Sixth Street Specialty Lending (NYSE:TSLX) Reaches New 1-Year High – Should You Buy?

Sixth Street Specialty Lending, Inc. (NYSE:TSLX)’s stock price reached a new 52-week high during mid-day trading on Thursday . The company traded as high as $23.15 and last traded at $23.05, with a volume of 5403 shares trading hands. The stock had previously closed at $23.12.

Wall Street Analyst Weigh In

TSLX has been the subject of several analyst reports. JPMorgan Chase & Co. raised their target price on Sixth Street Specialty Lending from $22.50 to $23.00 and gave the stock an “overweight” rating in a research note on Tuesday. Royal Bank of Canada restated an “outperform” rating and issued a $23.00 price objective on shares of Sixth Street Specialty Lending in a research report on Tuesday, November 12th. LADENBURG THALM/SH SH lowered shares of Sixth Street Specialty Lending from a “buy” rating to a “neutral” rating in a report on Friday, February 14th. Wells Fargo & Company raised their price target on shares of Sixth Street Specialty Lending from $21.00 to $23.00 and gave the company an “overweight” rating in a report on Wednesday, January 29th. Finally, Truist Financial upped their price target on shares of Sixth Street Specialty Lending from $23.00 to $24.00 and gave the stock a “buy” rating in a report on Tuesday. One equities research analyst has rated the stock with a hold rating and six have issued a buy rating to the company. According to MarketBeat, Sixth Street Specialty Lending presently has a consensus rating of “Moderate Buy” and an average price target of $22.79.

Sixth Street Specialty Lending Price Performance

The stock has a market capitalization of $2.16 billion, a PE ratio of 11.36 and a beta of 1.06. The company has a debt-to-equity ratio of 1.18, a current ratio of 1.90 and a quick ratio of 1.90. The firm’s 50 day simple moving average is $21.67 and its 200 day simple moving average is $21.07.

Sixth Street Specialty Lending (NYSE:TSLX) last released its quarterly earnings data on Thursday, February 13th. The financial services provider reported $0.61 EPS for the quarter, topping the consensus estimate of $0.57 by $0.04. The firm had revenue of $123.70 million for the quarter, compared to the consensus estimate of $120.07 million. Sixth Street Specialty Lending had a return on equity of 13.47% and a net margin of 38.67%. As a group, equities analysts forecast that Sixth Street Specialty Lending, Inc. will post 2.2 EPS for the current fiscal year.

Sixth Street Specialty Lending Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, March 31st. Stockholders of record on Friday, March 14th will be paid a dividend of $0.07 per share. This represents a $0.28 annualized dividend and a dividend yield of 1.21%. This is an increase from Sixth Street Specialty Lending’s previous quarterly dividend of $0.05. The ex-dividend date of this dividend is Friday, March 14th. Sixth Street Specialty Lending’s dividend payout ratio is 90.64%.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Trust Co. of Vermont purchased a new stake in Sixth Street Specialty Lending in the fourth quarter worth $39,000. First Horizon Advisors Inc. raised its holdings in Sixth Street Specialty Lending by 25.3% in the 4th quarter. First Horizon Advisors Inc. now owns 2,302 shares of the financial services provider’s stock worth $49,000 after purchasing an additional 465 shares in the last quarter. Quarry LP lifted its position in shares of Sixth Street Specialty Lending by 378.3% in the 3rd quarter. Quarry LP now owns 4,094 shares of the financial services provider’s stock worth $84,000 after purchasing an additional 3,238 shares during the period. Signaturefd LLC boosted its stake in shares of Sixth Street Specialty Lending by 13.3% during the 4th quarter. Signaturefd LLC now owns 4,673 shares of the financial services provider’s stock valued at $100,000 after purchasing an additional 550 shares in the last quarter. Finally, Atlas Capital Advisors Inc. purchased a new position in shares of Sixth Street Specialty Lending during the fourth quarter valued at about $109,000. Hedge funds and other institutional investors own 70.25% of the company’s stock.

Sixth Street Specialty Lending Company Profile

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.