Sixth Street Specialty Lending, Inc. $TSLX Shares Purchased by Sound Income Strategies LLC

Key Points

• Sound Income Strategies LLC increased its stake in Sixth Street Specialty Lending by 2.4% in the first quarter, buying 59,937 more shares and bringing its total to 2.57 million shares worth about $46.6 million.
• Sixth Street Specialty Lending reported weaker-than-expected first-quarter earnings, with EPS of $0.42 versus the $0.49 consensus and revenue of $93.4 million below estimates.
• The company boosted its quarterly dividend to $0.42 per share, implying a 9.7% annualized yield, while analysts currently have a Moderate Buy consensus with an average price target of $19.67.

Sound Income Strategies LLC boosted its position in Sixth Street Specialty Lending, Inc. (NYSE:TSLX - Free Report) by 2.4% during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 2,571,052 shares of the financial services provider's stock after buying an additional 59,937 shares during the period. Sixth Street Specialty Lending makes up about 2.2% of Sound Income Strategies LLC's holdings, making the stock its 4th biggest position. Sound Income Strategies LLC owned approximately 2.71% of Sixth Street Specialty Lending worth $46,562,000 at the end of the most recent reporting period.

Several other institutional investors also recently bought and sold shares of the company. Lido Advisors LLC raised its position in Sixth Street Specialty Lending by 1.2% during the 4th 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. Stratos Wealth Partners LTD. boosted its holdings in shares of Sixth Street Specialty Lending by 5.6% in the fourth quarter. Stratos Wealth Partners LTD. now owns 10,047 shares of the financial services provider's stock valued at $218,000 after acquiring an additional 532 shares in the last quarter. IFG Advisory LLC boosted its holdings in shares of Sixth Street Specialty Lending by 2.7% in the third quarter. IFG Advisory LLC now owns 21,159 shares of the financial services provider's stock valued at $484,000 after acquiring an additional 551 shares in the last quarter. Family Wealth Partners LLC increased its stake in shares of Sixth Street Specialty Lending by 2.5% during the fourth quarter. Family Wealth Partners LLC now owns 24,867 shares of the financial services provider's stock worth $540,000 after acquiring an additional 602 shares during the period. Finally, Oppenheimer & Co. Inc. increased its stake in shares of 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 acquiring an additional 626 shares during the period. 70.25% of the stock is owned by institutional investors and hedge funds.

Sixth Street Specialty Lending Stock Down 0.1%

Shares of NYSE TSLX opened at $17.32 on Friday. The firm's 50-day moving average is $17.51 and its two-hundred day moving average is $19.04. The company has a market capitalization of $1.65 billion, a PE ratio of 15.07 and a beta of 0.59. Sixth Street Specialty Lending, Inc. has a 12-month low of $16.04 and a 12-month high of $25.17. 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 issued its quarterly earnings data on Tuesday, May 5th. The financial services provider reported $0.42 earnings per share 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 analysts' expectations of $103.14 million. During the same period last year, the business earned $0.58 earnings per share. Equities 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. Investors of record on Monday, June 15th were given a dividend of $0.42 per share. The ex-dividend date was Monday, June 15th. This represents a $1.68 dividend on an annualized basis and a yield of 9.7%. This is a boost from Sixth Street Specialty Lending's previous quarterly dividend of $0.01. Sixth Street Specialty Lending's dividend payout ratio (DPR) is 146.09%.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on the stock. 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 for the company in a research report on Thursday. Weiss Ratings cut Sixth Street Specialty Lending from a "hold (c)" rating to a "hold (c-)" rating in a research report on Monday, May 18th. Truist Financial cut their target price on Sixth Street Specialty Lending from $22.00 to $20.00 and set a "buy" rating for the company in a research note on Thursday, May 7th. Citizens Jmp cut their price target on shares of Sixth Street Specialty Lending from $25.00 to $24.00 and set a "market outperform" rating for the company in a report on Wednesday, April 22nd. Finally, Wall Street Zen cut shares of Sixth Street Specialty Lending from a "hold" rating to a "sell" rating in a report on Saturday, May 9th. Five research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Sixth Street Specialty Lending currently has an average rating of "Moderate Buy" and an average price target of $19.67.

Insiders Place Their Bets

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

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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