Sixth Street Specialty Lending (TSLX) Stock Price, News & Analysis

Company Overview

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. The fund invests in business services, software & technology, healthcare, energy, consumer & retail, manufacturing, industrials, royalty related businesses, education, and specialty finance. It seeks to finance and lending to middle market companies principally located in the United States. The fund invests in companies with enterprise value between $50 million and $1 billion or more and EBITDA between $10 million and $250 million. The transaction size is between $15 million and $350 million. The fund invests across the spectrum of the capital structure and can arrange syndicated transactions of up to $500 million and hold sizeable positions within its credits.

Key Stats

• Today's Range: $21.27 to $21.60
• 50-Day Range: $19.80 to $21.48
• 52-Week Range: $19.50 to $22.35
• Volume: 110,389 shs
• Average Volume: 347,560 shs
• Market Capitalization: $1.99 billion
• P/E Ratio: 10.35
• Dividend Yield: 8.63%
• Price Target: $22.00
• Consensus Rating: Buy

Sixth Street Specialty Lending Stock Analysis - MarketRank™

Sixth Street Specialty Lending scored higher than 37% of companies evaluated by MarketBeat, and ranked 807th out of 945 stocks in the finance sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 1.5 / 5
• Analyst Rating: Buy

Consensus Rating

Sixth Street Specialty Lending has received a consensus rating of Buy. The company's average rating score is 3.00, and is based on 6 buy ratings, no hold ratings, and no sell ratings.

Amount of Analyst Coverage

Sixth Street Specialty Lending has only been the subject of 4 research reports in the past 90 days.

Earnings and Valuation

• Score: 1.3 / 5
• Proj. Earnings Growth: -3.88%

Earnings Growth

Earnings for Sixth Street Specialty Lending are expected to decrease by -3.88% in the coming year, from $2.32 to $2.23 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Sixth Street Specialty Lending is 10.40, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 122.99.

Price to Earnings Ratio vs. Sector

The P/E ratio of Sixth Street Specialty Lending is 10.40, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 44.94.

Price to Book Value per Share Ratio

Sixth Street Specialty Lending has a P/B Ratio of 1.25. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

Short Interest

• Score: 3.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

0.95% of the outstanding shares of Sixth Street Specialty Lending have been sold short.

Short Interest Ratio / Days to Cover

Sixth Street Specialty Lending has a short interest ratio ("days to cover") of 2.9, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Sixth Street Specialty Lending has recently increased by 21.29%, indicating that investor sentiment is decreasing significantly.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Leadership

Sixth Street Specialty Lending is a leading dividend payer. It pays a dividend yield of 8.57%, putting its dividend yield in the top 25% of dividend-paying stocks.

Dividend Growth

Sixth Street Specialty Lending does not have a long track record of dividend growth.

Dividend Coverage

The dividend payout ratio of Sixth Street Specialty Lending is 89.32%. Payout ratios above 75% are not desirable because they may not be sustainable.

Dividend Sustainability

Based on EPS estimates, Sixth Street Specialty Lending will have a dividend payout ratio of 82.51% in the coming year. This indicates that Sixth Street Specialty Lending may not be able to sustain their current dividend.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

0.95% of the outstanding shares of Sixth Street Specialty Lending have been sold short.

Short Interest Ratio / Days to Cover

Sixth Street Specialty Lending has a short interest ratio ("days to cover") of 2.9, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Sixth Street Specialty Lending has recently increased by 21.29%, indicating that investor sentiment is decreasing significantly.

News and Social Media

• Score: 2.3 / 5
• News Sentiment: 0.09

News Sentiment

Sixth Street Specialty Lending has a news sentiment score of 0.09. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a lower news sentiment than the 0.82 average news sentiment score of Finance companies.

News Coverage This Week

MarketBeat has tracked 23 news articles for Sixth Street Specialty Lending this week, compared to 3 articles on an average week.

Search Interest

Only 7 people have searched for TSLX on MarketBeat in the last 30 days. This is a decrease of 0% compared to the previous 30 days.

