Sixth Street Specialty Lending (NYSE:TSLX) Lowered to "Sell" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Sixth Street Specialty Lending (NYSE: TSLX) from hold to sell, adding to a more cautious tone around the stock.
• Several other analysts also cut price targets on TSLX, including RBC, Truist, KBW, Citizens JMP, and JPMorgan, although the broader consensus still sits at Moderate Buy with an average target of $20.29.
• The company recently missed Q1 earnings estimates, reporting $0.42 EPS versus $0.49 expected and revenue of $93.4 million versus $103.14 million expected, though an insider purchase by VP Alan Waxman and a $300 million note offering suggest continued confidence in the business and its balance sheet.

Sixth Street Specialty Lending (NYSE:TSLX - Get Free Report) was downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued to investors on Saturday.

A number of other research firms also recently commented on TSLX. Royal Bank Of Canada cut their target price on shares of Sixth Street Specialty Lending from $22.00 to $20.00 and set an "outperform" rating on the stock in a research report on Thursday. Truist Financial cut their target price on shares of Sixth Street Specialty Lending from $22.00 to $20.00 and set a "buy" rating on the stock in a research report on Thursday. Keefe, Bruyette & Woods cut their target price on shares of Sixth Street Specialty Lending from $21.00 to $18.50 and set an "outperform" rating on the stock in a research report on Thursday. Citizens Jmp cut their target price on shares of Sixth Street Specialty Lending from $25.00 to $24.00 and set a "market outperform" rating on the stock in a research report on Wednesday, April 22nd. Finally, JPMorgan Chase & Co. cut their target price on shares of Sixth Street Specialty Lending from $18.50 to $17.50 and set a "neutral" rating on the stock in a research report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat, Sixth Street Specialty Lending has an average rating of "Moderate Buy" and a consensus price target of $20.29.

Sixth Street Specialty Lending Stock Performance

Shares of Sixth Street Specialty Lending stock opened at $17.99 on Friday. The company has a current ratio of 3.39, a quick ratio of 2.83 and a debt-to-equity ratio of 1.17. The stock's fifty day moving average price is $18.35 and its 200-day moving average price is $20.36. The firm has a market cap of $1.71 billion, a P/E ratio of 15.64 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.

Sixth Street Specialty Lending (NYSE:TSLX - Get Free Report) last released its quarterly earnings data 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 11.92% and a net margin of 25.25%.The business had revenue of $93.40 million during the quarter, compared to analysts' expectations of $103.14 million. During the same period last year, the company earned $0.58 earnings per share. On average, equities research analysts expect that Sixth Street Specialty Lending will post 1.89 earnings per share for the current fiscal year.

Insider Activity

In other news, VP Alan Waxman acquired 200,000 shares of the business's stock in a transaction dated Monday, March 9th. The shares were purchased at an average price of $18.18 per share, with a total value of $3,636,000.00. Following the transaction, the vice president directly owned 500,000 shares in the company, valued at approximately $9,090,000. This 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 can be accessed through this hyperlink. Over the last quarter, insiders have purchased 545,000 shares of company stock valued at $9,997,150. 3.83% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the company. Chicago Partners Investment Group LLC grew its position in shares of Sixth Street Specialty Lending by 2.2% in the 3rd quarter. Chicago Partners Investment Group LLC now owns 23,369 shares of the financial services provider's stock worth $534,000 after buying an additional 505 shares during the last quarter. Lido Advisors LLC grew its position in shares of Sixth Street Specialty Lending by 1.2% in the 4th quarter. Lido Advisors LLC now owns 42,172 shares of the financial services provider's stock worth $958,000 after buying an additional 506 shares during the last quarter. Stratos Wealth Partners LTD. grew its position in shares of Sixth Street Specialty Lending by 5.6% in the 4th quarter. Stratos Wealth Partners LTD. now owns 10,047 shares of the financial services provider's stock worth $218,000 after buying an additional 532 shares during the last quarter. IFG Advisory LLC boosted its stake in Sixth Street Specialty Lending by 2.7% in the 3rd quarter. IFG Advisory LLC now owns 21,159 shares of the financial services provider's stock worth $484,000 after purchasing an additional 551 shares in the last quarter. Finally, Family Wealth Partners LLC boosted its stake in Sixth Street Specialty Lending by 2.5% in the 4th quarter. Family Wealth Partners LLC now owns 24,867 shares of the financial services provider's stock worth $540,000 after purchasing an additional 602 shares in the last quarter. Hedge funds and other institutional investors own 70.25% of the company's stock.

Key Stories Impacting Sixth Street Specialty Lending

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.

Sixth Street Specialty Lending Company Profile

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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