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

Key Points

• Analysts recommend a consensus of "Buy" for Sixth Street Specialty Lending, with a 1-year price target averaging $23.28.
• The company recently reported earnings per share of $0.56, exceeding estimates, and announced a $0.46 per share dividend with a yield of 770.0%.
• Large investors are actively acquiring shares, with institutional ownership at 70.25% of the company's stock.

Shares of Sixth Street Specialty Lending, Inc. (NYSE:TSLX - Get Free Report) have earned an average rating of "Buy" from the nine brokerages that are presently covering the firm, Marketbeat Ratings reports. One research analyst has rated the stock with a hold recommendation, seven have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1 year price objective among analysts that have covered the stock in the last year is $23.2778.

Several equities research analysts recently weighed in on the company. JPMorgan Chase & Co. reduced their price target on Sixth Street Specialty Lending from $23.00 to $21.50 and set an "overweight" rating on the stock in a research note on Thursday, April 24th. Raymond James Financial cut their target price on Sixth Street Specialty Lending from $24.00 to $23.00 and set an "outperform" rating on the stock in a research note on Friday, May 2nd. Wells Fargo & Company increased their target price on Sixth Street Specialty Lending from $21.00 to $24.00 and gave the stock an "overweight" rating in a research note on Friday, August 1st. B. Riley started coverage on Sixth Street Specialty Lending in a research note on Tuesday, May 13th. They issued a "buy" rating and a $23.00 target price on the stock. Finally, JMP Securities increased their target price on Sixth Street Specialty Lending from $24.00 to $25.00 and gave the stock a "market outperform" rating in a research note on Wednesday, August 6th.

Institutional Investors Weigh In On Sixth Street Specialty Lending

Several institutional investors have recently modified their holdings of the business. Texas Yale Capital Corp. boosted its position in shares of Sixth Street Specialty Lending by 1.4% during the second quarter. Texas Yale Capital Corp. now owns 35,500 shares of the financial services provider's stock valued at $845,000 after buying an additional 500 shares during the last quarter. Cornerstone Wealth Management LLC boosted its position in shares of Sixth Street Specialty Lending by 1.2% during the first quarter. Cornerstone Wealth Management LLC now owns 46,732 shares of the financial services provider's stock valued at $1,046,000 after buying an additional 548 shares during the last quarter. Mallini Complete Financial Planning LLC boosted its position in shares of Sixth Street Specialty Lending by 4.5% during the first quarter. Mallini Complete Financial Planning LLC now owns 13,028 shares of the financial services provider's stock valued at $292,000 after buying an additional 558 shares during the last quarter. Parallel Advisors LLC boosted its position in shares of Sixth Street Specialty Lending by 4.3% during the first quarter. Parallel Advisors LLC now owns 20,708 shares of the financial services provider's stock valued at $463,000 after buying an additional 848 shares during the last quarter. Finally, Mirador Capital Partners LP boosted its position in shares of Sixth Street Specialty Lending by 4.4% during the second quarter. Mirador Capital Partners LP now owns 21,920 shares of the financial services provider's stock valued at $522,000 after buying an additional 919 shares during the last quarter. 70.25% of the stock is owned by hedge funds and other institutional investors.

Sixth Street Specialty Lending Stock Down 0.1%

TSLX stock traded down $0.04 during midday trading on Friday, hitting $24.17. The stock had a trading volume of 165,019 shares, compared to its average volume of 473,028. The firm has a market cap of $2.28 billion, a price-to-earnings ratio of 12.03 and a beta of 0.84. The business has a 50-day moving average of $23.84 and a two-hundred day moving average of $22.59. Sixth Street Specialty Lending has a 52-week low of $18.58 and a 52-week high of $25.17. The company has a debt-to-equity ratio of 1.07, a current ratio of 3.79 and a quick ratio of 3.79.

Sixth Street Specialty Lending (NYSE:TSLX - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The financial services provider reported $0.56 earnings per share for the quarter, topping the consensus estimate of $0.53 by $0.03. The company had revenue of $115.00 million for the quarter, compared to analysts' expectations of $110.42 million. Sixth Street Specialty Lending had a return on equity of 13.47% and a net margin of 39.56%. During the same period in the prior year, the firm earned $0.58 earnings per share. As a group, equities research analysts forecast that Sixth Street Specialty Lending will post 2.19 earnings per share for the current fiscal year.

Sixth Street Specialty Lending Increases Dividend

The firm also recently declared a -- dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Monday, September 15th will be issued a dividend of $0.46 per share. The ex-dividend date of this dividend is Monday, September 15th. This is an increase from Sixth Street Specialty Lending's previous -- dividend of $0.06. This represents a dividend yield of 770.0%. Sixth Street Specialty Lending's dividend payout ratio is currently 91.54%.

About Sixth Street Specialty Lending

Sixth Street Specialty Lending, Inc NYSE: TSLX is a business development company. The fund provides senior secured loans (first-lien, second-lien, and unitranche), unsecured loans, mezzanine debt, and investments in corporate bonds and equity securities and structured products, non-control structured equity, and common equity with a focus on co-investments for organic growth, acquisitions, market or product expansion, restructuring initiatives, recapitalizations, and refinancing.