Rivernorth Capital Management LLC Boosts Holdings in Sixth Street Specialty Lending, Inc. $TSLX

Key Points

• Rivernorth Capital Management increased its TSLX stake by 233.2% in the second quarter, acquiring 678,646 additional shares to own 969,599 shares valued at approximately $16.6 million. Institutional investors collectively own 70.25% of the company.
• Analysts maintain a generally positive outlook, with five Buy ratings and three Holds producing a “Moderate Buy” consensus and an average price target of $19.83, despite several target-price reductions.
• TSLX reported quarterly EPS of $0.43, exceeding estimates, and announced a $0.42 quarterly dividend. The annualized dividend of $1.68 implies a 9.0% yield, though its payout ratio is elevated at 176.84%.

Rivernorth Capital Management LLC raised its position in Sixth Street Specialty Lending, Inc. (NYSE:TSLX - Free Report) by 233.2% in the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 969,599 shares of the financial services provider's stock after acquiring an additional 678,646 shares during the period. Sixth Street Specialty Lending makes up approximately 0.8% of Rivernorth Capital Management LLC's holdings, making the stock its 24th biggest holding. Rivernorth Capital Management LLC owned 1.02% of Sixth Street Specialty Lending worth $16,648,000 at the end of the most recent quarter.

A number of other large investors have also modified their holdings of TSLX. Lido Advisors LLC raised its holdings in shares of Sixth Street Specialty Lending by 1.2% in the fourth quarter. Lido Advisors LLC now owns 42,172 shares of the financial services provider's stock worth $958,000 after buying an additional 506 shares during the last quarter. Oppenheimer & Co. Inc. boosted its position in Sixth Street Specialty Lending by 5.5% during the fourth quarter. Oppenheimer & Co. Inc. now owns 11,923 shares of the financial services provider's stock worth $259,000 after purchasing an additional 626 shares in the last quarter. Sage Investment Counsel LLC increased its holdings in Sixth Street Specialty Lending by 3.2% in the 1st quarter. Sage Investment Counsel LLC now owns 25,577 shares of the financial services provider's stock worth $470,000 after acquiring an additional 800 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its stake in Sixth Street Specialty Lending by 4.6% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 21,905 shares of the financial services provider's stock valued at $476,000 after buying an additional 968 shares in the last quarter. Finally, Cornerstone Wealth Management LLC boosted its stake in shares of Sixth Street Specialty Lending by 2.1% in the fourth quarter. Cornerstone Wealth Management LLC now owns 47,093 shares of the financial services provider's stock worth $1,023,000 after acquiring an additional 970 shares during the last quarter. Hedge funds and other institutional investors own 70.25% of the company's stock.

Analysts Set New Price Targets

TSLX has been the subject of several research reports. Royal Bank Of Canada cut their price objective on shares of Sixth Street Specialty Lending from $22.00 to $20.00 and set an "outperform" rating for the company in a report on Thursday, May 7th. Wells Fargo & Company decreased their target price on shares of 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. Zacks Research upgraded Sixth Street Specialty Lending from a "strong sell" rating to a "hold" rating in a research report on Tuesday, July 7th. Truist Financial reduced their price target 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. Finally, Weiss Ratings restated a "hold (c-)" rating on shares of Sixth Street Specialty Lending in a report on Thursday, August 13th. Five research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $19.83.

Sixth Street Specialty Lending Stock Up 0.1%

Shares of NYSE TSLX opened at $18.75 on Monday. The company has a market capitalization of $1.78 billion, a price-to-earnings ratio of 19.74 and a beta of 0.59. The company has a debt-to-equity ratio of 1.24, a current ratio of 9.83 and a quick ratio of 9.83. Sixth Street Specialty Lending, Inc. has a 1 year low of $16.04 and a 1 year high of $24.79. The business has a 50-day moving average of $17.71 and a two-hundred day moving average of $17.95.

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

Sixth Street Specialty Lending Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th will be given a $0.42 dividend. This represents a $1.68 dividend on an annualized basis and a yield of 9.0%. The ex-dividend date is Tuesday, September 15th. Sixth Street Specialty Lending's dividend payout ratio (DPR) is 176.84%.

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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