Sixth Street Specialty Lending, Inc. (NYSE:TSLX) Stock Has Consensus Price Target of $19.83

Sixth Street Specialty Lending, Inc. (NYSE:TSLX) has received a consensus rating of “Moderate Buy” from the eight research firms that are covering the firm, Marketbeat Ratings reports. Three equities research analysts have rated the stock with a hold rating and five have issued a buy rating on the company. The average 12 month target price among brokerages that have issued ratings on the stock in the last year is $19.83.

TSLX has been the topic of several recent research reports. Wall Street Zen raised Sixth Street Specialty Lending from a “sell” rating to a “hold” rating in a research note on Saturday, August 8th. Weiss Ratings downgraded Sixth Street Specialty Lending from a “hold (c)” rating to a “hold (c-)” rating in a research note on Thursday, October 8th. Finally, Keefe, Bruyette & Woods boosted their price objective on Sixth Street Specialty Lending from $18.50 to $19.50 and gave the company an “outperform” rating in a research note on Monday, August 10th.

Sixth Street Specialty Lending News Roundup

Here are the key news stories impacting Sixth Street Specialty Lending this week:

• Positive Sentiment: Third-quarter revenue was $98.96 million, above analysts’ $97.59 million estimate. Earnings of $0.44 per share beat Zacks’ $0.43 forecast, though they matched the broader $0.44 consensus. Zacks earnings report
• Positive Sentiment: TSLX declared a $0.42-per-share fourth-quarter base dividend and a $0.01 supplemental dividend. The base payout equals $1.68 annualized, a 9.3% yield based on the cited report—an attractive feature for income investors. Dividend and earnings announcement
• Neutral Sentiment: A Seeking Alpha article characterizes TSLX as a high-yield BDC that could serve as an anchor in a volatile market. This is an investor viewpoint, not a company announcement. Seeking Alpha analysis
• Negative Sentiment: Despite the revenue beat, quarterly EPS declined from $0.53 a year earlier to $0.44, signaling weaker year-over-year earnings and potentially tempering the positive results. Zacks earnings report

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. IFP Advisors Inc grew its holdings in Sixth Street Specialty Lending by 30.6% during the 2nd quarter. IFP Advisors Inc now owns 305,604 shares of the financial services provider’s stock valued at $5,247,000 after buying an additional 71,693 shares in the last quarter. BlackRock Inc. bought a new stake in Sixth Street Specialty Lending in the 2nd quarter worth approximately $7,484,000. Bank of America Corp DE bought a new stake in Sixth Street Specialty Lending in the 2nd quarter worth approximately $13,126,000. Melia Wealth LLC bought a new stake in shares of Sixth Street Specialty Lending in the 2nd quarter worth about $8,350,000. Finally, Lazard Asset Management LLC purchased a new stake in shares of Sixth Street Specialty Lending during the 1st quarter valued at about $2,809,000. 70.25% of the stock is owned by hedge funds and other institutional investors.

Sixth Street Specialty Lending Price Performance

Shares of Sixth Street Specialty Lending stock opened at $17.86 on Monday. The stock has a market cap of $1.70 billion, a P/E ratio of 21.27 and a beta of 0.61. The company has a debt-to-equity ratio of 1.24, a quick ratio of 9.83 and a current ratio of 9.83. The stock’s fifty day moving average is $17.81 and its 200 day moving average is $18.20. Sixth Street Specialty Lending has a one year low of $16.04 and a one year high of $22.84.

Sixth Street Specialty Lending (NYSE:TSLX) last released its quarterly earnings results on Tuesday, November 3rd. The financial services provider reported $0.44 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.44. The business had revenue of $98.96 million during the quarter, compared to analyst estimates of $97.59 million. Sixth Street Specialty Lending had a return on equity of 10.91% and a net margin of 19.81%. Sell-side analysts anticipate that Sixth Street Specialty Lending will post 1.74 earnings per share for the current year.

Sixth Street Specialty Lending Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 31st. Shareholders of record on Tuesday, December 15th will be paid a dividend of $0.42 per share. The ex-dividend date is Tuesday, December 15th. This represents a $1.68 dividend on an annualized basis and a yield of 9.4%. Sixth Street Specialty Lending’s dividend payout ratio (DPR) is presently 200.00%.

About Sixth Street Specialty Lending

Sixth Street Specialty Lending, Inc is a business development company (BDC) that provides financing to middle-market companies. The company primarily invests in privately negotiated debt and equity investments, with a focus on supporting businesses that may have limited access to traditional bank financing.

Its investment portfolio generally includes first-lien and second-lien loans, unitranche financing, mezzanine debt, and related equity investments. Sixth Street Specialty Lending seeks to generate income through interest payments and other investment returns while providing customized financing solutions for acquisitions, recapitalizations, refinancings, growth initiatives, and other corporate purposes.

The company was formed in 2011 and is externally managed by an affiliate of Sixth Street, an investment firm focused on credit and other asset classes.