Lazard Asset Management LLC Makes New $2.81 Million Investment in Sixth Street Specialty Lending, Inc. $TSLX

Key Points

• Lazard Asset Management initiated a $2.81 million position in Sixth Street Specialty Lending, while several other institutional investors significantly increased their holdings. Institutional investors and hedge funds collectively own 70.25% of the company.
• Sixth Street Specialty Lending reported quarterly EPS of $0.42, below the $0.49 analyst consensus, while revenue of $93.4 million also missed estimates. Shares opened at $17.19, near the lower end of their 52-week range.
• The company raised its quarterly dividend to $0.42 per share, representing a 9.8% annualized yield, although its payout ratio is elevated at 146.09%. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $19.67.

Lazard Asset Management LLC bought a new position in shares of Sixth Street Specialty Lending, Inc. (NYSE:TSLX - Free Report) during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm bought 152,856 shares of the financial services provider's stock, valued at approximately $2,809,000. Lazard Asset Management LLC owned 0.16% of Sixth Street Specialty Lending at the end of the most recent quarter.

Several other hedge funds have also added to or reduced their stakes in TSLX. Quantum Portfolio Management LLC bought a new position in Sixth Street Specialty Lending during the first quarter worth about $273,434,000. Strs Ohio boosted its holdings in Sixth Street Specialty Lending by 101.8% in the 1st quarter. Strs Ohio now owns 4,347,710 shares of the financial services provider's stock valued at $79,911,000 after purchasing an additional 2,193,551 shares during the period. Bank of Montreal Can boosted its holdings in Sixth Street Specialty Lending by 419.5% in the 4th quarter. Bank of Montreal Can now owns 2,284,920 shares of the financial services provider's stock valued at $49,628,000 after purchasing an additional 1,845,088 shares during the period. OMERS ADMINISTRATION Corp grew its position in shares of Sixth Street Specialty Lending by 318.2% during the 1st quarter. OMERS ADMINISTRATION Corp now owns 1,961,813 shares of the financial services provider's stock worth $36,058,000 after purchasing an additional 1,492,704 shares in the last quarter. Finally, Goldman Sachs Group Inc. grew its position in shares of Sixth Street Specialty Lending by 105.0% during the 4th quarter. Goldman Sachs Group Inc. now owns 624,196 shares of the financial services provider's stock worth $13,558,000 after purchasing an additional 319,665 shares in the last quarter. 70.25% of the stock is owned by institutional investors and hedge funds.

Sixth Street Specialty Lending Trading Down 0.3%

Shares of NYSE TSLX opened at $17.19 on Friday. The firm has a 50 day moving average price of $17.09 and a two-hundred day moving average price of $18.40. The stock has a market cap of $1.63 billion, a P/E ratio of 14.95 and a beta of 0.59. Sixth Street Specialty Lending, Inc. has a 52-week low of $16.04 and a 52-week high of $24.79. 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 (NYSE:TSLX - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The financial services provider reported $0.42 EPS for the quarter, missing analysts' consensus estimates of $0.49 by ($0.07). Sixth Street Specialty Lending had a return on equity of 11.92% and a net margin of 25.25%.The business had revenue of $93.40 million for the quarter, compared to analyst estimates of $103.14 million. During the same quarter last year, the firm posted $0.58 EPS. As a group, equities analysts forecast that Sixth Street Specialty Lending, Inc. will post 1.71 EPS for the current year.

Sixth Street Specialty Lending Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 15th were given a dividend of $0.42 per share. The ex-dividend date of this dividend was Monday, June 15th. This represents a $1.68 annualized dividend and a yield of 9.8%. This is an increase from Sixth Street Specialty Lending's previous quarterly dividend of $0.01. Sixth Street Specialty Lending's dividend payout ratio is 146.09%.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on the company. Zacks Research raised Sixth Street Specialty Lending from a "strong sell" rating to a "hold" rating in a report on Tuesday, July 7th. Keefe, Bruyette & Woods decreased their price target on Sixth Street Specialty Lending from $21.00 to $18.50 and set an "outperform" rating on the stock in a research report on Thursday, May 7th. Citizens Jmp dropped their price target on Sixth Street Specialty Lending from $25.00 to $24.00 and set a "market outperform" rating for the company in a research note on Wednesday, April 22nd. Weiss Ratings cut shares of Sixth Street Specialty Lending from a "hold (c)" rating to a "hold (c-)" rating in a research report on Monday, May 18th. Finally, Truist Financial reduced their price objective on shares of Sixth Street Specialty Lending from $22.00 to $20.00 and set a "buy" rating on the stock in a research note on Thursday, May 7th. Five research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $19.67.

Insider Buying and Selling

In related news, VP Ross Anthony Bruck bought 8,000 shares of the business's stock in a transaction on Monday, May 11th. The shares were purchased at an average cost of $17.76 per share, with a total value of $142,080.00. Following the acquisition, the vice president owned 18,250 shares of the company's stock, valued at $324,120. This represents a 78.05% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 3.83% of the company's stock.

About Sixth Street Specialty Lending

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.

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