Morgan Stanley Direct Lending Fund (NYSE:MSDL) Short Interest Up 170.2% in February

Morgan Stanley Direct Lending Fund (NYSE:MSDL) was the target of a large increase in short interest in February. As of February 13th, there was short interest totaling 1,574,458 shares, an increase of 170.2% from the January 29th total of 582,617 shares. Currently, 1.8% of the company’s stock are short sold. Based on an average daily volume of 1,096,089 shares, the days-to-cover ratio is presently 1.4 days. Based on an average daily volume of 1,096,089 shares, the days-to-cover ratio is presently 1.4 days. Currently, 1.8% of the company’s stock are short sold.

Key Stories Impacting Morgan Stanley Direct Lending Fund

Here are the key news stories impacting Morgan Stanley Direct Lending Fund this week:

• Positive Sentiment: Declared a $0.45 quarterly dividend (annualized yield ~11.9%); record date/ex-dividend date March 31 and payable April 24 — supports income-focused demand for the stock. Morgan Stanley Direct Lending Fund Announces December 31, 2025 Financial Results and Declares First Quarter 2026 Regular Dividend of $0.45 per Share
• Neutral Sentiment: Reported Q4 EPS of $0.49, in line with consensus — meeting expectations limits downside from headline EPS misses. MSDL Q4 Earnings Meet Estimates (Zacks)
• Neutral Sentiment: Management commentary from the Q4 earnings call is available (transcript) and will be monitored for details on portfolio performance, NAV drivers and credit quality — useful for assessing forward income stability. MSDL Q4 2025 Earnings Call Transcript (Seeking Alpha)
• Neutral Sentiment: Analysts had been focused on Q4 after a Q3 miss; the quarter’s mixed results keep that scrutiny active as investors look for signs of durable earnings and portfolio stability. Earnings in Focus After Q3 Miss (Investing.com)
• Negative Sentiment: Revenue came in far below expectations — reported $49.6M vs. analyst expectations near $97.3M — and EPS declined from $0.57 a year ago to $0.49, which likely explains the downward pressure on the share price despite the dividend. MSDL Earnings Summary (MarketBeat)

Morgan Stanley Direct Lending Fund Trading Down 4.3%

NYSE:MSDL opened at $14.81 on Friday. The company has a market cap of $1.29 billion, a PE ratio of 10.58 and a beta of 0.26. The company has a current ratio of 1.45, a quick ratio of 1.45 and a debt-to-equity ratio of 1.17. The company has a 50 day simple moving average of $16.15 and a two-hundred day simple moving average of $16.82. Morgan Stanley Direct Lending Fund has a 12 month low of $14.64 and a 12 month high of $20.90.

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. Morgan Stanley Direct Lending Fund had a return on equity of 9.82% and a net margin of 30.73%.The firm had revenue of $49.57 million for the quarter, compared to analysts’ expectations of $97.30 million. Research analysts forecast 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 firm also recently declared a quarterly dividend, which will be paid on Friday, April 24th. Shareholders of record on Tuesday, March 31st will be given a $0.45 dividend. The ex-dividend date is Tuesday, March 31st. This represents a $1.80 annualized dividend and a yield of 12.2%. Morgan Stanley Direct Lending Fund’s dividend payout ratio (DPR) is presently 121.21%.

Institutional Investors Weigh In On Morgan Stanley Direct Lending Fund

Several hedge funds and other institutional investors have recently modified their holdings of MSDL. Royal Bank of Canada lifted its position in Morgan Stanley Direct Lending Fund by 53.2% during the first quarter. Royal Bank of Canada now owns 155,232 shares of the company’s stock valued at $3,098,000 after purchasing an additional 53,902 shares in the last quarter. Millennium Management LLC raised its stake in Morgan Stanley Direct Lending Fund by 682.5% during the 1st quarter. Millennium Management LLC now owns 198,684 shares of the company’s stock worth $3,966,000 after acquiring an additional 173,292 shares during the period. Sumitomo Mitsui Trust Group Inc. lifted its holdings in Morgan Stanley Direct Lending Fund by 85.1% during the second quarter. Sumitomo Mitsui Trust Group Inc. now owns 370,759 shares of the company’s stock valued at $6,941,000 after purchasing an additional 170,467 shares in the last quarter. Envestnet Asset Management Inc. bought a new position in shares of Morgan Stanley Direct Lending Fund in the second quarter worth approximately $342,000. Finally, Muzinich & Co. Inc. boosted its position in shares of Morgan Stanley Direct Lending Fund by 114.2% in the second quarter. Muzinich & Co. Inc. now owns 455,631 shares of the company’s stock worth $8,529,000 after purchasing an additional 242,931 shares during the period.

Analyst Ratings Changes

MSDL has been the topic of several analyst reports. Royal Bank Of Canada reiterated a “sector perform” rating and issued a $18.00 target price (down from $19.00) on shares of Morgan Stanley Direct Lending Fund in a research note on Wednesday, November 26th. JPMorgan Chase & Co. upped their price objective 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. Wells Fargo & Company reiterated an “equal weight” rating and set a $16.00 target price (down from $17.00) on shares of Morgan Stanley Direct Lending Fund in a research note on Wednesday, January 7th. Keefe, Bruyette & Woods decreased their price target on 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. Finally, Zacks Research raised Morgan Stanley Direct Lending Fund from a “strong sell” rating to a “hold” rating in a report on Wednesday, November 12th. One analyst has rated the stock with a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $17.58.

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.