Sixth Street Specialty Lending, Inc. $TSLX Stock: Allen Investment Management LLC Cuts Holdings

Key Points

• Allen Investment Management cut its TSLX stake by 17.4% in the third quarter, selling 238,632 shares; it retained about 1.13 million shares, valued at roughly $20.4 million.
• Institutional ownership moves were mixed: several investors added shares, and institutional investors and hedge funds collectively held 70.25% of the company’s stock.
• Sixth Street Specialty Lending reported quarterly EPS of $0.44, in line with estimates, and revenue of $98.96 million, above forecasts. It announced a $0.42 quarterly dividend (a 9.5% annualized yield); analysts’ consensus rating was “Moderate Buy.”

Allen Investment Management LLC lowered its holdings in shares of Sixth Street Specialty Lending, Inc. (NYSE:TSLX - Free Report) by 17.4% in the third quarter, according to its most recent disclosure with the SEC. The firm owned 1,130,307 shares of the financial services provider's stock after selling 238,632 shares during the period. Allen Investment Management LLC owned 1.19% of Sixth Street Specialty Lending worth $20,368,000 as of its most recent filing with the SEC.

Other institutional investors have also recently bought and sold shares of the company. Van ECK Associates Corp lifted its position in shares of Sixth Street Specialty Lending by 28.1% in the second quarter. Van ECK Associates Corp now owns 2,366,266 shares of the financial services provider's stock valued at $40,629,000 after buying an additional 519,456 shares during the last quarter. OMERS ADMINISTRATION Corp bought a new stake in Sixth Street Specialty Lending in the 2nd quarter valued at $34,552,000. Callodine Capital Management LP raised its stake in Sixth Street Specialty Lending by 2.5% in the 1st quarter. Callodine Capital Management LP now owns 1,129,520 shares of the financial services provider's stock valued at $20,761,000 after acquiring an additional 27,528 shares during the period. Tectonic Advisors LLC lifted its holdings in Sixth Street Specialty Lending by 16.0% during the 3rd quarter. Tectonic Advisors LLC now owns 980,705 shares of the financial services provider's stock valued at $17,672,000 after purchasing an additional 135,502 shares during the last quarter. Finally, Rivernorth Capital Management LLC lifted its holdings in Sixth Street Specialty Lending by 233.2% during the 2nd quarter. Rivernorth Capital Management LLC now owns 969,599 shares of the financial services provider's stock valued at $16,648,000 after purchasing an additional 678,646 shares during the last quarter. Institutional investors and hedge funds own 70.25% of the company's stock.

Sixth Street Specialty Lending Trading Down 0.7%

TSLX stock opened at $17.64 on Friday. The company has a debt-to-equity ratio of 1.21, a quick ratio of 9.83 and a current ratio of 3.43. The company's 50-day simple moving average is $17.77 and its 200 day simple moving average is $18.15. Sixth Street Specialty Lending, Inc. has a 52 week low of $16.04 and a 52 week high of $22.84. The company has a market capitalization of $1.69 billion, a PE ratio of 21.00 and a beta of 0.61.

Sixth Street Specialty Lending (NYSE:TSLX - Get Free Report) last released its quarterly earnings results on Tuesday, November 3rd. The financial services provider reported $0.44 EPS for the quarter, hitting analysts' consensus estimates of $0.44. Sixth Street Specialty Lending had a net margin of 19.81% and a return on equity of 10.94%. The business had revenue of $98.96 million for the quarter, compared to analyst estimates of $97.59 million. As a group, sell-side analysts anticipate that Sixth Street Specialty Lending, Inc. will post 1.74 earnings per share for the current year.

Sixth Street Specialty Lending Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 31st. Stockholders of record on Tuesday, December 15th will be issued a dividend of $0.42 per share. The ex-dividend date of this dividend is Tuesday, December 15th. This represents a $1.68 annualized dividend and a dividend yield of 9.5%. Sixth Street Specialty Lending's dividend payout ratio (DPR) is currently 200.00%.

Analyst Ratings Changes

A number of research firms have commented on TSLX. Keefe, Bruyette & Woods lifted their price objective on shares of Sixth Street Specialty Lending from $18.50 to $19.50 and gave the stock an "outperform" rating in a research report on Monday, August 10th. B. Riley Financial reissued a "buy" rating and issued a $19.00 price objective (down from $20.00) on shares of Sixth Street Specialty Lending in a research report on Friday. Wall Street Zen upgraded shares of Sixth Street Specialty Lending from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th. Finally, Weiss Ratings cut shares of Sixth Street Specialty Lending from a "hold (c)" rating to a "hold (c-)" rating in a research note on Thursday, October 8th. Six research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $19.71.

About Sixth Street Specialty Lending

Sixth Street Specialty Lending, Inc is a business development company (BDC) that provides financing to middle-market companies. The company primarily invests in privately negotiated debt and equity investments, with a focus on supporting businesses that may have limited access to traditional bank financing.

Its investment portfolio generally includes first-lien and second-lien loans, unitranche financing, mezzanine debt, and related equity investments. Sixth Street Specialty Lending seeks to generate income through interest payments and other investment returns while providing customized financing solutions for acquisitions, recapitalizations, refinancings, growth initiatives, and other corporate purposes.

The company was formed in 2011 and is externally managed by an affiliate of Sixth Street, an investment firm focused on credit and other asset classes.

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