Rivernorth Capital Management LLC Makes New $5.35 Million Investment in Sixth Street Specialty Lending, Inc. $TSLX

Key Points

• Rivernorth Capital Management purchased 290,953 shares of Sixth Street Specialty Lending, worth approximately $5.35 million and representing about 0.31% of the company. Institutional investors and hedge funds collectively own 70.25% of TSLX.
• Sixth Street Specialty Lending reported quarterly EPS of $0.42, below analysts’ $0.49 estimate, while revenue of $93.4 million also missed expectations. The stock opened at $17.70, compared with a 12-month range of $16.04 to $24.79.
• The company increased its quarterly dividend to $0.42 per share, implying an annualized yield of about 9.5%. Analysts maintain a “Moderate Buy” consensus with an average price target of $19.67.

Rivernorth Capital Management LLC purchased a new stake in shares of Sixth Street Specialty Lending, Inc. (NYSE:TSLX - Free Report) during the 1st quarter, according to the company in its most recent filing with the SEC. The fund purchased 290,953 shares of the financial services provider's stock, valued at approximately $5,348,000. Rivernorth Capital Management LLC owned about 0.31% of Sixth Street Specialty Lending as of its most recent filing with the SEC.

Other hedge funds have also modified their holdings of the company. Quantum Portfolio Management LLC purchased a new stake in Sixth Street Specialty Lending in the first quarter valued at approximately $273,434,000. Strs Ohio lifted its stake in Sixth Street Specialty Lending by 101.8% during the 1st quarter. Strs Ohio now owns 4,347,710 shares of the financial services provider's stock valued at $79,911,000 after acquiring an additional 2,193,551 shares during the period. Sound Income Strategies LLC boosted its holdings in shares of Sixth Street Specialty Lending by 2.4% in the 1st quarter. Sound Income Strategies LLC now owns 2,571,052 shares of the financial services provider's stock valued at $46,562,000 after acquiring an additional 59,937 shares during the last quarter. Progeny 3 Inc. boosted its holdings in shares of Sixth Street Specialty Lending by 1.0% in the 2nd quarter. Progeny 3 Inc. now owns 2,476,398 shares of the financial services provider's stock valued at $58,963,000 after acquiring an additional 23,451 shares during the last quarter. Finally, Bank of Montreal Can increased its stake in shares of Sixth Street Specialty Lending by 419.5% in the fourth quarter. Bank of Montreal Can now owns 2,284,920 shares of the financial services provider's stock worth $49,628,000 after acquiring an additional 1,845,088 shares during the period. 70.25% of the stock is owned by institutional investors and hedge funds.

Sixth Street Specialty Lending Stock Performance

NYSE TSLX opened at $17.70 on Wednesday. The stock has a market capitalization of $1.68 billion, a price-to-earnings ratio of 15.39 and a beta of 0.59. The stock has a 50-day moving average of $17.09 and a 200 day moving average of $18.47. The company has a current ratio of 3.39, a quick ratio of 3.39 and a debt-to-equity ratio of 1.17. Sixth Street Specialty Lending, Inc. has a twelve month low of $16.04 and a twelve month high of $24.79.

Sixth Street Specialty Lending (NYSE:TSLX - Get Free Report) last posted its quarterly earnings data 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). The business had revenue of $93.40 million during the quarter, compared to analysts' expectations of $103.14 million. Sixth Street Specialty Lending had a net margin of 25.25% and a return on equity of 11.92%. During the same quarter last year, the firm earned $0.58 earnings per share. Sell-side analysts anticipate that Sixth Street Specialty Lending, Inc. will post 1.71 EPS for the current fiscal year.

Sixth Street Specialty Lending Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th were given a dividend of $0.42 per share. This is a boost from Sixth Street Specialty Lending's previous quarterly dividend of $0.01. This represents a $1.68 dividend on an annualized basis and a yield of 9.5%. The ex-dividend date was Monday, June 15th. Sixth Street Specialty Lending's dividend payout ratio (DPR) is currently 146.09%.

Insiders Place Their Bets

In related news, VP Ross Anthony Bruck acquired 8,000 shares of the firm's stock in a transaction on Monday, May 11th. The shares were acquired at an average cost of $17.76 per share, with a total value of $142,080.00. Following the completion of the acquisition, the vice president directly owned 18,250 shares in the company, valued at approximately $324,120. This trade represents a 78.05% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Corporate insiders own 3.83% of the company's stock.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on TSLX shares. Citizens Jmp decreased their target price on shares of Sixth Street Specialty Lending from $25.00 to $24.00 and set a "market outperform" rating for the company in a research report on Wednesday, April 22nd. Weiss Ratings downgraded Sixth Street Specialty Lending from a "hold (c)" rating to a "hold (c-)" rating in a research note on Monday, May 18th. Zacks Research upgraded Sixth Street Specialty Lending from a "strong sell" rating to a "hold" rating in a research report on Tuesday, July 7th. Royal Bank Of Canada lowered 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. Finally, Truist Financial cut their target price on shares of Sixth Street Specialty Lending from $22.00 to $20.00 and set a "buy" rating for the company in a report on Thursday, May 7th. Five research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $19.67.

Sixth Street Specialty Lending 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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