Morgan Stanley Direct Lending Fund (NYSE:MSDL) Announces Quarterly Earnings Results, Hits Expectations

Morgan Stanley Direct Lending Fund (NYSE:MSDL) announced its earnings results on Thursday. The company reported $0.49 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.49, Zacks reports. Morgan Stanley Direct Lending Fund had a net margin of 30.73% and a return on equity of 9.82%. The firm had revenue of $49.57 million during the quarter, compared to analyst estimates of $97.30 million.

Morgan Stanley Direct Lending Fund Trading Down 4.3%

Shares of MSDL stock traded down $0.67 during trading hours on Friday, reaching $14.81. 2,098,392 shares of the stock traded hands, compared to its average volume of 865,835. The company has a quick ratio of 1.45, a current ratio of 1.45 and a debt-to-equity ratio of 1.17. The firm has a market capitalization of $1.29 billion, a PE ratio of 10.58 and a beta of 0.26. Morgan Stanley Direct Lending Fund has a 1-year low of $14.64 and a 1-year high of $20.90. The business has a fifty day moving average price of $16.15 and a 200 day moving average price of $16.83.

Morgan Stanley Direct Lending Fund Cuts Dividend

The company also recently declared 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. The ex-dividend date is Tuesday, March 31st. This represents a $1.80 dividend on an annualized basis and a dividend yield of 12.2%. Morgan Stanley Direct Lending Fund’s payout ratio is currently 121.21%.

Institutional Trading of Morgan Stanley Direct Lending Fund

Large investors have recently added to or reduced their stakes in the company. Captrust Financial Advisors grew 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 acquiring an additional 880 shares in the last quarter. Ameriprise Financial Inc. boosted its position 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 purchasing an additional 1,021 shares during the last quarter. US Bancorp DE boosted 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 valued at $60,000 after purchasing an additional 1,417 shares during the last quarter. NewEdge Advisors LLC purchased a new position in Morgan Stanley Direct Lending Fund in the third quarter valued at about $32,000. Finally, DV Equities LLC acquired a new position in Morgan Stanley Direct Lending Fund in the 4th quarter worth about $41,000.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on MSDL shares. JPMorgan Chase & Co. raised their price objective on shares of Morgan Stanley Direct Lending Fund from $16.00 to $16.50 and gave the company a “neutral” rating in a research note on Monday, November 10th. Zacks Research upgraded 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 dropped their price objective on 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. Wells Fargo & Company reaffirmed 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. Finally, Royal Bank Of Canada reiterated a “sector perform” rating and issued a $18.00 price target (down from $19.00) on shares of Morgan Stanley Direct Lending Fund in a research report on Wednesday, November 26th. One research analyst has rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $17.58.

Key Headlines 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)

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.