Keefe, Bruyette & Woods Cuts Morgan Stanley Direct Lending Fund (NYSE:MSDL) Price Target to $16.00

Morgan Stanley Direct Lending Fund (NYSE:MSDL) had its price objective trimmed by Keefe, Bruyette & Woods from $16.50 to $16.00 in a report released on Thursday,Benzinga reports. The firm currently has a market perform rating on the stock.

A number of other research firms have also recently issued reports on MSDL. Raymond James Financial reiterated an “outperform” rating and set a $17.00 target price on shares of Morgan Stanley Direct Lending Fund in a report on Thursday, March 5th. Wells Fargo & Company lowered their target price 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. JPMorgan Chase & Co. lowered their target price on Morgan Stanley Direct Lending Fund from $16.50 to $14.00 and set a “neutral” rating for the company in a report on Friday, March 13th. UBS Group lowered their target price on Morgan Stanley Direct Lending Fund from $18.00 to $16.00 and set a “neutral” rating for the company in a report on Friday, March 13th. Finally, Royal Bank Of Canada lowered 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. One investment analyst has rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Morgan Stanley Direct Lending Fund has an average rating of “Hold” and a consensus price target of $15.50.

Morgan Stanley Direct Lending Fund Price Performance

MSDL opened at $15.37 on Thursday. The company has a fifty day simple moving average of $14.86 and a 200 day simple moving average of $16.07. The stock has a market cap of $1.32 billion, a P/E ratio of 10.98 and a beta of 0.35. The company has a quick ratio of 1.59, a current ratio of 1.59 and a debt-to-equity ratio of 1.19. Morgan Stanley Direct Lending Fund has a 12 month low of $13.66 and a 12 month high of $20.00.

Morgan Stanley Direct Lending Fund (NYSE:MSDL) last released its earnings results on Thursday, February 26th. The company reported $0.49 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.49. The firm had revenue of $49.57 million during 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, research analysts expect that Morgan Stanley Direct Lending Fund will post 2.56 EPS 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 $0.45 dividend. The ex-dividend date is Tuesday, March 31st. This represents a $1.80 annualized dividend and a dividend yield of 11.7%. Morgan Stanley Direct Lending Fund’s dividend payout ratio (DPR) is presently 128.57%.

Insider Activity

In related news, insider Jeff M. Day acquired 5,000 shares of the firm’s stock in a transaction dated Thursday, March 5th. The stock was bought at an average price of $14.89 per share, for a total transaction of $74,450.00. Following the acquisition, the insider directly owned 22,818 shares of the company’s stock, valued at approximately $339,760.02. The trade was a 28.06% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Michael Jr. Occi acquired 7,000 shares of the firm’s stock in a transaction dated Monday, March 2nd. The stock was bought at an average price of $14.87 per share, with a total value of $104,090.00. Following the acquisition, the chief executive officer directly owned 28,500 shares in the company, valued at $423,795. This represents a 32.56% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 0.21% of the stock is owned by company insiders.

Hedge Funds Weigh In On Morgan Stanley Direct Lending Fund

Hedge funds have recently modified their holdings of the stock. Bartlett & CO. Wealth Management LLC bought a new position in shares of Morgan Stanley Direct Lending Fund in the 3rd quarter valued at about $30,000. NewEdge Advisors LLC bought a new position in shares of Morgan Stanley Direct Lending Fund in the 3rd quarter valued at about $32,000. SHP Wealth Management bought a new position in shares of Morgan Stanley Direct Lending Fund in the 4th quarter valued at about $39,000. DV Equities LLC bought a new position in Morgan Stanley Direct Lending Fund during the fourth quarter worth about $41,000. Finally, Ameritas Advisory Services LLC grew its holdings in Morgan Stanley Direct Lending Fund by 53.3% during the third quarter. Ameritas Advisory Services LLC now owns 3,388 shares of the company’s stock worth $54,000 after purchasing an additional 1,178 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.