total of 188,700 shares. Approximately0.3% of the shares of the company are short sold. Based on an average trading volume of 550,800 shares, the days-to-cover ratio is presently 0.5 days. Based on an average trading volume of 550,800 shares, the days-to-cover ratio is presently 0.5 days. Approximately0.3% of the shares of the company are short sold.

Insiders Place Their Bets

In other Morgan Stanley Direct Lending Fund news, Director Joan Binstock bought 5,659 shares of the firm's stock in a transaction that occurred on Monday, August 11th. The shares were acquired at an average cost of $17.68 per share, with a total value of $100,051.12. Following the acquisition, the director owned 39,251 shares of the company's stock, valued at $693,957.68. The trade was a 16.85% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Michael Jr. Occi bought 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, for a total transaction of $248,920.00. Following the completion of the acquisition, the chief executive officer directly owned 21,500 shares in the company, valued at $382,270. The trade was a 186.67% increase in their position. The disclosure for this purchase can be found here. Insiders acquired a total of 57,907 shares of company stock valued at $1,025,013 over the last 90 days. 0.21% of the stock is owned by insiders.

Institutional Trading of Morgan Stanley Direct Lending Fund

Several institutional investors and hedge funds have recently modified their holdings of MSDL. Ameritas Advisory Services LLC bought a new stake in shares of Morgan Stanley Direct Lending Fund during the 2nd quarter worth $41,000. Allworth Financial LP grew its stake in 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 worth $49,000 after purchasing an additional 1,000 shares during the period. Comerica Bank grew its stake in Morgan Stanley Direct Lending Fund by 100.0% during the fourth quarter. Comerica Bank now owns 2,568 shares of the company's stock worth $53,000 after purchasing an additional 1,284 shares during the period. Steward Partners Investment Advisory LLC boosted its holdings 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 worth $61,000 after acquiring an additional 2,250 shares in the last quarter. Finally, AdvisorNet Financial Inc bought a new position in Morgan Stanley Direct Lending Fund in the first quarter worth approximately $66,000.

Morgan Stanley Direct Lending Fund Price Performance

Shares of NYSE:MSDL traded down $0.01 during trading on Friday, reaching $17.97. 402,949 shares of the company traded hands, compared to its average volume of 769,264. The company's 50 day moving average is $18.57 and its two-hundred day moving average is $19.27. The firm has a market capitalization of $1.56 billion, a PE ratio of 9.31 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. Morgan Stanley Direct Lending Fund has a 52 week low of $17.37 and a 52 week high of $21.75.

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

Morgan Stanley Direct Lending Fund Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 24th. Investors of record on Tuesday, September 30th will be given a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a dividend yield of 11.1%. The ex-dividend date is Tuesday, September 30th. Morgan Stanley Direct Lending Fund's dividend payout ratio is currently 103.63%.

Analyst Ratings Changes

MSDL has been the subject of several recent research reports. 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 reduced their price target on Morgan Stanley Direct Lending Fund from $22.00 to $21.00 and set an "outperform" rating for the company in a research note on Thursday, May 22nd. Wells Fargo & Company reduced their price target 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. Finally, UBS Group boosted their price target on Morgan Stanley Direct Lending Fund from $20.50 to $21.00 and gave the company a "neutral" rating in a research note on Wednesday, July 16th. One investment analyst has rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $19.70.

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.

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