UBS Group Lowers Morgan Stanley Direct Lending Fund (NYSE:MSDL) Price Target to $16.00

Key Points

• UBS Group cut its price target on Morgan Stanley Direct Lending Fund to $16.00 (from $18.00) and maintained a "neutral" rating; the consensus analyst price target is $15.58 with an average rating of Hold.
• Shares trade around $14.60—below analyst targets—with a 52-week range of $14.25–$20.90 and a $1.25 billion market cap; the fund reported EPS of $0.49 that met estimates while revenue missed substantially ($49.57M vs. $97.30M expected).
• Insider buying occurred in early March, with CEO Michael Jr. Occi and director Jeff M. Day purchasing shares and increasing their stakes, signaling notable insider buying despite insiders owning just 0.21% of the stock.

Morgan Stanley Direct Lending Fund (NYSE:MSDL - Get Free Report) had its price objective reduced by UBS Group from $18.00 to $16.00 in a report released on Friday,Benzinga reports. The firm currently has a "neutral" rating on the stock. UBS Group's target price would suggest a potential upside of 9.63% from the stock's previous close.

Several other research firms also recently commented on MSDL. Wells Fargo & Company decreased their price objective on Morgan Stanley Direct Lending Fund from $16.00 to $14.00 and set an "equal weight" rating on the stock in a report on Monday, March 2nd. Royal Bank Of Canada dropped their target price on Morgan Stanley Direct Lending Fund from $18.00 to $16.00 and set a "sector perform" rating for the company in a report on Thursday, March 5th. Keefe, Bruyette & Woods decreased their price target on Morgan Stanley Direct Lending Fund from $18.50 to $16.50 and set a "market perform" rating on the stock in a research note on Monday, March 2nd. JPMorgan Chase & Co. lowered their price objective on Morgan Stanley Direct Lending Fund from $16.50 to $14.00 and set a "neutral" rating for the company in a research report on Friday. Finally, Raymond James Financial reissued an "outperform" rating and set a $17.00 price objective on shares of Morgan Stanley Direct Lending Fund in a research note on Thursday, March 5th. One research analyst has rated the stock with a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $15.58.

Morgan Stanley Direct Lending Fund Trading Up 0.4%

Shares of Morgan Stanley Direct Lending Fund stock traded up $0.06 during trading on Friday, reaching $14.60. The company's stock had a trading volume of 856,541 shares, compared to its average volume of 871,817. Morgan Stanley Direct Lending Fund has a 52-week low of $14.25 and a 52-week high of $20.90. The company has a market cap of $1.25 billion, a price-to-earnings ratio of 10.43 and a beta of 0.34. The firm's 50-day moving average is $15.77 and its two-hundred day moving average is $16.64. The company has a quick ratio of 45.48, a current ratio of 45.48 and a debt-to-equity ratio of 1.19.

Morgan Stanley Direct Lending Fund (NYSE:MSDL - Get Free Report) last issued its earnings results on Thursday, February 26th. The company reported $0.49 EPS for the quarter, hitting analysts' consensus estimates of $0.49. Morgan Stanley Direct Lending Fund had a net margin of 30.73% and a return on equity of 9.88%. The company had revenue of $49.57 million for the quarter, compared to analysts' expectations of $97.30 million. On average, sell-side analysts anticipate that Morgan Stanley Direct Lending Fund will post 2.56 earnings per share for the current year.

Insider Transactions at Morgan Stanley Direct Lending Fund

In other Morgan Stanley Direct Lending Fund news, insider Jeff M. Day bought 5,000 shares of Morgan Stanley Direct Lending Fund stock in a transaction dated Thursday, March 5th. The shares were purchased at an average cost of $14.89 per share, with a total value of $74,450.00. Following the completion of the purchase, the insider owned 22,818 shares of the company's stock, valued at approximately $339,760.02. This represents a 28.06% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Michael Jr. Occi purchased 7,000 shares of the business's stock in a transaction that occurred on Monday, March 2nd. The stock was bought at an average price of $14.87 per share, for a total transaction of $104,090.00. Following the acquisition, the chief executive officer owned 28,500 shares of the company's stock, valued at $423,795. This represents a 32.56% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 0.21% of the stock is owned by insiders.

Hedge Funds Weigh In On Morgan Stanley Direct Lending Fund

Several institutional investors and hedge funds have recently added to or reduced their stakes in MSDL. Bartlett & CO. Wealth Management LLC purchased a new stake in Morgan Stanley Direct Lending Fund during the 3rd quarter valued at about $30,000. NewEdge Advisors LLC purchased a new position in Morgan Stanley Direct Lending Fund in the third quarter worth about $32,000. SHP Wealth Management bought a new position in shares of Morgan Stanley Direct Lending Fund in the fourth quarter worth approximately $39,000. DV Equities LLC bought a new stake in shares of Morgan Stanley Direct Lending Fund during the fourth quarter valued at approximately $41,000. Finally, Allworth Financial LP increased its position in shares of 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 valued at $49,000 after acquiring an additional 1,000 shares in the last quarter.

About Morgan Stanley Direct Lending Fund

Morgan Stanley Direct Lending Fund NYSE: MSDL is a closed-end management investment company that seeks to provide investors with attractive current income and the potential for capital appreciation. The fund primarily invests in senior secured loans and other debt instruments issued by middle-market companies. By focusing on floating-rate structures, it aims to offer a measure of protection against rising interest rates while generating regular cash distributions.

The fund's investment strategy centers on building a diversified portfolio of direct lending opportunities across a broad range of industries, including healthcare, business services, and industrials.

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