Sixth Street Specialty Lending, Inc. $TSLX Stock Position Trimmed by Sound Income Strategies LLC

Key Points

• Sound Income Strategies reduced its Sixth Street Specialty Lending stake by 7.6%, selling 205,719 shares and retaining 2.5 million shares valued at approximately $43.9 million. The stock remains its eighth-largest holding and represents about 1% of its portfolio.
• Institutional ownership remains substantial at 70.25%, with several investors increasing their positions during the period, including Miller Global Investments, which boosted its stake by 265.4%.
• TSLX recently traded at $17.34 and offers a $0.42 quarterly dividend, equal to a 9.7% annualized yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $19.83, despite mixed individual ratings.

Sound Income Strategies LLC trimmed its holdings in shares of Sixth Street Specialty Lending, Inc. (NYSE:TSLX - Free Report) by 7.6% during the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 2,500,571 shares of the financial services provider's stock after selling 205,719 shares during the period. Sixth Street Specialty Lending comprises approximately 1.0% of Sound Income Strategies LLC's investment portfolio, making the stock its 8th largest holding. Sound Income Strategies LLC owned 2.63% of Sixth Street Specialty Lending worth $43,935,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Miller Global Investments LLC boosted its stake in Sixth Street Specialty Lending by 265.4% in the third quarter. Miller Global Investments LLC now owns 37,876 shares of the financial services provider's stock valued at $683,000 after acquiring an additional 27,509 shares during the last quarter. Confluence Investment Management LLC raised its holdings in shares of Sixth Street Specialty Lending by 2.0% in the 3rd quarter. Confluence Investment Management LLC now owns 216,194 shares of the financial services provider's stock worth $3,896,000 after purchasing an additional 4,240 shares during the period. Sequoia Financial Advisors LLC purchased a new position in Sixth Street Specialty Lending in the second quarter valued at approximately $200,000. Ehrenkranz Partners L.P. grew its holdings in Sixth Street Specialty Lending by 14.8% during the second quarter. Ehrenkranz Partners L.P. now owns 43,015 shares of the financial services provider's stock valued at $739,000 after purchasing an additional 5,541 shares during the period. Finally, IFP Advisors Inc increased its position in Sixth Street Specialty Lending by 30.6% in the second quarter. IFP Advisors Inc now owns 305,604 shares of the financial services provider's stock worth $5,247,000 after buying an additional 71,693 shares during the last quarter. 70.25% of the stock is owned by hedge funds and other institutional investors.

Sixth Street Specialty Lending Price Performance

NYSE:TSLX traded down $0.23 during trading hours on Friday, hitting $17.34. The stock had a trading volume of 649,688 shares, compared to its average volume of 736,614. The company has a 50 day simple moving average of $18.28 and a two-hundred day simple moving average of $17.86. The firm has a market capitalization of $1.65 billion, a price-to-earnings ratio of 18.25 and a beta of 0.62. 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 one year low of $16.04 and a one year high of $23.19.

Sixth Street Specialty Lending (NYSE:TSLX - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The financial services provider reported $0.43 earnings per share for the quarter, topping the consensus estimate 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 analysts' expectations of $95.28 million. During the same quarter in the prior year, the firm posted $0.56 earnings per share. Research analysts forecast that Sixth Street Specialty Lending, Inc. will post 1.74 earnings per share for the current fiscal year.

Sixth Street Specialty Lending Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th were issued a $0.42 dividend. The ex-dividend date of this dividend was Tuesday, September 15th. This represents a $1.68 annualized dividend and a dividend yield of 9.7%. Sixth Street Specialty Lending's dividend payout ratio (DPR) is presently 176.84%.

Wall Street Analyst Weigh In

Several research analysts recently commented on TSLX shares. JPMorgan Chase & Co. cut 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 report on Thursday, July 2nd. Zacks Research raised shares of Sixth Street Specialty Lending from a "strong sell" rating to a "hold" rating in a report on Tuesday, July 7th. Keefe, Bruyette & Woods increased their target price on 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. Wall Street Zen raised Sixth Street Specialty Lending from a "sell" rating to a "hold" rating in a report on Saturday, August 8th. Finally, Weiss Ratings lowered Sixth Street Specialty Lending from a "hold (c)" rating to a "hold (c-)" rating in a research note on Thursday. Five equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $19.83.

About Sixth Street Specialty Lending

Sixth Street Specialty Lending, Inc NYSE: TSLX is a business development company (BDC) that provides financing to established middle-market companies. The company primarily invests in privately originated debt, including first-lien senior secured loans, second-lien loans, subordinated debt and other credit investments. It may also make select equity investments in connection with its lending activities.

Sixth Street Specialty Lending generally focuses on companies with experienced management teams, strong market positions and established operating histories.

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