B. Riley Financial Reaffirms "Buy" Rating for Sixth Street Specialty Lending (NYSE:TSLX)

Key Points

• B. Riley reaffirmed its Buy rating on Sixth Street Specialty Lending, but cut its price target from $20 to $19, implying 6.9% upside from the prior close.
• Analysts’ consensus rating is Moderate Buy, with an average target of $19.71; six analysts rate the stock Buy and three rate it Hold.
• Quarterly results met the $0.44-per-share earnings estimate, while revenue of $98.96 million topped analysts’ expectations of $97.59 million.

Sixth Street Specialty Lending (NYSE:TSLX - Get Free Report)'s stock had its "buy" rating reissued by stock analysts at B. Riley Financial in a research note issued to investors on Friday, Benzinga reports. They presently have a $19.00 price objective on the financial services provider's stock, down from their prior price objective of $20.00. B. Riley Financial's price objective would suggest a potential upside of 6.92% from the stock's previous close.

TSLX has been the topic of a number of other research reports. Weiss Ratings lowered Sixth Street Specialty Lending from a "hold (c)" rating to a "hold (c-)" rating in a research report on Thursday, October 8th. Keefe, Bruyette & Woods raised their target price on Sixth Street Specialty Lending from $18.50 to $19.50 and gave the stock an "outperform" rating in a report on Monday, August 10th. Finally, Wall Street Zen upgraded Sixth Street Specialty Lending from a "sell" rating to a "hold" rating in a research report on Saturday, August 8th. Six equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $19.71.

Sixth Street Specialty Lending Price Performance

TSLX remained flat at $17.77 on Friday. 122,694 shares of the company were exchanged, compared to its average volume of 714,878. The firm has a market capitalization of $1.70 billion, a P/E ratio of 21.19 and a beta of 0.61. The company has a current ratio of 3.43, a quick ratio of 9.83 and a debt-to-equity ratio of 1.21. Sixth Street Specialty Lending has a one year low of $16.04 and a one year high of $22.84. The firm has a 50 day moving average price of $17.79 and a two-hundred day moving average price of $18.18.

Sixth Street Specialty Lending (NYSE:TSLX - Get Free Report) last issued its earnings results on Tuesday, November 3rd. The financial services provider reported $0.44 earnings per share for the quarter, hitting the consensus estimate of $0.44. Sixth Street Specialty Lending had a return on equity of 10.94% and a net margin of 19.81%. The business had revenue of $98.96 million during the quarter, compared to analysts' expectations of $97.59 million. On average, equities analysts forecast that Sixth Street Specialty Lending will post 1.74 earnings per share for the current year.

Institutional Trading of Sixth Street Specialty Lending

Hedge funds and other institutional investors have recently modified their holdings of the stock. Van ECK Associates Corp grew its holdings in Sixth Street Specialty Lending by 28.1% in the second quarter. Van ECK Associates Corp now owns 2,366,266 shares of the financial services provider's stock valued at $40,629,000 after purchasing an additional 519,456 shares during the last quarter. OMERS ADMINISTRATION Corp raised its stake in shares of Sixth Street Specialty Lending by 318.2% during the 1st quarter. OMERS ADMINISTRATION Corp now owns 1,961,813 shares of the financial services provider's stock worth $36,058,000 after buying an additional 1,492,704 shares during the last quarter. Callodine Capital Management LP raised its stake in shares of Sixth Street Specialty Lending by 2.5% during the 1st quarter. Callodine Capital Management LP now owns 1,129,520 shares of the financial services provider's stock worth $20,761,000 after buying an additional 27,528 shares during the last quarter. Tectonic Advisors LLC boosted its position in shares of Sixth Street Specialty Lending by 16.0% in the 3rd quarter. Tectonic Advisors LLC now owns 980,705 shares of the financial services provider's stock worth $17,672,000 after buying an additional 135,502 shares in the last quarter. Finally, Rivernorth Capital Management LLC boosted its position in shares of Sixth Street Specialty Lending by 233.2% in the 2nd quarter. Rivernorth Capital Management LLC now owns 969,599 shares of the financial services provider's stock worth $16,648,000 after buying an additional 678,646 shares in the last quarter. 70.25% of the stock is owned by institutional investors and hedge funds.

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.

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