MarketBeat Follows

73 people have added Sixth Street Specialty Lending to their MarketBeat watchlist in the last 30 days.

Company Ownership

• Score: 1.7 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Sixth Street Specialty Lending insiders have not sold or bought any company stock.

Percentage Held by Insiders

Only 3.30% of the stock of Sixth Street Specialty Lending is held by insiders.

Percentage Held by Institutions

70.25% of the stock of Sixth Street Specialty Lending is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

TSLX Stock Analysis - Frequently Asked Questions

How have TSLX shares performed this year?

Sixth Street Specialty Lending's stock was trading at $21.60 at the beginning of 2024. Since then, TSLX shares have decreased by 0.8% and is now trading at $21.43.
View the best growth stocks for 2024 here.

How were Sixth Street Specialty Lending's earnings last quarter?

Sixth Street Specialty Lending, Inc. (NYSE:TSLX) released its earnings results on Tuesday, November, 5th. The financial services provider reported $0.57 earnings per share for the quarter, hitting analysts' consensus estimates of $0.57. The financial services provider had revenue of $119.22 million for the quarter, compared to the consensus estimate of $119.85 million. Sixth Street Specialty Lending had a net margin of 39.05% and a trailing twelve-month return on equity of 13.55%.

Who are Sixth Street Specialty Lending's major shareholders?

Top institutional shareholders of Sixth Street Specialty Lending include Van ECK Associates Corp (2.47%), Progeny 3 Inc. (2.41%), Sound Income Strategies LLC (2.35%) and Two Sigma Advisers LP (0.93%). Insiders that own company stock include Judy S Slotkin, Hurley Doddy, Michael Graf, Ian Simmonds, Jennifer Gordon, Anton Brett and Richard A Higginbotham.
View institutional ownership trends.

How do I buy shares of Sixth Street Specialty Lending?

Shares of TSLX stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

What other stocks do shareholders of Sixth Street Specialty Lending own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Sixth Street Specialty Lending investors own include Ares Capital (ARCC), Hercules Capital (HTGC), Enterprise Products Partners (EPD), Johnson & Johnson (JNJ), Main Street Capital (MAIN), Annaly Capital Management (NLY) and AT&T (T).

Company Calendar

• Last Earnings: 11/05/2024
• Ex-Dividend for 12/20 Dividend: 11/29/2024
• Today: 12/03/2024
• Ex-Dividend for 12/31 Dividend: 12/16/2024
• Dividend Payable: 12/20/2024
• Dividend Payable: 12/31/2024
• Fiscal Year End: 12/31/2024
• Next Earnings (Estimated): 2/20/2025

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Finance
• Industry: Investors, not elsewhere classified
• Sub-Industry: N/A
• Current Symbol: NYSE:TSLX
• CUSIP: N/A
• CIK: 1508655
• Web: www.tpgspecialtylending.com
• Phone: (212) 601-4700
• Fax: 469-621-3002
• Employees: N/A
• Year Founded: N/A

Price Target and Rating

• Average Stock Price Target: $22.00
• High Stock Price Target: $23.00
• Low Stock Price Target: $21.00
• Potential Upside/Downside: +2.7%
• Consensus Rating: Buy
• Rating Score (0-4): 3.00
• Research Coverage: 6 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $2.06
• Trailing P/E Ratio: 10.40
• Forward P/E Ratio: 9.24
• P/E Growth: N/A
• Net Income: $196.40 million
• Net Margins: 39.05%
• Pretax Margin: 46.09%
• Return on Equity: 13.55%
• Return on Assets: 6.20%

Debt

• Debt-to-Equity Ratio: 1.17
• Current Ratio: 2.50
• Quick Ratio: 2.50

Sales & Book Value

• Annual Sales: $438.09 million
• Price / Sales: 4.56
• Cash Flow: $2.16 per share
• Price / Cash Flow: 9.94
• Book Value: $17.12 per share
• Price / Book: 1.25

Miscellaneous

• Outstanding Shares: 93,320,000
• Free Float: 90,239,000
• Market Cap: $2.00 billion
• Optionable: Optionable
• Beta: 1.06