OMERS ADMINISTRATION Corp Increases Holdings in Sixth Street Specialty Lending, Inc. $TSLX

Key Points

• OMERS ADMINISTRATION Corp boosted its stake in Sixth Street Specialty Lending by 318.2% in Q1, ending with 1.96 million shares worth about $36.1 million. Institutional investors still own a large majority of the stock, at 70.25%.
• Inside the company, VP Ross Anthony Bruck bought 8,000 shares at $17.76 each, increasing his holdings by 78.05%. Insider ownership now stands at 3.83%.
• Sixth Street Specialty Lending reported weaker-than-expected earnings for the latest quarter, but it raised its dividend sharply to $0.42 per quarter, implying a 10.0% annualized yield. Analysts currently rate the stock a Moderate Buy with a consensus price target of $19.67.

OMERS ADMINISTRATION Corp raised its holdings in shares of Sixth Street Specialty Lending, Inc. (NYSE:TSLX - Free Report) by 318.2% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 1,961,813 shares of the financial services provider's stock after acquiring an additional 1,492,704 shares during the period. OMERS ADMINISTRATION Corp owned about 2.06% of Sixth Street Specialty Lending worth $36,058,000 at the end of the most recent reporting period.

Several other large investors have also recently made changes to their positions in the business. Royal Bank of Canada lifted its position in Sixth Street Specialty Lending by 8.0% in the first quarter. Royal Bank of Canada now owns 124,241 shares of the financial services provider's stock valued at $2,780,000 after purchasing an additional 9,230 shares during the last quarter. Integrated Wealth Concepts LLC increased its stake in shares of Sixth Street Specialty Lending by 38.5% in the first quarter. Integrated Wealth Concepts LLC now owns 16,539 shares of the financial services provider's stock worth $370,000 after buying an additional 4,597 shares during the period. Invesco Ltd. raised its holdings in Sixth Street Specialty Lending by 8.0% during the 2nd quarter. Invesco Ltd. now owns 30,628 shares of the financial services provider's stock valued at $729,000 after buying an additional 2,263 shares during the last quarter. Marshall Wace LLP raised its holdings in Sixth Street Specialty Lending by 186.6% during the 2nd quarter. Marshall Wace LLP now owns 75,811 shares of the financial services provider's stock valued at $1,805,000 after buying an additional 49,362 shares during the last quarter. Finally, Glenview Trust co bought a new stake in Sixth Street Specialty Lending during the 2nd quarter valued at $231,000. 70.25% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other news, VP Ross Anthony Bruck bought 8,000 shares of the stock in a transaction that occurred on Monday, May 11th. The shares were bought at an average price of $17.76 per share, for a total transaction of $142,080.00. Following the purchase, the vice president owned 18,250 shares in the company, valued at $324,120. This represents a 78.05% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available through this link. Insiders own 3.83% of the company's stock.

Sixth Street Specialty Lending Price Performance

TSLX opened at $16.73 on Friday. The firm has a market cap of $1.59 billion, a PE ratio of 14.55 and a beta of 0.59. The stock has a 50-day moving average price of $17.10 and a 200-day moving average price of $18.55. Sixth Street Specialty Lending, Inc. has a 1 year low of $16.04 and a 1 year high of $24.79. The company has a debt-to-equity ratio of 1.17, a current ratio of 3.39 and a quick ratio of 3.39.

Sixth Street Specialty Lending (NYSE:TSLX - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The financial services provider reported $0.42 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.49 by ($0.07). Sixth Street Specialty Lending had a net margin of 25.25% and a return on equity of 11.92%. The business had revenue of $93.40 million during the quarter, compared to the consensus estimate of $103.14 million. During the same period last year, the company posted $0.58 earnings per share. Sell-side analysts predict that Sixth Street Specialty Lending, Inc. will post 1.72 earnings per share for the current fiscal year.

Sixth Street Specialty Lending Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 15th were issued a $0.42 dividend. The ex-dividend date of this dividend was Monday, June 15th. This represents a $1.68 annualized dividend and a yield of 10.0%. This is a positive change from Sixth Street Specialty Lending's previous quarterly dividend of $0.01. Sixth Street Specialty Lending's payout ratio is currently 146.09%.

Wall Street Analyst Weigh In

Several analysts recently issued reports on the company. Keefe, Bruyette & Woods cut their target price on Sixth Street Specialty Lending from $21.00 to $18.50 and set an "outperform" rating on the stock in a research note on Thursday, May 7th. Royal Bank Of Canada cut their price objective on Sixth Street Specialty Lending from $22.00 to $20.00 and set an "outperform" rating on the stock in a research report on Thursday, May 7th. Truist Financial reduced their target price on 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. 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. Finally, JPMorgan Chase & Co. reduced their price objective on shares of Sixth Street Specialty Lending from $17.50 to $16.50 and set a "neutral" rating on the stock in a research report on Thursday, July 2nd. Five investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $19.67.

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.

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