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

Key Points

• Morgan Stanley Direct Lending Fund shares fell to a new 52-week low of $13.23, below both the 50-day and 200-day moving averages. The stock has a market capitalization of approximately $1.12 billion.
• Analysts maintain a generally cautious outlook, with one Buy rating and six Holds, producing a consensus “Hold” rating and an average price target of $15.50.
• The company reported quarterly EPS of $0.45, matching estimates, and declared a $0.45 quarterly dividend. The annualized $1.80 payout represents a notably high 13.5% yield.

Morgan Stanley Direct Lending Fund (NYSE:MSDL - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Wednesday. The company traded as low as $13.23 and last traded at $13.3060, with a volume of 61581 shares. The stock had previously closed at $13.48.

Analysts Set New Price Targets

Several brokerages have weighed in on MSDL. JPMorgan Chase & Co. lifted their price objective on Morgan Stanley Direct Lending Fund from $14.00 to $14.50 and gave the company a "neutral" rating in a report on Thursday, July 2nd. UBS Group reduced their target price on Morgan Stanley Direct Lending Fund from $16.25 to $15.50 and set a "neutral" rating on the stock in a report on Tuesday, September 1st. One analyst has rated the stock with a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat, Morgan Stanley Direct Lending Fund presently has a consensus rating of "Hold" and an average price target of $15.50.

Morgan Stanley Direct Lending Fund Stock Down 1.1%

The firm's 50-day moving average price is $14.88 and its 200 day moving average price is $15.02. The company has a current ratio of 1.71, a quick ratio of 1.71 and a debt-to-equity ratio of 1.20. The company has a market capitalization of $1.12 billion, a price-to-earnings ratio of 19.29 and a beta of 0.58.

Morgan Stanley Direct Lending Fund (NYSE:MSDL - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported $0.45 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.45. Morgan Stanley Direct Lending Fund had a net margin of 15.97% and a return on equity of 9.61%. The business had revenue of $88.77 million for the quarter, compared to analyst estimates of $89.99 million. On average, sell-side analysts forecast that Morgan Stanley Direct Lending Fund will post 1.82 EPS for the current fiscal year.

Morgan Stanley Direct Lending Fund Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 23rd. Stockholders of record on Wednesday, September 30th will be paid a $0.45 dividend. The ex-dividend date is Wednesday, September 30th. This represents a $1.80 annualized dividend and a dividend yield of 13.5%. Morgan Stanley Direct Lending Fund's dividend payout ratio (DPR) is presently 260.87%.

Institutional Trading of Morgan Stanley Direct Lending Fund

Several institutional investors and hedge funds have recently modified their holdings of the business. Rivernorth Capital Management LLC raised its stake in Morgan Stanley Direct Lending Fund by 37.6% during the first quarter. Rivernorth Capital Management LLC now owns 1,052,351 shares of the company's stock worth $14,691,000 after acquiring an additional 287,808 shares in the last quarter. Altshuler Shaham Ltd acquired a new stake in shares of Morgan Stanley Direct Lending Fund in the 4th quarter valued at approximately $10,719,000. Caz Investments LP acquired a new stake in shares of Morgan Stanley Direct Lending Fund in the 2nd quarter valued at approximately $6,040,000. Hennion & Walsh Asset Management Inc. grew its holdings in shares of Morgan Stanley Direct Lending Fund by 9.9% during the 2nd quarter. Hennion & Walsh Asset Management Inc. now owns 315,801 shares of the company's stock valued at $4,775,000 after purchasing an additional 28,418 shares during the last quarter. Finally, BI Asset Management Fondsmaeglerselskab A S grew its holdings in shares of Morgan Stanley Direct Lending Fund by 140.8% during the 4th quarter. BI Asset Management Fondsmaeglerselskab A S now owns 129,751 shares of the company's stock valued at $2,138,000 after purchasing an additional 75,866 shares during 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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