Sixth Street Specialty Lending (NYSE:TSLX) Sets New 1-Year High Following Earnings Beat

Sixth Street Specialty Lending, Inc. (NYSE:TSLX - Get Free Report)'s share price hit a new 52-week high during trading on Thursday following a stronger than expected earnings report. The stock traded as high as $22.48 and last traded at $22.47, with a volume of 238265 shares. The stock had previously closed at $22.20.

The financial services provider reported $0.61 earnings per share for the quarter, beating analysts' consensus estimates of $0.57 by $0.04. Sixth Street Specialty Lending had a return on equity of 13.55% and a net margin of 39.05%. The firm had revenue of $123.70 million during the quarter, compared to analyst estimates of $120.07 million.

Sixth Street Specialty Lending Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, March 31st. Investors of record on Friday, March 14th will be paid a $0.07 dividend. This is a positive change from Sixth Street Specialty Lending's previous quarterly dividend of $0.05. The ex-dividend date is Friday, March 14th. This represents a $0.28 dividend on an annualized basis and a yield of 1.22%. Sixth Street Specialty Lending's dividend payout ratio (DPR) is presently 89.32%.

Analyst Upgrades and Downgrades

A number of analysts recently commented on TSLX shares. LADENBURG THALM/SH SH lowered Sixth Street Specialty Lending from a "buy" rating to a "neutral" rating in a research note on Friday. Royal Bank of Canada reaffirmed an "outperform" rating and issued a $23.00 price target on shares of Sixth Street Specialty Lending in a research note on Tuesday, November 12th. Keefe, Bruyette & Woods decreased their price objective on Sixth Street Specialty Lending from $23.00 to $21.50 and set an "outperform" rating for the company in a report on Thursday, November 7th. Finally, Wells Fargo & Company increased their price objective on Sixth Street Specialty Lending from $21.00 to $23.00 and gave the stock an "overweight" rating in a report on Wednesday, January 29th. One analyst has rated the stock with a hold rating and five have issued a buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $22.33.

Hedge Funds Weigh In On Sixth Street Specialty Lending

Institutional investors and hedge funds have recently modified their holdings of the stock. Trust Co. of Vermont bought a new position in shares of Sixth Street Specialty Lending during the fourth quarter valued at $39,000. First Horizon Advisors Inc. increased its holdings in shares of Sixth Street Specialty Lending by 25.3% during the fourth quarter. First Horizon Advisors Inc. now owns 2,302 shares of the financial services provider's stock valued at $49,000 after acquiring an additional 465 shares in the last quarter. Quarry LP increased its holdings in shares of Sixth Street Specialty Lending by 378.3% during the third quarter. Quarry LP now owns 4,094 shares of the financial services provider's stock valued at $84,000 after acquiring an additional 3,238 shares in the last quarter. Signaturefd LLC increased its holdings in shares of Sixth Street Specialty Lending by 13.3% during the fourth quarter. Signaturefd LLC now owns 4,673 shares of the financial services provider's stock valued at $100,000 after acquiring an additional 550 shares in the last quarter. Finally, Atlas Capital Advisors Inc. bought a new position in shares of Sixth Street Specialty Lending during the fourth quarter valued at $109,000. 70.25% of the stock is currently owned by institutional investors.

Sixth Street Specialty Lending Price Performance

The company has a quick ratio of 2.50, a current ratio of 2.50 and a debt-to-equity ratio of 1.17. The firm has a fifty day moving average price of $21.60 and a two-hundred day moving average price of $21.03. The stock has a market capitalization of $2.14 billion, a P/E ratio of 11.15 and a beta of 1.06.

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.