Sixth Street Specialty Lending (NYSE:TSLX) Rating Lowered to “Strong Sell” at Zacks Research

Sixth Street Specialty Lending (NYSE:TSLX) was downgraded by analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report issued on Thursday,Zacks.com reports.

Several other equities analysts have also recently commented on TSLX. Weiss Ratings cut shares of Sixth Street Specialty Lending from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, February 20th. Truist Financial dropped their target price on shares of Sixth Street Specialty Lending from $22.00 to $20.00 and set a “buy” rating for the company in a research report on Thursday. Keefe, Bruyette & Woods lowered their price target on Sixth Street Specialty Lending from $21.00 to $18.50 and set an “outperform” rating for the company in a report on Thursday. Royal Bank Of Canada lowered their price target on Sixth Street Specialty Lending from $22.00 to $20.00 and set an “outperform” rating for the company in a report on Thursday. Finally, Wall Street Zen cut Sixth Street Specialty Lending from a “hold” rating to a “sell” rating in a report on Saturday. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Sixth Street Specialty Lending presently has an average rating of “Moderate Buy” and an average target price of $20.29.

Sixth Street Specialty Lending Price Performance

Shares of NYSE:TSLX opened at $17.99 on Thursday. The firm has a 50 day moving average of $18.35 and a 200-day moving average of $20.36. The stock has a market capitalization of $1.71 billion, a PE ratio of 15.64 and a beta of 0.65. The company has a current ratio of 3.39, a quick ratio of 2.83 and a debt-to-equity ratio of 1.17. Sixth Street Specialty Lending has a 12 month low of $16.99 and a 12 month high of $25.17.

Sixth Street Specialty Lending (NYSE:TSLX) last issued its earnings results on Tuesday, May 5th. The financial services provider reported $0.42 EPS for the quarter, missing the consensus estimate of $0.49 by ($0.07). The firm had revenue of $93.40 million during the quarter, compared to analyst estimates of $103.14 million. Sixth Street Specialty Lending had a net margin of 25.25% and a return on equity of 11.92%. During the same quarter in the previous year, the firm posted $0.58 earnings per share. On average, equities research analysts predict that Sixth Street Specialty Lending will post 1.89 EPS for the current fiscal year.

Insider Transactions at Sixth Street Specialty Lending

In related news, VP Alan Waxman acquired 200,000 shares of the stock in a transaction that occurred on Monday, March 9th. The stock was acquired at an average cost of $18.18 per share, for a total transaction of $3,636,000.00. Following the transaction, the vice president directly owned 500,000 shares in the company, valued at $9,090,000. This trade represents a 66.67% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. In the last ninety days, insiders have purchased 545,000 shares of company stock worth $9,997,150. 3.83% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Sixth Street Specialty Lending

Institutional investors have recently added to or reduced their stakes in the stock. Harbor Investment Advisory LLC increased its holdings in Sixth Street Specialty Lending by 673.2% in the 4th quarter. Harbor Investment Advisory LLC now owns 1,732 shares of the financial services provider’s stock worth $38,000 after purchasing an additional 1,508 shares in the last quarter. Advisory Services Network LLC acquired a new position in Sixth Street Specialty Lending in the 3rd quarter worth about $75,000. Fifth Third Bancorp acquired a new position in Sixth Street Specialty Lending in the 1st quarter worth about $63,000. Redmont Wealth Advisors LLC acquired a new position in Sixth Street Specialty Lending in the 3rd quarter worth about $79,000. Finally, State of Alaska Department of Revenue acquired a new position in Sixth Street Specialty Lending in the 3rd quarter worth about $98,000. 70.25% of the stock is currently owned by institutional investors and hedge funds.

Sixth Street Specialty Lending News Roundup

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

• Positive Sentiment: TSLX priced a $300 million offering of 5.650% unsecured notes due 2031, with proceeds expected to be used to pay down existing debt. The move may improve its liability profile and support balance-sheet flexibility. Article Title
• Positive Sentiment: Several firms still see upside despite trimming targets: RBC kept an outperform rating, KBW maintained outperform, Truist kept a buy rating, and Wells Fargo kept overweight. These reports suggest analysts still view TSLX as undervalued even after lowering price targets.
• Neutral Sentiment: The company’s Q1 earnings call highlighted both a net asset value hit and some upside, suggesting investors are still digesting mixed fundamentals rather than reacting to one clear surprise. Article Title
• Negative Sentiment: JPMorgan cut its price target on TSLX to $17.50 and maintained a neutral rating, while other firms also reduced targets. The lower estimates likely added pressure to the stock and reflect more cautious near-term expectations.

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.