Tectonic Advisors LLC Purchases 135,502 Shares of Sixth Street Specialty Lending, Inc. $TSLX

Key Points

• Tectonic Advisors increased its Sixth Street Specialty Lending (TSLX) stake by 16%, purchasing 135,502 shares to hold 980,705 shares worth approximately $17.7 million. Institutional investors collectively own 70.25% of the company.
• Analyst sentiment is generally positive, with five Buy ratings and three Holds producing a “Moderate Buy” consensus and an average price target of $19.83.
• TSLX recently traded at $17.11 and pays a quarterly dividend of $0.42 per share, equivalent to a 9.8% annualized yield. Its latest quarterly earnings of $0.43 per share slightly exceeded estimates.

Tectonic Advisors LLC grew its holdings in shares of Sixth Street Specialty Lending, Inc. (NYSE:TSLX - Free Report) by 16.0% during the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 980,705 shares of the financial services provider's stock after buying an additional 135,502 shares during the period. Sixth Street Specialty Lending accounts for about 0.8% of Tectonic Advisors LLC's investment portfolio, making the stock its 26th biggest holding. Tectonic Advisors LLC owned 1.03% of Sixth Street Specialty Lending worth $17,672,000 at the end of the most recent quarter.

A number of other hedge funds also recently made changes to their positions in TSLX. Quantum Portfolio Management LLC bought a new position in Sixth Street Specialty Lending in the 1st quarter worth approximately $273,434,000. Strs Ohio increased its position in Sixth Street Specialty Lending by 101.8% in 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 raised its stake in Sixth Street Specialty Lending by 2.4% during 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 in the last quarter. Van ECK Associates Corp raised its stake in Sixth Street Specialty Lending by 28.1% during the 2nd quarter. Van ECK Associates Corp now owns 2,366,266 shares of the financial services provider's stock valued at $40,629,000 after acquiring an additional 519,456 shares in the last quarter. Finally, OMERS ADMINISTRATION Corp acquired a new position in Sixth Street Specialty Lending during the 2nd quarter worth $34,552,000. Institutional investors own 70.25% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the stock. 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. Zacks Research raised Sixth Street Specialty Lending from a "strong sell" rating to a "hold" rating in a research note on Tuesday, July 7th. Wall Street Zen raised Sixth Street Specialty Lending from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th. JPMorgan Chase & Co. cut their price objective on Sixth Street Specialty Lending from $17.50 to $16.50 and set a "neutral" rating on the stock in a report on Thursday, July 2nd. Finally, Keefe, Bruyette & Woods upped their price objective on shares of Sixth Street Specialty Lending from $18.50 to $19.50 and gave the company an "outperform" rating in a research note on Monday, August 10th. Five equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $19.83.

Sixth Street Specialty Lending Stock Down 1.6%

NYSE:TSLX traded down $0.27 during trading hours on Friday, hitting $17.11. 400,887 shares of the stock traded hands, compared to its average volume of 515,018. The firm has a 50 day moving average price of $17.99 and a 200 day moving average price of $17.80. The company has a current ratio of 9.83, a quick ratio of 9.83 and a debt-to-equity ratio of 1.24. Sixth Street Specialty Lending, Inc. has a fifty-two week low of $16.04 and a fifty-two week high of $23.19. The firm has a market cap of $1.63 billion, a price-to-earnings ratio of 18.01 and a beta of 0.62.

Sixth Street Specialty Lending (NYSE:TSLX - Get Free Report) last released its earnings results on Tuesday, August 4th. The financial services provider reported $0.43 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.42 by $0.01. The company had revenue of $97.84 million during the quarter, compared to analyst estimates of $95.28 million. Sixth Street Specialty Lending had a return on equity of 11.33% and a net margin of 21.79%. During the same quarter in the prior year, the company earned $0.56 earnings per share. Equities research analysts anticipate that Sixth Street Specialty Lending, Inc. will post 1.74 earnings per share for the current year.

Sixth Street Specialty Lending Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th were given a dividend of $0.42 per share. This represents a $1.68 annualized dividend and a yield of 9.8%. The ex-dividend date of this dividend was Tuesday, September 15th. Sixth Street Specialty Lending's payout ratio is presently 176.84%.

Sixth Street Specialty Lending Company Profile

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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