Morgan Stanley Direct Lending Fund Hits New 52-Week Low at $17.10

Morgan Stanley Direct Lending Fund has reached a new 52-week low, trading at USD 17.10 as of September 23, 2025. This significant decline reflects a challenging year for the small-cap finance company, which has seen its stock price drop by 24.37% over the past year, contrasting sharply with the S&P 500's performance of 17.38% during the same period.
The fund's financial metrics reveal a price-to-earnings (P/E) ratio of 9.00, indicating a potentially attractive valuation compared to its industry peers. However, the company has faced notable declines in profitability, with pre-tax profit and net profit both falling by 38.87% in the most recent quarter. The return on equity stands at 9.53%, while the price-to-book ratio is at 0.87, suggesting that the stock may be undervalued relative to its assets.

Despite these challenges, institutional holdings remain robust at 40.89%, reflecting confidence from larger investors who have increased their stakes by 6.07% in the last quarter. The stock's performance has consistently lagged behind the S&P 500 over the past three years, highlighting ongoing difficulties in achieving growth.