Morgan Stanley Direct Lending Fund (NYSE:MSDL) Releases Earnings Results, Hits Estimates

Morgan Stanley Direct Lending Fund (NYSE:MSDL) posted its quarterly earnings data on Thursday. The company reported $0.49 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.49, Zacks reports. The business had revenue of $49.57 million during the quarter, compared to the consensus estimate of $97.30 million. Morgan Stanley Direct Lending Fund had a return on equity of 10.21% and a net margin of 35.92%.

Morgan Stanley Direct Lending Fund Stock Performance

MSDL traded down $0.67 on Friday, reaching $14.81. The company had a trading volume of 2,098,392 shares, compared to its average volume of 871,549. The company’s fifty day moving average is $16.15 and its 200 day moving average is $16.83. The company has a debt-to-equity ratio of 1.17, a quick ratio of 1.45 and a current ratio of 1.45. The stock has a market cap of $1.29 billion, a P/E ratio of 8.97 and a beta of 0.26. Morgan Stanley Direct Lending Fund has a fifty-two week low of $14.64 and a fifty-two week high of $20.90.

Morgan Stanley Direct Lending Fund Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, April 24th. Investors of record on Tuesday, March 31st will be paid a $0.45 dividend. The ex-dividend date is Tuesday, March 31st. This represents a $1.80 dividend on an annualized basis and a yield of 12.2%. Morgan Stanley Direct Lending Fund’s dividend payout ratio is 121.21%.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on the stock. Keefe, Bruyette & Woods decreased their price target on shares of Morgan Stanley Direct Lending Fund from $20.00 to $18.50 and set a “market perform” rating for the company in a research note on Monday, November 10th. Royal Bank Of Canada restated a “sector perform” rating and set a $18.00 target price (down from $19.00) on shares of Morgan Stanley Direct Lending Fund in a report on Wednesday, November 26th. Wells Fargo & Company reiterated an “equal weight” rating and issued a $16.00 price target (down from $17.00) on shares of Morgan Stanley Direct Lending Fund in a research note on Wednesday, January 7th. Zacks Research upgraded shares of Morgan Stanley Direct Lending Fund from a “strong sell” rating to a “hold” rating in a research note on Wednesday, November 12th. Finally, JPMorgan Chase & Co. lifted their target price on Morgan Stanley Direct Lending Fund from $16.00 to $16.50 and gave the company a “neutral” rating in a research report on Monday, November 10th. One research analyst has rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $17.58.

Hedge Funds Weigh In On Morgan Stanley Direct Lending Fund

A number of large investors have recently made changes to their positions in the company. Captrust Financial Advisors grew its holdings in Morgan Stanley Direct Lending Fund by 1.8% in the 2nd quarter. Captrust Financial Advisors now owns 49,345 shares of the company’s stock valued at $924,000 after buying an additional 880 shares in the last quarter. Ameriprise Financial Inc. grew its stake in shares of Morgan Stanley Direct Lending Fund by 2.4% in the second quarter. Ameriprise Financial Inc. now owns 43,585 shares of the company’s stock valued at $761,000 after acquiring an additional 1,021 shares in the last quarter. US Bancorp DE increased its position in Morgan Stanley Direct Lending Fund by 61.9% during the third quarter. US Bancorp DE now owns 3,707 shares of the company’s stock worth $60,000 after acquiring an additional 1,417 shares during the period. NewEdge Advisors LLC acquired a new stake in Morgan Stanley Direct Lending Fund in the 3rd quarter worth about $32,000. Finally, DV Equities LLC bought a new stake in Morgan Stanley Direct Lending Fund in the 4th quarter valued at about $41,000.

Morgan Stanley Direct Lending Fund Company Profile

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.