Morgan Stanley Direct Lending Fund (NYSE:MSDL) Sets New 52-Week Low – Should You Sell?

Morgan Stanley Direct Lending Fund (NYSE:MSDL) reached a new 52-week low during trading on Thursday . The stock traded as low as $13.66 and last traded at $13.7790, with a volume of 28666 shares changing hands. The stock had previously closed at $13.82.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on MSDL. JPMorgan Chase & Co. dropped their price target on shares of Morgan Stanley Direct Lending Fund from $16.50 to $14.00 and set a “neutral” rating on the stock in a research note on Friday, March 13th. Keefe, Bruyette & Woods reduced their price objective on shares of Morgan Stanley Direct Lending Fund from $18.50 to $16.50 and set a “market perform” rating for the company in a research note 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 on the stock in a research report on Thursday, March 5th. Wells Fargo & Company cut their price target on Morgan Stanley Direct Lending Fund from $16.00 to $14.00 and set an “equal weight” rating for the company in a report on Monday, March 2nd. Finally, Raymond James Financial reaffirmed 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 equities research analyst has rated the stock with a Buy rating and six have given a Hold rating to the company. According to 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 Stock Up 0.4%

The company has a 50 day moving average of $15.17 and a 200-day moving average of $16.29. The company has a debt-to-equity ratio of 1.19, a current ratio of 1.59 and a quick ratio of 1.59. The company has a market cap of $1.19 billion, a P/E ratio of 9.90 and a beta of 0.34.

Morgan Stanley Direct Lending Fund (NYSE:MSDL) last released its quarterly earnings results on Thursday, February 26th. The company reported $0.49 earnings per share for the quarter, meeting the consensus estimate of $0.49. The firm had revenue of $49.57 million for the quarter, compared to analysts’ expectations of $97.30 million. Morgan Stanley Direct Lending Fund had a return on equity of 9.88% and a net margin of 30.73%. On average, equities analysts predict that Morgan Stanley Direct Lending Fund will post 2.56 earnings per share for the current year.

Morgan Stanley Direct Lending Fund Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, April 24th. Stockholders of record on Tuesday, March 31st will be issued a dividend of $0.45 per share. This represents a $1.80 dividend on an annualized basis and a dividend yield of 13.0%. The ex-dividend date of this dividend is Tuesday, March 31st. Morgan Stanley Direct Lending Fund’s payout ratio is currently 128.57%.

Insider Buying and Selling at Morgan Stanley Direct Lending Fund

In related news, CEO Michael Jr. Occi bought 7,000 shares of the business’s stock in a transaction that occurred on Monday, March 2nd. The stock was bought at an average cost of $14.87 per share, for a total transaction of $104,090.00. Following the completion of the transaction, the chief executive officer owned 28,500 shares of the company’s stock, valued at approximately $423,795. The trade was a 32.56% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Jeff M. Day bought 5,000 shares of Morgan Stanley Direct Lending Fund stock in a transaction that occurred on Thursday, March 5th. The stock was purchased at an average cost of $14.89 per share, for a total transaction of $74,450.00. Following the purchase, the insider owned 22,818 shares of the company’s stock, valued at $339,760.02. The trade was a 28.06% 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 currently owned by insiders.

Institutional Trading of Morgan Stanley Direct Lending Fund

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Bartlett & CO. Wealth Management LLC bought a new position in Morgan Stanley Direct Lending Fund during the third quarter valued at approximately $30,000. NewEdge Advisors LLC purchased a new stake in shares of Morgan Stanley Direct Lending Fund in the 3rd quarter valued at $32,000. SHP Wealth Management bought a new position in shares of Morgan Stanley Direct Lending Fund during the 4th quarter valued at $39,000. DV Equities LLC bought a new position in shares of Morgan Stanley Direct Lending Fund during the 4th quarter valued at $41,000. Finally, Steward Partners Investment Advisory LLC boosted its position in Morgan Stanley Direct Lending Fund by 225.0% during the second quarter. Steward Partners Investment Advisory LLC now owns 3,250 shares of the company’s stock valued at $61,000 after buying an additional 2,250 shares during the period.

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.