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

Key Points

• MSDL reached a new 52-week low of $13.21 during Tuesday trading, closing around $13.24 and down 1.1%.
• Analysts maintain a generally cautious outlook, with one Buy rating and six Holds; the consensus price target is $15.50.
• The company reported quarterly EPS in line with expectations at $0.45, while declaring a $0.45 quarterly dividend, equivalent to a 13.6% annualized yield.

Morgan Stanley Direct Lending Fund (NYSE:MSDL - Get Free Report) reached a new 52-week low during mid-day trading on Tuesday. The company traded as low as $13.21 and last traded at $13.2350, with a volume of 598,253 shares changing hands. The stock had previously closed at $13.38.

Analysts Set New Price Targets

A number of brokerages have recently commented on MSDL. JPMorgan Chase & Co. boosted their price objective on shares of Morgan Stanley Direct Lending Fund from $14.00 to $14.50 and gave the stock a "neutral" rating in a research report on Thursday, July 2nd. UBS Group decreased their target price on shares of Morgan Stanley Direct Lending Fund from $16.25 to $15.50 and set a "neutral" rating for the company in a research 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. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $15.50.

Morgan Stanley Direct Lending Fund Stock Down 1.1%

The firm has a market capitalization of $1.11 billion, a P/E ratio of 19.18 and a beta of 0.58. The firm's 50 day moving average is $14.76 and its two-hundred day moving average is $14.99. The company has a debt-to-equity ratio of 1.20, a current ratio of 1.71 and a quick ratio of 1.71.

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 firm had revenue of $88.77 million for the quarter, compared to analyst estimates of $89.99 million. Research 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 business also recently declared 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 is Wednesday, September 30th. This represents a $1.80 dividend on an annualized basis and a yield of 13.6%. Morgan Stanley Direct Lending Fund's dividend payout ratio is 260.87%.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Rivernorth Capital Management LLC increased its stake in shares of 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 purchasing an additional 287,808 shares during the period. Altshuler Shaham Ltd acquired a new stake in Morgan Stanley Direct Lending Fund during the 4th quarter worth approximately $10,719,000. Caz Investments LP bought a new position in Morgan Stanley Direct Lending Fund during the second quarter worth about $6,040,000. Hennion & Walsh Asset Management Inc. boosted its holdings in Morgan Stanley Direct Lending Fund by 9.9% in 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 period. Finally, BI Asset Management Fondsmaeglerselskab A S boosted its holdings in Morgan Stanley Direct Lending Fund by 3.1% in 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 purchasing an additional 3,980 shares during the period.

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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