Tectonic Advisors LLC Increases Stock Position in Sixth Street Specialty Lending, Inc. $TSLX

Key Points

• Tectonic Advisors LLC increased its Q4 stake in Sixth Street Specialty Lending by 10.5% to 617,476 shares (about $13.4M), and insiders — led by VP Alan Waxman who bought 200,000 shares — purchased 545,000 shares (~$10M) in the last three months, with insiders now owning 3.3%.
• The firm missed quarterly expectations, reporting $0.30 EPS vs. $0.50 consensus, and cut its quarterly dividend to $0.01 (annualized $0.04), leaving a dividend payout ratio of 101.66%.
• Despite several price-target cuts, analyst consensus remains a Moderate Buy with an average target of $21.94, while TSLX trades around $18.04 and is majority-owned (70.25%) by institutional investors.

Tectonic Advisors LLC grew its position in Sixth Street Specialty Lending, Inc. (NYSE:TSLX - Free Report) by 10.5% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 617,476 shares of the financial services provider's stock after purchasing an additional 58,538 shares during the period. Tectonic Advisors LLC owned about 0.65% of Sixth Street Specialty Lending worth $13,412,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently made changes to their positions in TSLX. Harbor Investment Advisory LLC raised its holdings in shares of Sixth Street Specialty Lending by 673.2% in the fourth quarter. Harbor Investment Advisory LLC now owns 1,732 shares of the financial services provider's stock valued at $38,000 after purchasing an additional 1,508 shares during the last quarter. Advisory Services Network LLC purchased a new stake in shares of Sixth Street Specialty Lending in the third quarter valued at about $75,000. Redmont Wealth Advisors LLC purchased a new stake in shares of Sixth Street Specialty Lending in the third quarter valued at about $79,000. State of Alaska Department of Revenue purchased a new stake in Sixth Street Specialty Lending during the third quarter worth about $98,000. Finally, Farther Finance Advisors LLC increased its holdings in Sixth Street Specialty Lending by 604.6% during the third quarter. Farther Finance Advisors LLC now owns 4,700 shares of the financial services provider's stock worth $107,000 after buying an additional 4,033 shares during the last quarter. Hedge funds and other institutional investors own 70.25% of the company's stock.

Analyst Ratings Changes

TSLX has been the subject of a number of research analyst reports. Wall Street Zen upgraded shares of Sixth Street Specialty Lending from a "sell" rating to a "hold" rating in a report on Saturday, April 4th. Truist Financial decreased their price objective on shares of Sixth Street Specialty Lending from $24.00 to $22.00 and set a "buy" rating for the company in a report on Tuesday, February 17th. Royal Bank Of Canada decreased their price objective on shares of Sixth Street Specialty Lending from $24.00 to $22.00 and set an "outperform" rating for the company in a report on Friday, February 20th. Weiss Ratings downgraded shares of Sixth Street Specialty Lending from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, February 20th. Finally, Wells Fargo & Company decreased their price objective on shares of Sixth Street Specialty Lending from $22.00 to $20.00 and set an "overweight" rating for the company in a report on Tuesday, February 17th. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $21.94.

Sixth Street Specialty Lending Price Performance

TSLX stock opened at $18.04 on Monday. The firm has a 50 day moving average of $18.60 and a 200-day moving average of $20.74. The company has a current ratio of 2.83, a quick ratio of 2.83 and a debt-to-equity ratio of 1.08. Sixth Street Specialty Lending, Inc. has a 12 month low of $16.99 and a 12 month high of $25.17. The firm has a market capitalization of $1.71 billion, a P/E ratio of 9.96 and a beta of 0.66.

Sixth Street Specialty Lending (NYSE:TSLX - Get Free Report) last released its quarterly earnings data on Thursday, February 12th. The financial services provider reported $0.30 EPS for the quarter, missing analysts' consensus estimates of $0.50 by ($0.20). Sixth Street Specialty Lending had a net margin of 37.99% and a return on equity of 12.71%. The firm had revenue of $108.25 million during the quarter, compared to the consensus estimate of $107.11 million. During the same quarter last year, the business posted $0.61 earnings per share. As a group, sell-side analysts predict that Sixth Street Specialty Lending, Inc. will post 2.19 earnings per share for the current fiscal year.

Sixth Street Specialty Lending Cuts Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Monday, March 16th were given a $0.01 dividend. This represents a $0.04 dividend on an annualized basis and a dividend yield of 0.2%. The ex-dividend date was Monday, March 16th. Sixth Street Specialty Lending's dividend payout ratio (DPR) is 101.66%.

Insider Activity at Sixth Street Specialty Lending

In other news, VP Alan Waxman acquired 200,000 shares of the business's stock in a transaction dated Monday, March 9th. The stock was bought at an average cost of $18.18 per share, for a total transaction of $3,636,000.00. Following the completion of the transaction, the vice president owned 500,000 shares of the company's stock, valued at $9,090,000. The trade was a 66.67% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Insiders have purchased 545,000 shares of company stock valued at $9,997,150 in the last three months. 3.30% of the stock is currently owned by company insiders.

Sixth Street Specialty Lending Company 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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