Morgan Stanley Direct Lending Fund (NYSE:MSDL) Reaches New 52-Week Low - Here's What Happened

Key Points

• MSDL hit a new 52-week low, trading as low as $12.91 and last changing hands near $12.83, down 1.8% from the prior close.
• Analyst sentiment remains cautious: one analyst rates the stock Buy while six rate it Hold, resulting in a consensus Hold rating and a $15.50 price target.
• The company declared a quarterly dividend of $0.45, or $1.80 annualized, implying a 14.1% yield; however, its 260.87% payout ratio highlights potential sustainability concerns.

Shares of Morgan Stanley Direct Lending Fund (NYSE:MSDL - Get Free Report) reached a new 52-week low on Monday. The company traded as low as $12.91 and last traded at $12.8340, with a volume of 33,075 shares changing hands. The stock had previously closed at $13.03.

Analyst Upgrades and Downgrades

A number of research firms have commented on MSDL. JPMorgan Chase & Co. boosted their price target on shares of Morgan Stanley Direct Lending Fund from $14.00 to $14.50 and gave the stock a "neutral" rating in a research note on Thursday, July 2nd. UBS Group lowered their price target on shares of Morgan Stanley Direct Lending Fund from $16.25 to $15.50 and set a "neutral" rating for the company in a report on Tuesday, September 1st. One analyst has rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat, Morgan Stanley Direct Lending Fund currently has a consensus rating of "Hold" and a consensus target price of $15.50.

Morgan Stanley Direct Lending Fund Stock Down 1.8%

The company has a quick ratio of 1.71, a current ratio of 1.71 and a debt-to-equity ratio of 1.20. The company has a market cap of $1.08 billion, a PE ratio of 18.53 and a beta of 0.58. The company's fifty day moving average is $14.59 and its 200-day moving average is $14.96.

Morgan Stanley Direct Lending Fund (NYSE:MSDL - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.45 earnings per share for the quarter, hitting analysts' consensus estimates of $0.45. Morgan Stanley Direct Lending Fund had a return on equity of 9.61% and a net margin of 15.97%. The firm had revenue of $88.77 million during the quarter, compared to analyst estimates of $89.99 million. On average, analysts predict that Morgan Stanley Direct Lending Fund will post 1.82 EPS 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 23rd. Investors of record on Wednesday, September 30th will be paid a $0.45 dividend. The ex-dividend date of this dividend is Wednesday, September 30th. This represents a $1.80 dividend on an annualized basis and a yield of 14.1%. Morgan Stanley Direct Lending Fund's dividend payout ratio is 260.87%.

Institutional Trading of Morgan Stanley Direct Lending Fund

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Rivernorth Capital Management LLC raised its holdings in shares of Morgan Stanley Direct Lending Fund by 37.6% in the first quarter. Rivernorth Capital Management LLC now owns 1,052,351 shares of the company's stock worth $14,691,000 after buying an additional 287,808 shares during the last quarter. Caz Investments LP purchased a new position in shares of Morgan Stanley Direct Lending Fund in the 2nd quarter valued at about $6,040,000. TT Capital Management LLC grew its stake in Morgan Stanley Direct Lending Fund by 19.7% in the 3rd quarter. TT Capital Management LLC now owns 411,059 shares of the company's stock valued at $5,603,000 after acquiring an additional 67,742 shares during the period. Hennion & Walsh Asset Management Inc. lifted its position in shares of Morgan Stanley Direct Lending Fund by 9.9% in the second quarter. Hennion & Walsh Asset Management Inc. now owns 315,801 shares of the company's stock valued at $4,775,000 after acquiring an additional 28,418 shares in the last quarter. Finally, BI Asset Management Fondsmaeglerselskab A S grew its stake in Morgan Stanley Direct Lending Fund by 3.1% during the 1st quarter. BI Asset Management Fondsmaeglerselskab A S now owns 133,731 shares of the company's stock valued at $1,867,000 after acquiring an additional 3,980 shares in the last quarter.

About Morgan Stanley Direct Lending Fund

Morgan Stanley Direct Lending Fund NYSE: MSDL is a business development company that seeks to generate current income and, to a lesser extent, long-term capital appreciation through investments in privately held middle-market companies. The fund is externally managed by MS Capital Partners Adviser Inc, an investment adviser affiliated with Morgan Stanley Investment Management.

MSDL primarily invests in directly originated senior secured loans, including first-lien and unitranche loans, to companies across a range of industries.

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