Sixth Street Specialty Lending (NYSE:TSLX) Sets New 1-Year Low – Should You Sell?
by Doug Wharley · The Cerbat GemSixth Street Specialty Lending, Inc. (NYSE:TSLX – Get Free Report)’s stock price reached a new 52-week low during mid-day trading on Friday . The company traded as low as $16.96 and last traded at $17.1660, with a volume of 277411 shares changing hands. The stock had previously closed at $17.36.
Wall Street Analyst Weigh In
Several analysts have weighed in on TSLX shares. Royal Bank Of Canada cut their target price on 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. Zacks Research downgraded Sixth Street Specialty Lending from a “hold” rating to a “strong sell” rating in a research note on Thursday, May 7th. Keefe, Bruyette & Woods cut their target price on Sixth Street Specialty Lending from $21.00 to $18.50 and set an “outperform” rating on the stock in a research note on Thursday, May 7th. Wall Street Zen downgraded Sixth Street Specialty Lending from a “hold” rating to a “sell” rating in a research note on Saturday, May 9th. Finally, Citizens Jmp cut their target price on Sixth Street Specialty Lending from $25.00 to $24.00 and set a “market outperform” rating on the stock in a research note on Wednesday, April 22nd. Five analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $19.83.
Read Our Latest Research Report on TSLX
Sixth Street Specialty Lending Stock Down 0.9%
The company has a debt-to-equity ratio of 1.17, a quick ratio of 3.39 and a current ratio of 3.39. The stock has a 50 day moving average price of $18.24 and a 200 day moving average price of $20.03. The company has a market cap of $1.63 billion, a P/E ratio of 14.96 and a beta of 0.65.
Sixth Street Specialty Lending (NYSE:TSLX – Get Free Report) last posted 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 return on equity of 11.92% and a net margin of 25.25%.The firm had revenue of $93.40 million during the quarter, compared to the consensus estimate of $103.14 million. During the same period in the prior year, the firm posted $0.58 EPS. Research analysts expect that Sixth Street Specialty Lending, Inc. will post 1.71 earnings per share for the current fiscal year.
Sixth Street Specialty Lending Increases Dividend
The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th will be paid a $0.42 dividend. The ex-dividend date of this dividend is Monday, June 15th. This represents a $1.68 dividend on an annualized basis and a dividend yield of 9.8%. This is a boost from Sixth Street Specialty Lending’s previous quarterly dividend of $0.01. Sixth Street Specialty Lending’s dividend payout ratio (DPR) is presently 160.00%.
Insiders Place Their Bets
In other news, VP Alan Waxman acquired 45,000 shares of the company’s stock in a transaction dated Tuesday, March 10th. The shares were bought at an average price of $18.47 per share, with a total value of $831,150.00. Following the purchase, the vice president owned 545,000 shares of the company’s stock, valued at approximately $10,066,150. This represents a 9.00% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, VP Ross Anthony Bruck acquired 8,000 shares of the company’s stock in a transaction dated Monday, May 11th. The stock was purchased at an average cost of $17.76 per share, for a total transaction of $142,080.00. Following the purchase, the vice president directly owned 18,250 shares in the company, valued at approximately $324,120. This represents a 78.05% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders bought a total of 553,000 shares of company stock worth $10,139,230 in the last three months. Company insiders own 3.83% of the company’s stock.
Hedge Funds Weigh In On Sixth Street Specialty Lending
A number of hedge funds have recently modified their holdings of TSLX. Quantum Portfolio Management LLC acquired a new position in shares of Sixth Street Specialty Lending in the 1st quarter worth $273,434,000. Strs Ohio grew its holdings in shares of Sixth Street Specialty Lending by 101.8% in the 1st quarter. Strs Ohio now owns 4,347,710 shares of the financial services provider’s stock worth $79,911,000 after acquiring an additional 2,193,551 shares during the last quarter. Bank of Montreal Can grew its holdings in shares of 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. OMERS ADMINISTRATION Corp grew 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 grew 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 and hedge funds.
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.