Sixth Street Specialty Lending (NYSE:TSLX) Issues Quarterly Earnings Results

Sixth Street Specialty Lending (NYSE:TSLX) released its earnings results on Tuesday, May 5th. The financial services provider reported $0.42 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.49 by ($0.07), Zacks reports. The business had revenue of $93.40 million for the quarter, compared to analyst estimates of $103.14 million. Sixth Street Specialty Lending had a net margin of 25.25% and a return on equity of 11.92%. During the same quarter in the previous year, the company posted $0.58 earnings per share.

Sixth Street Specialty Lending Stock Down 0.1%

NYSE:TSLX opened at $16.59 on Monday. The stock has a 50-day simple moving average of $17.86 and a 200 day simple moving average of $19.39. Sixth Street Specialty Lending has a 52-week low of $16.37 and a 52-week high of $25.17. The company has a market cap of $1.58 billion, a PE ratio of 14.43 and a beta of 0.60. The company has a debt-to-equity ratio of 1.17, a quick ratio of 3.39 and a current ratio of 3.39.

Sixth Street Specialty Lending Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th will be given a dividend of $0.42 per share. This is an increase from Sixth Street Specialty Lending’s previous quarterly dividend of $0.01. This represents a $1.68 annualized dividend and a dividend yield of 10.1%. The ex-dividend date of this dividend is Monday, June 15th. Sixth Street Specialty Lending’s payout ratio is currently 146.09%.

Wall Street Analyst Weigh In

TSLX has been the subject of a number of recent analyst reports. Truist Financial dropped their price objective on Sixth Street Specialty Lending from $22.00 to $20.00 and set a “buy” rating for the company in a report on Thursday, May 7th. Wells Fargo & Company reduced their target price on Sixth Street Specialty Lending from $20.00 to $19.00 and set an “overweight” rating on the stock in a report on Thursday, May 7th. Weiss Ratings lowered Sixth Street Specialty Lending from a “hold (c)” rating to a “hold (c-)” rating in a research report on Monday, May 18th. Citizens Jmp cut their price target on shares of Sixth Street Specialty Lending from $25.00 to $24.00 and set a “market outperform” rating on the stock in a research report on Wednesday, April 22nd. Finally, JPMorgan Chase & Co. cut their price target on shares of Sixth Street Specialty Lending from $18.50 to $17.50 and set a “neutral” rating on the stock in a research report on Thursday, May 7th. Five investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Sixth Street Specialty Lending currently has a consensus rating of “Moderate Buy” and a consensus price target of $19.83.

Insiders Place Their Bets

In other Sixth Street Specialty Lending news, VP Ross Anthony Bruck purchased 8,000 shares of the firm’s stock in a transaction dated Monday, May 11th. The stock was bought at an average cost of $17.76 per share, with a total value of $142,080.00. Following the purchase, the vice president directly owned 18,250 shares of the company’s stock, valued at $324,120. The trade was a 78.05% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. 3.83% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the business. Progeny 3 Inc. increased its stake in Sixth Street Specialty Lending by 1.0% in the 2nd quarter. Progeny 3 Inc. now owns 2,476,398 shares of the financial services provider’s stock valued at $58,963,000 after buying an additional 23,451 shares during the last quarter. Bank of Montreal Can boosted its stake in shares of Sixth Street Specialty Lending by 419.5% during the 4th quarter. Bank of Montreal Can now owns 2,284,920 shares of the financial services provider’s stock worth $49,628,000 after buying an additional 1,845,088 shares during the last quarter. UBS Group AG boosted its stake in shares of Sixth Street Specialty Lending by 11.0% during the 3rd quarter. UBS Group AG now owns 1,316,597 shares of the financial services provider’s stock worth $30,097,000 after buying an additional 130,586 shares during the last quarter. Wells Fargo & Company MN grew its holdings in shares of Sixth Street Specialty Lending by 3.7% in the 4th quarter. Wells Fargo & Company MN now owns 1,270,816 shares of the financial services provider’s stock valued at $27,602,000 after acquiring an additional 45,870 shares in the last quarter. Finally, Callodine Capital Management LP grew its holdings in shares of Sixth Street Specialty Lending by 26.5% in the 4th quarter. Callodine Capital Management LP now owns 1,101,992 shares of the financial services provider’s stock valued at $23,935,000 after acquiring an additional 230,559 shares in the last quarter. Institutional investors and hedge funds own 70.25% of the company’s stock.

Sixth Street Specialty Lending Company Profile

Sixth Street Specialty Lending Inc (NYSE: TSLX) is a closed-end, externally managed business development company that provides flexible debt financing solutions to middle-market companies. The fund primarily targets senior secured loans, unitranche facilities, mezzanine debt, second-lien financings and equity co-investment opportunities. By structuring tailored capital solutions, Sixth Street Specialty Lending seeks to support growth initiatives, recapitalizations and refinancings across a diverse set of industries, including technology, healthcare and business services.

As an affiliate of Sixth Street Partners, a global alternative investment firm, the company leverages the broader platform’s credit research, operational expertise and industry relationships.