Sixth Street Specialty Lending, Inc. (NYSE:TSLX) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Analysts rate Sixth Street Specialty Lending “Moderate Buy,” with five buy ratings and three holds among eight analysts. The average 12-month price target is $19.83, modestly above the $18.59 share price.
• The company reported quarterly EPS of $0.43, beating estimates of $0.42, while revenue of $97.84 million also exceeded expectations. It declared a quarterly dividend of $0.42 per share, representing a 9.0% annualized yield.
• Institutional investors own 70.25% of the stock, with several funds increasing their positions. Shares have traded between $16.04 and $24.79 over the past year.

Shares of Sixth Street Specialty Lending, Inc. (NYSE:TSLX - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the eight brokerages that are currently covering the stock, MarketBeat.com reports. Three analysts have rated the stock with a hold rating and five have given a buy rating to the company. The average 12 month target price among brokers that have updated their coverage on the stock in the last year is $19.8333.

TSLX has been the topic of a number of analyst reports. Keefe, Bruyette & Woods lifted their price objective 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. Royal Bank Of Canada decreased their target price on shares of Sixth Street Specialty Lending from $22.00 to $20.00 and set an "outperform" rating on the stock in a research note on Thursday, May 7th. Citizens Jmp lowered their price target on shares of Sixth Street Specialty Lending from $25.00 to $24.00 and set a "market outperform" rating on the stock in a report on Wednesday, April 22nd. Weiss Ratings reiterated a "hold (c-)" rating on shares of Sixth Street Specialty Lending in a research report on Thursday, August 13th. Finally, Truist Financial reduced their price objective on shares of Sixth Street Specialty Lending from $22.00 to $20.00 and set a "buy" rating for the company in a research note on Thursday, May 7th.

Sixth Street Specialty Lending Stock Up 0.8%

Shares of Sixth Street Specialty Lending stock opened at $18.59 on Wednesday. Sixth Street Specialty Lending has a 1 year low of $16.04 and a 1 year high of $24.79. The firm has a market cap of $1.77 billion, a price-to-earnings ratio of 19.57 and a beta of 0.59. The company has a 50-day moving average of $17.37 and a 200 day moving average of $18.07. 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 (NYSE:TSLX - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The financial services provider reported $0.43 earnings per share for the quarter, beating analysts' consensus estimates of $0.42 by $0.01. Sixth Street Specialty Lending had a return on equity of 11.33% and a net margin of 21.79%.The company had revenue of $97.84 million during the quarter, compared to analyst estimates of $95.28 million. During the same quarter last year, the company earned $0.56 EPS. As a group, sell-side analysts anticipate that Sixth Street Specialty Lending will post 1.73 earnings per share for the current fiscal year.

Sixth Street Specialty Lending Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th will be given a dividend of $0.42 per share. The ex-dividend date is Tuesday, September 15th. This represents a $1.68 annualized dividend and a dividend yield of 9.0%. Sixth Street Specialty Lending's dividend payout ratio (DPR) is presently 176.84%.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in TSLX. Quantum Portfolio Management LLC purchased a new stake in shares of Sixth Street Specialty Lending in the first quarter worth about $273,434,000. Strs Ohio grew its holdings in Sixth Street Specialty Lending by 101.8% during the 1st quarter. Strs Ohio now owns 4,347,710 shares of the financial services provider's stock valued at $79,911,000 after buying an additional 2,193,551 shares in the last quarter. Sound Income Strategies LLC grew its holdings 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 buying an additional 59,937 shares in the last quarter. Progeny 3 Inc. increased its stake 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. Finally, Bank of Montreal Can increased its stake in Sixth Street Specialty Lending by 419.5% in the 4th quarter. Bank of Montreal Can now owns 2,284,920 shares of the financial services provider's stock worth $49,628,000 after acquiring an additional 1,845,088 shares during the last quarter. Hedge funds and other institutional investors own 70.25% of the company's stock.

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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