Sixth Street Specialty Lending (NYSE:TSLX) Given New $20.00 Price Target at Truist Financial

Key Points

• Truist cut its price target to $20 (from $22) while maintaining a "buy" rating, and multiple brokers have trimmed targets leaving a MarketBeat average target of $21.21 and an overall "Moderate Buy" consensus.
• Q earnings and revenue missed estimates: TSLX reported $0.42 EPS vs. $0.49 expected and $93.4M revenue vs. $103.14M expected, with shares trading around $17.79—below many analyst targets and recent moving averages.
• Insider buying noted: VP Alan Waxman purchased 45,000 shares at $18.47 in March (raising his holdings to 545,000), and insiders have bought 545,000 shares in the past 90 days, owning about 3.83% of the stock.

Sixth Street Specialty Lending (NYSE:TSLX - Get Free Report) had its price target reduced by investment analysts at Truist Financial from $22.00 to $20.00 in a research report issued on Thursday,Benzinga reports. The brokerage currently has a "buy" rating on the financial services provider's stock. Truist Financial's price objective would suggest a potential upside of 12.42% from the stock's previous close.

Several other research firms have also recently commented on TSLX. JPMorgan Chase & Co. lowered their target price on Sixth Street Specialty Lending from $21.00 to $18.50 and set a "neutral" rating for the company in a research note on Friday, March 13th. Citizens Jmp lowered 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. Weiss Ratings downgraded shares of Sixth Street Specialty Lending from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, February 20th. Wells Fargo & Company lowered their price target on shares of Sixth Street Specialty Lending from $20.00 to $19.00 and set an "overweight" rating for the company in a research report on Thursday. Finally, Keefe, Bruyette & Woods cut their price objective on shares of Sixth Street Specialty Lending from $23.00 to $22.00 and set an "outperform" rating on the stock in a report on Tuesday, February 17th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $21.21.

Sixth Street Specialty Lending Price Performance

NYSE:TSLX traded down $0.12 during mid-day trading on Thursday, reaching $17.79. 394,000 shares of the company were exchanged, compared to its average volume of 924,853. The company has a quick ratio of 2.83, a current 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 15.49 and a beta of 0.65. Sixth Street Specialty Lending has a 12 month low of $16.99 and a 12 month high of $25.17. The company has a fifty day moving average of $18.35 and a 200 day moving average of $20.39.

Sixth Street Specialty Lending (NYSE:TSLX - Get Free Report) last announced its earnings results on Tuesday, May 5th. The financial services provider reported $0.42 earnings per share for the quarter, missing analysts' consensus estimates of $0.49 by ($0.07). Sixth Street Specialty Lending had a return on equity of 11.79% and a net margin of 25.25%.The company had revenue of $93.40 million during the quarter, compared to the consensus estimate of $103.14 million. During the same period in the prior year, the firm posted $0.58 earnings per share. On average, research analysts anticipate that Sixth Street Specialty Lending will post 1.97 EPS for the current fiscal year.

Insider Buying and Selling

In other news, VP Alan Waxman bought 45,000 shares of the business's stock in a transaction on Tuesday, March 10th. The shares were bought at an average cost of $18.47 per share, for a total transaction of $831,150.00. Following the completion of the acquisition, the vice president owned 545,000 shares in the company, valued at approximately $10,066,150. This trade represents a 9.00% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders have purchased a total of 545,000 shares of company stock valued at $9,997,150 over the last ninety days. 3.83% of the stock is currently owned by corporate insiders.

Institutional Trading of Sixth Street Specialty Lending

Several hedge funds have recently added to or reduced their stakes in the business. Royal Bank of Canada boosted its holdings in shares of Sixth Street Specialty Lending by 8.0% in the first quarter. Royal Bank of Canada now owns 124,241 shares of the financial services provider's stock valued at $2,780,000 after buying an additional 9,230 shares during the period. Integrated Wealth Concepts LLC boosted its position in shares of Sixth Street Specialty Lending by 38.5% during the first quarter. Integrated Wealth Concepts LLC now owns 16,539 shares of the financial services provider's stock worth $370,000 after buying an additional 4,597 shares during the period. Invesco Ltd. grew its holdings in shares of Sixth Street Specialty Lending by 8.0% during the second quarter. Invesco Ltd. now owns 30,628 shares of the financial services provider's stock worth $729,000 after buying an additional 2,263 shares in the last quarter. Marshall Wace LLP grew its holdings in shares of Sixth Street Specialty Lending by 186.6% during the second quarter. Marshall Wace LLP now owns 75,811 shares of the financial services provider's stock worth $1,805,000 after buying an additional 49,362 shares in the last quarter. Finally, Glenview Trust co acquired a new stake in Sixth Street Specialty Lending in the 2nd quarter valued at approximately $231,000. Institutional investors and hedge funds own 70.25% of the company's stock.

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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