Sixth Street Specialty Lending (NYSE:TSLX) Stock Price Breaks Below 50 Day Moving Average - Here's Why

Key Points

• Shares slipped below their 50-day moving average, trading as low as $17.45 versus the $17.71 average and last changing hands at $17.635.
• Analysts’ consensus rating is “Moderate Buy,” with an average price target of $19.71; six analysts rate the stock Buy and three rate it Hold.
• Quarterly EPS of $0.44 matched expectations, while revenue of $98.96 million topped forecasts. The company declared a $0.42 quarterly dividend, equivalent to a 9.5% yield, though its payout ratio is 200%.

Sixth Street Specialty Lending, Inc. (NYSE:TSLX - Get Free Report) shares crossed below its 50-day moving average during trading on Wednesday. The stock has a 50-day moving average of $17.71 and traded as low as $17.45. Sixth Street Specialty Lending shares last traded at $17.6350, with a volume of 428,168 shares trading hands.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on TSLX shares. B. Riley Financial reaffirmed a "buy" rating and set a $19.00 price target (down from $20.00) on shares of Sixth Street Specialty Lending in a research report on Friday, November 6th. Keefe, Bruyette & Woods increased their price target on Sixth Street Specialty Lending from $18.50 to $19.50 and gave the company an "outperform" rating in a research report on Monday, August 10th. Weiss Ratings cut shares of Sixth Street Specialty Lending from a "hold (c)" rating to a "hold (c-)" rating in a report on Thursday, October 8th. Finally, Wall Street Zen raised Sixth Street Specialty Lending from a "sell" rating to a "hold" rating in a report on Saturday, August 8th. Six research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, Sixth Street Specialty Lending has an average rating of "Moderate Buy" and a consensus target price of $19.71.

Sixth Street Specialty Lending Stock Performance

The company has a debt-to-equity ratio of 1.21, a quick ratio of 3.43 and a current ratio of 3.43. The stock has a fifty day simple moving average of $17.71 and a two-hundred day simple moving average of $18.09. The stock has a market cap of $1.69 billion, a price-to-earnings ratio of 20.99 and a beta of 0.61.

Sixth Street Specialty Lending (NYSE:TSLX - Get Free Report) last posted its 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 firm had revenue of $98.96 million during the quarter, compared to analysts' expectations of $97.59 million. Analysts expect that Sixth Street Specialty Lending, Inc. will post 1.74 EPS for the current fiscal year.

Sixth Street Specialty Lending Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 31st. Stockholders of record on Tuesday, December 15th will be paid a $0.42 dividend. This represents a $1.68 dividend on an annualized basis and a dividend yield of 9.5%. The ex-dividend date is Tuesday, December 15th. Sixth Street Specialty Lending's dividend payout ratio is presently 200.00%.

Institutional Investors Weigh In On Sixth Street Specialty Lending

Several hedge funds have recently modified their holdings of the company. Latitude Advisors LLC acquired a new position in Sixth Street Specialty Lending in the 3rd quarter worth about $39,000. Burk Holdings LLC bought a new stake in shares of Sixth Street Specialty Lending during the second quarter worth about $51,000. Fifth Third Bancorp bought a new stake in shares of Sixth Street Specialty Lending during the first quarter worth about $63,000. Frazier Financial Advisors LLC bought a new stake in shares of Sixth Street Specialty Lending during the second quarter worth about $83,000. Finally, Northwestern Mutual Wealth Management Co. acquired a new position in shares of Sixth Street Specialty Lending in the second quarter valued at approximately $96,000. Institutional investors and hedge funds own 70.25% of the company's stock.

Sixth Street Specialty Lending Company Profile

Sixth Street Specialty Lending, Inc. is a business development company that provides customized financing to middle-market companies. Its investment strategy focuses on privately negotiated loans and other investments in businesses across a range of industries. The company's investments include senior secured first-lien loans, unitranche and second-lien loans, and, in some cases, mezzanine debt and equity. It primarily serves companies in the United States, including both sponsor-backed and non-sponsor-backed businesses.

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