Sixth Street Specialty Lending (NYSE:TSLX) Shares Gap Down Following Weak Earnings

Sixth Street Specialty Lending, Inc. (NYSE:TSLX)’s stock price gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $19.60, but opened at $18.15. Sixth Street Specialty Lending shares last traded at $17.85, with a volume of 544,354 shares.

The financial services provider reported $0.42 EPS for the quarter, missing the consensus estimate of $0.49 by ($0.07). The business had revenue of $93.40 million for the quarter, compared to analyst estimates of $103.14 million. Sixth Street Specialty Lending had a return on equity of 12.71% and a net margin of 37.99%.During the same period in the previous year, the business posted $0.58 EPS.

Sixth Street Specialty Lending Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 15th will be paid a dividend of $0.42 per share. This represents a $1.68 annualized dividend and a yield of 9.5%. The ex-dividend date of this dividend is Monday, June 15th. 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 101.66%.

Wall Street Analyst Weigh In

Several analysts recently commented on the company. Wells Fargo & Company dropped their price objective on Sixth Street Specialty Lending from $22.00 to $20.00 and set an “overweight” rating on the stock in a research note on Tuesday, February 17th. Citizens Jmp lowered their target price on Sixth Street Specialty Lending from $25.00 to $24.00 and set a “market outperform” rating for the company in a report on Wednesday, April 22nd. Weiss Ratings cut Sixth Street Specialty Lending from a “buy (b-)” rating to a “hold (c+)” rating in a report on Friday, February 20th. Truist Financial lowered their target price on Sixth Street Specialty Lending from $24.00 to $22.00 and set a “buy” rating for the company in a report on Tuesday, February 17th. Finally, JPMorgan Chase & Co. lowered their target price on Sixth Street Specialty Lending from $21.00 to $18.50 and set a “neutral” rating for the company in a report on Friday, March 13th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $21.64.

Insider Buying and Selling at Sixth Street Specialty Lending

In related news, VP Alan Waxman acquired 200,000 shares of the firm’s stock in a transaction dated Monday, March 9th. The stock was bought at an average price of $18.18 per share, for a total transaction of $3,636,000.00. Following the acquisition, the vice president directly owned 500,000 shares of the company’s stock, valued at approximately $9,090,000. The trade was a 66.67% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. In the last three months, insiders bought 545,000 shares of company stock valued at $9,997,150. 3.83% of the stock is owned by company insiders.

Institutional Investors Weigh In On Sixth Street Specialty Lending

Hedge funds have recently bought and sold shares of the company. Caprock Group LLC bought a new stake in shares of Sixth Street Specialty Lending during the third quarter worth $1,478,000. Sound Income Strategies LLC grew its stake in shares of Sixth Street Specialty Lending by 4.5% during the fourth quarter. Sound Income Strategies LLC now owns 2,511,115 shares of the financial services provider’s stock worth $55,998,000 after buying an additional 108,708 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. grew its stake in shares of Sixth Street Specialty Lending by 25.8% during the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 662,896 shares of the financial services provider’s stock worth $15,154,000 after buying an additional 135,789 shares during the last quarter. Tred Avon Family Wealth LLC acquired a new position in shares of Sixth Street Specialty Lending during the third quarter worth $1,028,000. Finally, Van ECK Associates Corp lifted its holdings in shares of Sixth Street Specialty Lending by 18.0% during the third quarter. Van ECK Associates Corp now owns 2,529,187 shares of the financial services provider’s stock worth $57,817,000 after purchasing an additional 385,398 shares during the period. 70.25% of the stock is currently owned by institutional investors and hedge funds.

Sixth Street Specialty Lending Trading Down 9.6%

The company has a market cap of $1.68 billion, a price-to-earnings ratio of 9.79 and a beta of 0.65. The business’s fifty day moving average price is $18.35 and its 200 day moving average price is $20.41. The company has a debt-to-equity ratio of 1.08, a current ratio of 2.83 and a quick ratio of 2.83.

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.