Sixth Street Specialty Lending (NYSE:TSLX) Stock Price Expected to Rise, Wells Fargo & Company Analyst Says

Key Points

• Wells Fargo & Company has raised its target price for Sixth Street Specialty Lending (NYSE: TSLX) from $21.00 to $24.00, maintaining an "overweight" rating on the stock.
• The company reported $0.56** in earnings per share (EPS) for the quarter, exceeding analysts' expectations of $0.53, with revenue hitting $115.00 million.
• As of the latest reports, six analysts have issued a buy rating on TSLX, with a consensus price target of $23.06.

Sixth Street Specialty Lending (NYSE:TSLX - Get Free Report) had its price target hoisted by equities research analysts at Wells Fargo & Company from $21.00 to $24.00 in a research report issued on Friday,Benzinga reports. The brokerage presently has an "overweight" rating on the financial services provider's stock. Wells Fargo & Company's price objective would suggest a potential upside of 0.95% from the stock's previous close.

Other research analysts also recently issued research reports about the stock. Raymond James Financial dropped their price target on shares of Sixth Street Specialty Lending from $24.00 to $23.00 and set an "outperform" rating on the stock in a research report on Friday, May 2nd. B. Riley began coverage on Sixth Street Specialty Lending in a research report on Tuesday, May 13th. They set a "buy" rating and a $23.00 target price on the stock. Finally, JPMorgan Chase & Co. dropped their price target on Sixth Street Specialty Lending from $23.00 to $21.50 and set an "overweight" rating on the stock in a research note on Thursday, April 24th. One research analyst has rated the stock with a hold rating, six have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Buy" and an average price target of $23.06.

Sixth Street Specialty Lending Price Performance

Sixth Street Specialty Lending stock traded down $0.02 during midday trading on Friday, reaching $23.78. The company's stock had a trading volume of 315,938 shares, compared to its average volume of 477,062. The stock has a market cap of $2.24 billion, a PE ratio of 11.83 and a beta of 0.84. The company has a current ratio of 3.79, a quick ratio of 3.79 and a debt-to-equity ratio of 1.07. Sixth Street Specialty Lending has a 52 week low of $18.58 and a 52 week high of $25.17. The business has a 50-day moving average price of $23.76 and a 200-day moving average price of $22.52.

Sixth Street Specialty Lending (NYSE:TSLX - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The financial services provider reported $0.56 earnings per share for the quarter, topping analysts' consensus estimates of $0.53 by $0.03. Sixth Street Specialty Lending had a return on equity of 13.47% and a net margin of 39.56%. The business had revenue of $115.00 million for the quarter, compared to analyst estimates of $110.42 million. During the same quarter in the previous year, the company posted $0.58 EPS. On average, sell-side analysts predict that Sixth Street Specialty Lending will post 2.19 EPS for the current year.

Hedge Funds Weigh In On Sixth Street Specialty Lending

A number of hedge funds have recently added to or reduced their stakes in the stock. Franklin Resources Inc. grew its position in Sixth Street Specialty Lending by 4.4% in the 4th quarter. Franklin Resources Inc. now owns 341,477 shares of the financial services provider's stock worth $7,273,000 after purchasing an additional 14,394 shares in the last quarter. Atlas Capital Advisors Inc. purchased a new position in Sixth Street Specialty Lending in the fourth quarter worth $109,000. Wells Fargo & Company MN raised its stake in shares of Sixth Street Specialty Lending by 2.9% during the 4th quarter. Wells Fargo & Company MN now owns 1,183,141 shares of the financial services provider's stock worth $25,201,000 after purchasing an additional 33,026 shares during the period. Waterloo Capital L.P. grew its position in shares of Sixth Street Specialty Lending by 6.0% during the 4th quarter. Waterloo Capital L.P. now owns 91,526 shares of the financial services provider's stock valued at $1,950,000 after acquiring an additional 5,220 shares during the period. Finally, Texas Yale Capital Corp. grew its holdings in Sixth Street Specialty Lending by 41.4% during the fourth quarter. Texas Yale Capital Corp. now owns 35,000 shares of the financial services provider's stock valued at $746,000 after purchasing an additional 10,250 shares during the period. 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 business development company. The fund provides senior secured loans (first-lien, second-lien, and unitranche), unsecured loans, mezzanine debt, and investments in corporate bonds and equity securities and structured products, non-control structured equity, and common equity with a focus on co-investments for organic growth, acquisitions, market or product expansion, restructuring initiatives, recapitalizations, and refinancing.