Frank Bruce D, a director at Morgan Stanley (NYSE:MS) Direct Lending Fund (NYSE:MSDL), recently acquired 420 shares of the company's common stock. The purchase, made on November 11, 2024, was executed at an average price of $20.4954 per share, resulting in a total transaction value of $8,608. Following this acquisition, Bruce holds a total of 3,695 shares in the company. The shares were acquired through the Bruce Frank IRA, as noted in the filing.
In other recent news, Morgan Stanley Direct Lending Fund announced amendments to its credit agreement, extending the reinvestment period and the final maturity date, while reducing the applicable margin. BNP Paribas (OTC:BNPQY), the Administrative Agent, affirmed that these changes would enhance the fund's financial flexibility. Despite alterations to certain eligibility criteria and concentration limits, the core material terms of the BNP Funding Facility remain unchanged.
In addition to these adjustments, Morgan Stanley Direct Lending has seen revisions in analyst ratings and estimates. RBC Capital Markets revised its outlook on the company, lowering the price target from $23 to $22, but maintained an Outperform rating. This change followed the firm's second quarter performance review, highlighting its growth, portfolio expansion, and potential to offer an above-average dividend yield of around 12%-13% for the current year.
Concurrently, Raymond (NS:RYMD) James downgraded the stock from Outperform to Market Perform, citing a fair current valuation with limited potential for upside. This downgrade followed the firm's first-quarter report, which showed a net investment income of $0.63 per share, slightly below estimates. These developments represent recent shifts in the financial landscape for Morgan Stanley Direct Lending.
InvestingPro Insights
Frank Bruce D's recent acquisition of Morgan Stanley Direct Lending Fund (NYSE:MSDL) shares aligns with some intriguing financial metrics and insights from InvestingPro. Notably, MSDL boasts a substantial dividend yield of 10.02%, with the most recent ex-dividend date on November 4, 2024. This high yield is consistent with one of the InvestingPro Tips, which highlights that MSDL "pays a significant dividend to shareholders."
The stock's current price of $20.11 is relatively close to the fair value of $21 based on analyst targets, suggesting that Bruce's purchase at $20.4954 per share may be viewed as a strategic move. However, investors should note that MSDL is trading near its 52-week low, with the price at 82.96% of its 52-week high.
While the company offers an attractive dividend, InvestingPro Tips also caution that MSDL suffers from weak gross profit margins and its valuation implies a poor free cash flow yield. These factors may explain the stock's recent performance, with a modest 3.8% return over the past three months and a slight decline of 5.1% over six months.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and metrics beyond those mentioned here. The platform provides a total of 13 tips for MSDL, offering a deeper understanding of the company's financial health and market position.
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