Morgan Stanley Direct Lending Fund (NYSE:MSDL) Share Price Crosses Above 50 Day Moving Average After Analyst Downgrade

Key Points

• Morgan Stanley Direct Lending Fund shares moved above their 50-day moving average of $14.01, reaching an intraday high of $14.35 before last trading at $14.025.
• UBS upgraded the stock from Neutral to Buy but cut its price target to $14.50 from $15.50. Analysts overall maintain a consensus Hold rating, with an average price target of $14.83.
• The fund declared a quarterly dividend of $0.45 per share, equivalent to $1.80 annually and a reported yield of 12.8%.

Morgan Stanley Direct Lending Fund (NYSE:MSDL - Get Free Report)'s share price crossed above its 50-day moving average during trading on Tuesday after UBS Group upgraded the stock from a neutral rating to a buy rating. The stock has a 50-day moving average of $14.01 and traded as high as $14.35. UBS Group now has a $14.50 price target on the stock, down from their previous price target of $15.50. Morgan Stanley Direct Lending Fund shares last traded at $14.0250, with a volume of 554,495 shares traded.

A number of other research analysts have also commented on MSDL. Keefe, Bruyette & Woods dropped their price objective on shares of Morgan Stanley Direct Lending Fund from $16.00 to $15.00 and set a "market perform" rating on the stock in a research note on Monday. Raymond James Financial set a $15.00 price objective on shares of Morgan Stanley Direct Lending Fund in a research report on Thursday, October 22nd. Two research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $14.83.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Sunbelt Securities Inc. acquired a new position in shares of Morgan Stanley Direct Lending Fund during the 1st quarter worth approximately $42,000. State of Alaska Department of Revenue purchased a new position in Morgan Stanley Direct Lending Fund during the third quarter worth $45,000. Ameritas Advisory Services LLC purchased a new position in Morgan Stanley Direct Lending Fund during the second quarter worth $51,000. Integrated Wealth Concepts LLC acquired a new position in shares of Morgan Stanley Direct Lending Fund in the second quarter worth $178,000. Finally, Creekside Partners acquired a new position in shares of Morgan Stanley Direct Lending Fund in the third quarter worth $245,000.

Morgan Stanley Direct Lending Fund Stock Performance

The company has a quick ratio of 1.71, a current ratio of 1.23 and a debt-to-equity ratio of 1.21. The stock has a fifty day moving average price of $14.01 and a two-hundred day moving average price of $14.90. The company has a market capitalization of $1.17 billion, a price-to-earnings ratio of 280.50 and a beta of 0.56.

Morgan Stanley Direct Lending Fund Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, January 22nd. Investors of record on Thursday, December 31st will be given a dividend of $0.45 per share. The ex-dividend date of this dividend is Thursday, December 31st. This represents a $1.80 annualized dividend and a yield of 12.8%. Morgan Stanley Direct Lending Fund's dividend payout ratio is 3,600.00%.

About Morgan Stanley Direct Lending Fund

Morgan Stanley Direct Lending Fund is a business development company that provides financing to U.S. middle-market businesses. Its investment strategy focuses primarily on privately originated senior secured loans, including first-lien and unitranche debt, and may include other debt or equity investments. The fund is externally managed by Morgan Stanley Investment Management, drawing on Morgan Stanley's private credit and direct lending capabilities. It began operations in 2021 and became publicly traded on the New York Stock Exchange in 2024.

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