Sixth Street Specialty Lending (NYSE:TSLX) Hits New 52-Week Low - Here's What Happened

Key Points

• Sixth Street Specialty Lending (NYSE:TSLX) hit a new 52-week low, trading as low as $16.37 during the session amid relatively light volume.
• Recent analyst actions have been mixed but generally cautious, including multiple price target cuts and downgrades; the stock still carries a Moderate Buy consensus with a target price of $19.83.
• The company reported weaker-than-expected Q1 earnings ($0.42 EPS vs. $0.49 expected) and also raised its quarterly dividend to $0.42 per share, implying a high annualized yield of about 10.2%.

Sixth Street Specialty Lending, Inc. (NYSE:TSLX - Get Free Report) hit a new 52-week low during mid-day trading on Thursday . The stock traded as low as $16.37 and last traded at $16.6110, with a volume of 63708 shares. The stock had previously closed at $16.59.

Wall Street Analysts Forecast Growth

TSLX has been the subject of several recent research reports. Weiss Ratings downgraded shares of Sixth Street Specialty Lending from a "hold (c)" rating to a "hold (c-)" rating in a research note on Monday, May 18th. Keefe, Bruyette & Woods reduced their target price on shares of Sixth Street Specialty Lending from $21.00 to $18.50 and set an "outperform" rating for the company in a research note on Thursday, May 7th. Zacks Research downgraded shares of Sixth Street Specialty Lending from a "hold" rating to a "strong sell" rating in a research note on Thursday, May 7th. Royal Bank Of Canada reduced their target price on shares of Sixth Street Specialty Lending from $22.00 to $20.00 and set an "outperform" rating for the company in a research note on Thursday, May 7th. Finally, Wall Street Zen downgraded shares of Sixth Street Specialty Lending from a "hold" rating to a "sell" rating in a research note on Saturday, May 9th. Five research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Sixth Street Specialty Lending has an average rating of "Moderate Buy" and a consensus target price of $19.83.

Sixth Street Specialty Lending Price Performance

The business's 50-day moving average price is $17.91 and its 200 day moving average price is $19.47. The company has a quick ratio of 3.39, a current ratio of 3.39 and a debt-to-equity ratio of 1.17. The company has a market capitalization of $1.57 billion, a P/E ratio of 14.38 and a beta of 0.60.

Sixth Street Specialty Lending (NYSE:TSLX - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The financial services provider reported $0.42 EPS for the quarter, missing analysts' consensus estimates of $0.49 by ($0.07). Sixth Street Specialty Lending had a net margin of 25.25% and a return on equity of 11.92%. The firm had revenue of $93.40 million during the quarter, compared to the consensus estimate of $103.14 million. During the same quarter last year, the business posted $0.58 earnings per share. Analysts anticipate that Sixth Street Specialty Lending, Inc. will post 1.71 EPS for the current fiscal year.

Sixth Street Specialty Lending Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th will be given a dividend of $0.42 per share. The ex-dividend date is Monday, June 15th. This is a boost from Sixth Street Specialty Lending's previous quarterly dividend of $0.01. This represents a $1.68 annualized dividend and a yield of 10.2%. Sixth Street Specialty Lending's dividend payout ratio (DPR) is presently 146.09%.

Insider Transactions at Sixth Street Specialty Lending

In related news, VP Ross Anthony Bruck bought 8,000 shares of the company's stock in a transaction on Monday, May 11th. The stock was acquired at an average cost of $17.76 per share, for a total transaction of $142,080.00. Following the completion of the transaction, the vice president directly owned 18,250 shares in the company, valued at $324,120. This trade represents a 78.05% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 3.83% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Sixth Street Specialty Lending

Several hedge funds have recently bought and sold shares of TSLX. Quantum Portfolio Management LLC bought a new stake in Sixth Street Specialty Lending during the first quarter valued at approximately $273,434,000. Strs Ohio lifted its position in Sixth Street Specialty Lending by 101.8% during the first quarter. Strs Ohio now owns 4,347,710 shares of the financial services provider's stock valued at $79,911,000 after purchasing an additional 2,193,551 shares during the last quarter. Bank of Montreal Can lifted its position in 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 purchasing an additional 1,845,088 shares during the last quarter. OMERS ADMINISTRATION Corp lifted its holdings in shares of Sixth Street Specialty Lending by 318.2% in the 1st quarter. OMERS ADMINISTRATION Corp now owns 1,961,813 shares of the financial services provider's stock worth $36,058,000 after acquiring an additional 1,492,704 shares during the last quarter. Finally, Van ECK Associates Corp lifted its holdings in shares of Sixth Street Specialty Lending by 18.0% in the 3rd quarter. Van ECK Associates Corp now owns 2,529,187 shares of the financial services provider's stock worth $57,817,000 after acquiring an additional 385,398 shares during the last quarter. 70.25% of the stock is currently owned by institutional investors.

About Sixth Street Specialty Lending

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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