Wells Fargo Lowers Price Target for Morgan Stanley Direct Lending

Wells Fargo & Company has adjusted its price target for Morgan Stanley Direct Lending (NYSE:MSDL) from $21.00 to $20.00, as noted in a research report published on Monday. They have maintained an "equal weight" rating for the stock, which indicates that the stock is expected to perform in line with market expectations. This new price target suggests a potential decrease of approximately 2.53% from the company's last closing price.

Performance Overview of Morgan Stanley Direct Lending

On the day of the report, MSDL shares saw a slight increase of $0.28, reaching a trading price of $20.52. The trading volume for the day was recorded at 103,722 shares, significantly lower than its average volume of 655,780 shares. The stock's fifty-day simple moving average stands at $20.87, while its two-hundred-day simple moving average is $20.48. Currently, the company has a market capitalization of $1.82 billion and a price-to-earnings (P/E) ratio of 8.05. Over the past year, Morgan Stanley Direct Lending's stock has hit a low of $19.28 and a high of $24.18.

Recent Earnings Results

In its latest quarterly earnings report released on February 27th, Morgan Stanley Direct Lending reported earnings per share of $0.57. This was below analysts' expectations, which had anticipated an EPS of $0.63, resulting in a miss of $0.06. The company generated revenue of $103.00 million for the quarter, also falling short of the estimated $107.02 million. Notably, the company reported a net margin of 54.89% and a return on equity of 12.69%. Analysts project that Morgan Stanley Direct Lending will achieve an EPS of 2.56 for the current fiscal year.

Changes in Institutional Positions

Recently, various hedge funds have adjusted their positions in Morgan Stanley Direct Lending. For instance, Comerica Bank increased its holdings by 100% in the fourth quarter, acquiring a total of 2,568 shares valued at approximately $53,000 after adding 1,284 shares. Additionally, Muzinich & Co. Inc. made a new investment in Morgan Stanley Direct Lending worth around $68,000 during the third quarter. Other notable changes include RE Dickinson Investment Advisors LLC, which purchased new shares worth about $84,000, and BI Asset Management Fondsmaeglerselskab A S, which invested approximately $103,000 during the same period. Furthermore, BNP Paribas Financial Markets has significantly boosted its stake by 515.5%, bringing its total to 6,771 shares, worth about $140,000.

About Morgan Stanley Direct Lending

Morgan Stanley Direct Lending is classified as a business development company. As a non-diversified, externally managed specialty finance firm, it primarily focuses on providing loans to middle-market companies. The company is headquartered in New York.

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