Sixth Street Specialty Lending, Inc. (TSLX) - What Are Researchers Thinking About This Stock?

Key Points

• Analyst sentiment is moderately positive: Eight analysts give Sixth Street Specialty Lending a consensus “Moderate Buy” rating, with five buys and three holds. The average 12-month price target is $19.83.
• Quarterly results exceeded expectations: The company reported adjusted earnings of $0.43 per share and revenue of $97.84 million, surpassing analyst estimates of $0.42 per share and $95.28 million.
• The stock offers a high dividend yield: Sixth Street Specialty Lending pays a quarterly dividend of $0.42 per share, equivalent to an annualized $1.68 dividend and a 9.5% yield. Institutional investors own approximately 70.25% of the company.

Sixth Street Specialty Lending, Inc. (NYSE:TSLX - Get Free Report) has earned a consensus rating of "Moderate Buy" from the eight analysts that are presently covering the firm, MarketBeat.com reports. Three equities research analysts have rated the stock with a hold recommendation and five have issued a buy recommendation on the company. The average 12-month target price among brokers that have issued a report on the stock in the last year is $19.83.

A number of analysts recently issued reports on the company. Keefe, Bruyette & Woods lifted their target price on Sixth Street Specialty Lending from $18.50 to $19.50 and gave the company an "outperform" rating in a research report on Monday, August 10th. Wall Street Zen upgraded Sixth Street Specialty Lending from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th. Weiss Ratings downgraded Sixth Street Specialty Lending from a "hold (c)" rating to a "hold (c-)" rating in a report on Thursday, October 8th. Finally, Zacks Research upgraded Sixth Street Specialty Lending from a "strong sell" rating to a "hold" rating in a report on Tuesday, July 7th.

Sixth Street Specialty Lending Stock Performance

TSLX opened at $17.62 on Monday. The company has a market cap of $1.67 billion, a PE ratio of 18.55 and a beta of 0.62. The company has a debt-to-equity ratio of 1.24, a quick ratio of 9.83 and a current ratio of 9.83. Sixth Street Specialty Lending has a 52-week low of $16.04 and a 52-week high of $22.84. The stock has a 50-day moving average of $17.87 and a 200-day moving average of $18.26.

Sixth Street Specialty Lending (NYSE:TSLX - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The financial services provider reported $0.43 earnings per share for the quarter, beating the consensus estimate of $0.42 by $0.01. Sixth Street Specialty Lending had a return on equity of 11.33% and a net margin of 21.79%. The company had revenue of $97.84 million for the quarter, compared to analyst estimates of $95.28 million. During the same period in the prior year, the company posted $0.56 EPS. As a group, equities research analysts forecast that Sixth Street Specialty Lending will post 1.74 earnings per share for the current fiscal year.

Sixth Street Specialty Lending Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th were paid a dividend of $0.42 per share. This represents a $1.68 dividend on an annualized basis and a dividend yield of 9.5%. The ex-dividend date was Tuesday, September 15th. Sixth Street Specialty Lending's payout ratio is presently 176.84%.

Institutional Investors Weigh In On Sixth Street Specialty Lending

A number of large investors have recently added to or reduced their stakes in TSLX. Latitude Advisors LLC purchased a new position in shares of Sixth Street Specialty Lending in the 3rd quarter worth $39,000. Burk Holdings LLC purchased a new position in shares of Sixth Street Specialty Lending during the second quarter worth $51,000. Fifth Third Bancorp acquired a new stake in Sixth Street Specialty Lending in the first quarter valued at approximately $63,000. Frazier Financial Advisors LLC acquired a new position in Sixth Street Specialty Lending during the second quarter worth about $83,000. Finally, Northwestern Mutual Wealth Management Co. purchased a new stake in shares of Sixth Street Specialty Lending in the 2nd quarter valued at approximately $96,000. Institutional investors own 70.25% of the company's stock.

Sixth Street Specialty Lending Company Profile

Sixth Street Specialty Lending, Inc is a business development company (BDC) that provides financing to middle-market companies. The company primarily invests in privately negotiated debt and equity investments, with a focus on supporting businesses that may have limited access to traditional bank financing.

Its investment portfolio generally includes first-lien and second-lien loans, unitranche financing, mezzanine debt, and related equity investments. Sixth Street Specialty Lending seeks to generate income through interest payments and other investment returns while providing customized financing solutions for acquisitions, recapitalizations, refinancings, growth initiatives, and other corporate purposes.

The company was formed in 2011 and is externally managed by an affiliate of Sixth Street, an investment firm focused on credit and other asset classes.

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