Insider Buying: Sixth Street Specialty Lending (NYSE:TSLX) VP Acquires 200,000 Shares of Stock

Key Points

• Insider buying: VP Alan Waxman acquired about 545,000 shares in early March (including a 200,000-share purchase on March 9), spending roughly $10.0 million and raising his direct stake to about 545,000 shares.
• Dividend cut and weak quarter: The company declared a $0.01 quarterly dividend (annualized $0.04, 0.2% yield) while reporting Q EPS of $0.30 vs. $0.50 expected and down from $0.61 a year earlier, leaving a payout ratio of 101.66%.
• Analysts have a consensus "Moderate Buy" rating with a $22.25 average price target, while the stock trades near $18.42 and has a 12‑month range of $16.99–$25.17.

Sixth Street Specialty Lending, Inc. (NYSE:TSLX - Get Free Report) VP Alan Waxman acquired 200,000 shares of the firm's stock in a transaction that occurred on Monday, March 9th. The shares were bought at an average price of $18.18 per share, with a total value of $3,636,000.00. Following the acquisition, the vice president directly owned 500,000 shares of the company's stock, valued at $9,090,000. The trade was a 66.67% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink.

Alan Waxman also recently made the following trade(s):

• On Tuesday, March 10th, Alan Waxman acquired 45,000 shares of Sixth Street Specialty Lending stock. The stock was purchased at an average price of $18.47 per share, for a total transaction of $831,150.00.
• On Friday, March 6th, Alan Waxman bought 200,000 shares of Sixth Street Specialty Lending stock. The stock was purchased at an average price of $18.42 per share, for a total transaction of $3,684,000.00.
• On Thursday, March 5th, Alan Waxman bought 100,000 shares of Sixth Street Specialty Lending stock. The shares were acquired at an average price of $18.46 per share, with a total value of $1,846,000.00.

Sixth Street Specialty Lending Stock Performance

TSLX traded down $0.01 on Wednesday, hitting $18.42. The company's stock had a trading volume of 961,642 shares, compared to its average volume of 1,028,604. 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 cap of $1.74 billion, a P/E ratio of 10.18 and a beta of 0.73. The company has a quick ratio of 2.83, a current ratio of 2.83 and a debt-to-equity ratio of 1.08. The company's 50 day simple moving average is $20.42 and its 200-day simple moving average is $21.71.

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

Sixth Street Specialty Lending Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Monday, March 16th will be issued a $0.01 dividend. The ex-dividend date of this dividend is Monday, March 16th. This represents a $0.04 annualized dividend and a dividend yield of 0.2%. Sixth Street Specialty Lending's dividend payout ratio is presently 101.66%.

Analysts Set New Price Targets

A number of equities analysts have commented on the stock. Weiss Ratings cut shares of Sixth Street Specialty Lending from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, February 20th. JPMorgan Chase & Co. dropped their price objective on shares of Sixth Street Specialty Lending from $23.00 to $21.00 and set a "neutral" rating for the company in a report on Tuesday, February 17th. Truist Financial reduced their target price on Sixth Street Specialty Lending from $24.00 to $22.00 and set a "buy" rating on the stock in a research note on Tuesday, February 17th. Keefe, Bruyette & Woods lowered their price target on Sixth Street Specialty Lending from $23.00 to $22.00 and set an "outperform" rating on the stock in a research report on Tuesday, February 17th. Finally, Citizens Jmp reaffirmed a "market outperform" rating and set a $25.00 price target on shares of Sixth Street Specialty Lending in a research note on Wednesday, February 18th. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $22.25.

Institutional Investors Weigh In On Sixth Street Specialty Lending

Several institutional investors have recently bought and sold shares of the stock. Van ECK Associates Corp increased its stake in shares of Sixth Street Specialty Lending by 18.0% in the third quarter. Van ECK Associates Corp now owns 2,529,187 shares of the financial services provider's stock worth $57,817,000 after buying an additional 385,398 shares during the period. Sound Income Strategies LLC grew its holdings in Sixth Street Specialty Lending by 4.5% in the 4th quarter. Sound Income Strategies LLC now owns 2,511,115 shares of the financial services provider's stock worth $55,998,000 after acquiring an additional 108,708 shares during the last quarter. Progeny 3 Inc. grew its holdings in Sixth Street Specialty Lending by 1.0% in the 2nd quarter. Progeny 3 Inc. now owns 2,476,398 shares of the financial services provider's stock worth $58,963,000 after acquiring an additional 23,451 shares during the last quarter. Burgundy Asset Management Ltd. increased its position in shares of Sixth Street Specialty Lending by 1.4% in the second quarter. Burgundy Asset Management Ltd. now owns 2,378,968 shares of the financial services provider's stock valued at $56,643,000 after acquiring an additional 31,922 shares during the period. Finally, Bank of Montreal Can raised its stake in shares of Sixth Street Specialty Lending by 419.5% during the fourth quarter. Bank of Montreal Can now owns 2,284,920 shares of the financial services provider's stock valued at $49,628,000 after acquiring an additional 1,845,088 shares during the last quarter. 70.25% of the stock is currently owned by hedge funds and other institutional investors.

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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