FJ Capital Management LLC Makes New Investment in Sixth Street Specialty Lending, Inc. $TSLX

Key Points

• FJ Capital Management LLC invested approximately $804,000 in Sixth Street Specialty Lending, acquiring 35,944 shares of the company in the first quarter.
• Wall Street analysts are optimistic about Sixth Street Specialty Lending, with multiple firms raising their price targets and assigning a consensus "Buy" rating.
• The company recently reported better-than-expected earnings of $0.56 EPS for the quarter, surpassing analysts' estimates along with a revenue of $115 million.

FJ Capital Management LLC bought a new position in shares of Sixth Street Specialty Lending, Inc. (NYSE:TSLX - Free Report) during the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor bought 35,944 shares of the financial services provider's stock, valued at approximately $804,000.

Several other hedge funds have also recently bought and sold shares of TSLX. Ameriflex Group Inc. acquired a new stake in shares of Sixth Street Specialty Lending in the fourth quarter valued at about $27,000. AdvisorNet Financial Inc acquired a new stake in Sixth Street Specialty Lending during the first quarter worth about $40,000. Rossby Financial LCC acquired a new stake in Sixth Street Specialty Lending during the first quarter worth about $62,000. Redmont Wealth Advisors LLC acquired a new stake in Sixth Street Specialty Lending during the first quarter worth about $97,000. Finally, SVB Wealth LLC acquired a new stake in Sixth Street Specialty Lending during the first quarter worth about $107,000. 70.25% of the stock is owned by institutional investors and hedge funds.

Sixth Street Specialty Lending Trading Down 0.7%

TSLX stock traded down $0.18 during trading on Friday, hitting $24.60. The company had a trading volume of 291,648 shares, compared to its average volume of 337,807. The company has a quick ratio of 3.79, a current ratio of 3.79 and a debt-to-equity ratio of 1.07. The firm has a 50-day moving average price of $24.23 and a 200-day moving average price of $22.83. Sixth Street Specialty Lending, Inc. has a 12 month low of $18.58 and a 12 month high of $25.17. The stock has a market cap of $2.32 billion, a price-to-earnings ratio of 12.24 and a beta of 0.85.

Sixth Street Specialty Lending (NYSE:TSLX - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The financial services provider reported $0.56 earnings per share for the quarter, topping the consensus estimate of $0.53 by $0.03. Sixth Street Specialty Lending had a net margin of 39.56% and a return on equity of 13.47%. The firm had revenue of $115.00 million during the quarter, compared to analysts' expectations of $110.42 million. During the same quarter in the previous year, the company posted $0.58 EPS. As a group, analysts predict that Sixth Street Specialty Lending, Inc. will post 2.19 earnings per share for the current year.

Sixth Street Specialty Lending Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Monday, September 15th will be given a $0.05 dividend. This represents a $0.20 annualized dividend and a yield of 0.8%. The ex-dividend date is Monday, September 15th. Sixth Street Specialty Lending's payout ratio is 91.54%.

Wall Street Analyst Weigh In

A number of research analysts have commented on the stock. B. Riley initiated coverage on shares of Sixth Street Specialty Lending in a research note on Tuesday, May 13th. They set a "buy" rating and a $23.00 price target for the company. JMP Securities lifted their target price on shares of Sixth Street Specialty Lending from $24.00 to $25.00 and gave the company a "market outperform" rating in a research note on Wednesday, August 6th. Finally, Wells Fargo & Company lifted their target price on shares of Sixth Street Specialty Lending from $21.00 to $24.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Buy" and an average target price of $23.28.

Sixth Street Specialty Lending Profile

Sixth Street Specialty Lending, Inc NYSE: TSLX is a business development company. The fund provides senior secured loans (first-lien, second-lien, and unitranche), unsecured loans, mezzanine debt, and investments in corporate bonds and equity securities and structured products, non-control structured equity, and common equity with a focus on co-investments for organic growth, acquisitions, market or product expansion, restructuring initiatives, recapitalizations, and refinancing.