Morgan Stanley Direct Lending Fund (NYSE:MSDL) Sees Large Growth in Short Interest

Morgan Stanley Direct Lending Fund (NYSE:MSDL) was the target of a significant increase in short interest in the month of December. As of December 31st, there was short interest totaling 676,194 shares, an increase of 28.4% from the December 15th total of 526,430 shares. Currently, 0.8% of the company’s stock are short sold. Based on an average daily volume of 1,022,815 shares, the days-to-cover ratio is presently 0.7 days. Based on an average daily volume of 1,022,815 shares, the days-to-cover ratio is presently 0.7 days. Currently, 0.8% of the company’s stock are short sold.

Morgan Stanley Direct Lending Fund Price Performance

NYSE:MSDL traded down $0.30 during trading hours on Friday, hitting $16.56. 415,668 shares of the stock traded hands, compared to its average volume of 891,726. The company has a market cap of $1.44 billion, a price-to-earnings ratio of 10.03 and a beta of 0.26. Morgan Stanley Direct Lending Fund has a 1 year low of $15.70 and a 1 year high of $21.75. The stock has a 50 day moving average price of $16.91 and a 200 day moving average price of $17.48. The company has a quick ratio of 1.45, a current ratio of 1.45 and a debt-to-equity ratio of 1.17.

Morgan Stanley Direct Lending Fund (NYSE:MSDL) last announced its quarterly earnings data on Thursday, November 6th. The company reported $0.50 EPS for the quarter, beating the consensus estimate of $0.49 by $0.01. Morgan Stanley Direct Lending Fund had a net margin of 35.92% and a return on equity of 10.21%. The firm had revenue of $99.72 million for the quarter, compared to the consensus estimate of $98.55 million. Sell-side analysts forecast that Morgan Stanley Direct Lending Fund will post 2.56 EPS for the current fiscal year.

Morgan Stanley Direct Lending Fund Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, January 23rd. Shareholders of record on Wednesday, December 31st will be paid a $0.50 dividend. This represents a $2.00 annualized dividend and a yield of 12.1%. The ex-dividend date is Wednesday, December 31st. Morgan Stanley Direct Lending Fund’s dividend payout ratio is presently 121.21%.

Analysts Set New Price Targets

Several analysts have commented on the company. Raymond James Financial set a $18.50 target price on Morgan Stanley Direct Lending Fund and gave the company an “outperform” rating in a research note on Tuesday, October 7th. Royal Bank Of Canada reaffirmed a “sector perform” rating and issued a $18.00 price objective (down previously from $19.00) on shares of Morgan Stanley Direct Lending Fund in a report on Wednesday, November 26th. Zacks Research raised shares of Morgan Stanley Direct Lending Fund from a “strong sell” rating to a “hold” rating in a research report on Wednesday, November 12th. Keefe, Bruyette & Woods lowered their price objective on shares of Morgan Stanley Direct Lending Fund from $20.00 to $18.50 and set a “market perform” rating on the stock in a research note on Monday, November 10th. Finally, Wells Fargo & Company reissued an “equal weight” rating and issued a $16.00 price objective (down previously from $17.00) on shares of Morgan Stanley Direct Lending Fund in a report on Wednesday, January 7th. One research analyst has rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $17.58.

Insider Buying and Selling at Morgan Stanley Direct Lending Fund

In other Morgan Stanley Direct Lending Fund news, CIO Ashwin Krishnan bought 3,000 shares of the stock in a transaction dated Tuesday, November 11th. The stock was purchased at an average cost of $16.72 per share, for a total transaction of $50,160.00. Following the completion of the acquisition, the executive owned 3,000 shares of the company’s stock, valued at approximately $50,160. This trade represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Corporate insiders own 0.21% of the company’s stock.

Institutional Trading of Morgan Stanley Direct Lending Fund

A number of institutional investors and hedge funds have recently bought and sold shares of MSDL. Captrust Financial Advisors boosted its holdings in shares of Morgan Stanley Direct Lending Fund by 1.8% during the 2nd quarter. Captrust Financial Advisors now owns 49,345 shares of the company’s stock valued at $924,000 after purchasing an additional 880 shares during the last quarter. AdvisorNet Financial Inc lifted its position in shares of Morgan Stanley Direct Lending Fund by 27.3% in the second quarter. AdvisorNet Financial Inc now owns 4,200 shares of the company’s stock worth $79,000 after buying an additional 900 shares in the last quarter. Allworth Financial LP boosted its stake in 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 buying an additional 1,000 shares during the last quarter. Ameriprise Financial Inc. boosted its stake in Morgan Stanley Direct Lending Fund by 2.4% during the second quarter. Ameriprise Financial Inc. now owns 43,585 shares of the company’s stock valued at $761,000 after buying an additional 1,021 shares during the last quarter. Finally, Ameritas Advisory Services LLC grew its holdings in Morgan Stanley Direct Lending Fund by 53.3% during the 3rd quarter. Ameritas Advisory Services LLC now owns 3,388 shares of the company’s stock valued at $54,000 after buying an additional 1,178 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.