Royal Bank Of Canada Has Lowered Expectations for Sixth Street Specialty Lending (NYSE:TSLX) Stock Price

Key Points

• Royal Bank of Canada lowered its price target on Sixth Street Specialty Lending (TSLX) from $22 to $20; analysts' average target is $20.43 with a "Moderate Buy" consensus, implying roughly a 12% upside versus the recent $17.81 close.
• Q1 results missed expectations — EPS $0.42 vs. $0.49 consensus and revenue $93.4M vs. ~$103M — a shortfall that has contributed to trimmed price targets and near-term selling pressure.
• The board declared a $0.42 quarterly dividend (annualized yield ~9.4%) and insiders increased holdings (VP Alan Waxman bought 200,000 shares), highlighting income appeal and insider confidence despite the earnings miss.

Sixth Street Specialty Lending (NYSE:TSLX - Get Free Report) had its target price lowered by equities researchers at Royal Bank Of Canada from $22.00 to $20.00 in a research note issued on Thursday,Benzinga reports. The brokerage currently has an "outperform" rating on the financial services provider's stock. Royal Bank Of Canada's target price suggests a potential upside of 12.31% from the stock's previous close.

Other equities analysts have also issued reports about the company. Keefe, Bruyette & Woods decreased their price objective on Sixth Street Specialty Lending from $23.00 to $22.00 and set an "outperform" rating for the company in a research report on Tuesday, February 17th. Wells Fargo & Company decreased their price objective on Sixth Street Specialty Lending from $20.00 to $19.00 and set an "overweight" rating for the company in a research report on Thursday. JPMorgan Chase & Co. decreased their price objective on Sixth Street Specialty Lending from $21.00 to $18.50 and set a "neutral" rating for the company in a research report on Friday, March 13th. Citizens Jmp decreased their price objective on Sixth Street Specialty Lending from $25.00 to $24.00 and set a "market outperform" rating for the company in a research report on Wednesday, April 22nd. Finally, Truist Financial decreased their price objective on Sixth Street Specialty Lending from $22.00 to $20.00 and set a "buy" rating for the company in a research report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, Sixth Street Specialty Lending currently has an average rating of "Moderate Buy" and an average target price of $20.43.

Sixth Street Specialty Lending Trading Down 0.6%

Shares of TSLX stock traded down $0.10 on Thursday, reaching $17.81. The company had a trading volume of 582,381 shares, compared to its average volume of 927,217. The company has a current ratio of 2.83, a quick ratio of 2.83 and a debt-to-equity ratio of 1.08. The stock has a market cap of $1.69 billion, a PE ratio of 15.50 and a beta of 0.65. The company has a 50-day moving average of $18.35 and a 200-day moving average of $20.39. 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 - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The financial services provider reported $0.42 EPS for the quarter, missing analysts' consensus estimates of $0.49 by ($0.07). Sixth Street Specialty Lending had a net margin of 25.25% and a return on equity of 11.79%. The company had revenue of $93.40 million during the quarter, compared to the consensus estimate of $103.14 million. During the same period last year, the company earned $0.58 earnings per share. On average, equities analysts forecast that Sixth Street Specialty Lending will post 1.97 earnings per share for the current year.

Insider Buying and Selling

In related news, VP Alan Waxman bought 200,000 shares of Sixth Street Specialty Lending stock in a transaction dated Monday, March 9th. The shares were bought at an average cost of $18.18 per share, with a total value of $3,636,000.00. Following the acquisition, the vice president owned 500,000 shares in the company, valued at $9,090,000. This trade represents a 66.67% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. Over the last quarter, insiders acquired 545,000 shares of company stock valued at $9,997,150. Corporate insiders own 3.83% of the company's stock.

Institutional Trading of Sixth Street Specialty Lending

Several institutional investors and hedge funds have recently modified their holdings of the business. Quantum Portfolio Management LLC bought a new stake in shares of Sixth Street Specialty Lending during the 1st quarter worth $273,434,000. Strs Ohio lifted its position in shares of Sixth Street Specialty Lending by 101.8% during the 1st quarter. Strs Ohio now owns 4,347,710 shares of the financial services provider's stock worth $79,911,000 after buying an additional 2,193,551 shares during the last quarter. Sound Income Strategies LLC raised its position in Sixth Street Specialty Lending by 2.4% in the first quarter. Sound Income Strategies LLC now owns 2,571,052 shares of the financial services provider's stock valued at $46,562,000 after purchasing an additional 59,937 shares during the last quarter. Van ECK Associates Corp raised its position in Sixth Street Specialty Lending by 18.0% in the third quarter. Van ECK Associates Corp now owns 2,529,187 shares of the financial services provider's stock valued at $57,817,000 after purchasing an additional 385,398 shares during the last quarter. Finally, Progeny 3 Inc. raised its position in Sixth Street Specialty Lending by 1.0% in the second quarter. Progeny 3 Inc. now owns 2,476,398 shares of the financial services provider's stock valued at $58,963,000 after purchasing an additional 23,451 shares during the last quarter. 70.25% of the stock is currently owned by institutional investors.

More Sixth Street Specialty Lending News

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

• Positive Sentiment: Analysts kept constructive ratings despite trimming targets — Truist cut its price target to $20 (still a "Buy," ~12% upside vs. current price). Truist lowers TSLX price target to $20
• Positive Sentiment: Wells Fargo lowered its price target to $19 but maintained an "Overweight" rating, signaling continued analyst conviction that shares have upside. Wells Fargo trims TSLX target to $19
• Positive Sentiment: Board declared a $0.42 quarterly dividend (annualized yield ~9.4% based on recent price), which supports income-oriented demand for the stock. TSLX declares $0.42 quarterly dividend
• Neutral Sentiment: Company released Q1 materials and held an earnings call — slide deck and transcript are available for investors who want details on portfolio composition and management commentary. Q1 2026 earnings call transcript
• Negative Sentiment: Q1 results missed expectations: EPS $0.42 vs. consensus $0.49 and revenue $93.4M vs. ~$103M expected — the miss is a clear near-term driver of downside. TSLX Q1 earnings and revenue miss
• Negative Sentiment: Coverage from Seeking Alpha flagged sharper deterioration: interest revenue down >19% YoY, rising levels of lower‑rated assets and a meaningful increase in worst-performing positions — that analysis and the reaction to the dividend announcement have driven selling pressure. Analysis: portfolio stress and revenue decline

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.

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