Sixth Street Specialty Lending (NYSE:TSLX) Given New $18.50 Price Target at Keefe, Bruyette & Woods

Sixth Street Specialty Lending (NYSE:TSLX) had its price objective decreased by Keefe, Bruyette & Woods from $21.00 to $18.50 in a report published on Thursday morning,Benzinga reports. Keefe, Bruyette & Woods currently has an outperform rating on the financial services provider’s stock.

TSLX has been the subject of several other research reports. Truist Financial cut their price target on Sixth Street Specialty Lending from $22.00 to $20.00 and set a “buy” rating for the company in a report on Thursday. Wells Fargo & Company lowered their price objective on Sixth Street Specialty Lending from $20.00 to $19.00 and set an “overweight” rating on the stock in a research report on Thursday. Wall Street Zen upgraded Sixth Street Specialty Lending from a “sell” rating to a “hold” rating in a research report on Saturday, April 4th. Royal Bank Of Canada lowered their price objective on Sixth Street Specialty Lending from $22.00 to $20.00 and set an “outperform” rating on the stock in a research report on Thursday. Finally, Citizens Jmp lowered their price objective on 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. One equities research 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.com, the company has a consensus rating of “Moderate Buy” and an average price target of $20.29.

Sixth Street Specialty Lending Stock Performance

Sixth Street Specialty Lending stock traded up $0.23 during mid-day trading on Thursday, hitting $18.12. 453,031 shares of the company’s stock traded hands, compared to its average volume of 924,913. The firm has a 50 day simple moving average of $18.35 and a two-hundred day simple moving average of $20.36. Sixth Street Specialty Lending has a fifty-two week low of $16.99 and a fifty-two week high of $25.17. The stock has a market cap of $1.72 billion, a price-to-earnings ratio of 15.76 and a beta of 0.65. The company has a debt-to-equity ratio of 1.17, a current ratio of 3.39 and a quick ratio of 2.83.

Sixth Street Specialty Lending (NYSE:TSLX) last announced its quarterly earnings results on Tuesday, May 5th. The financial services provider reported $0.42 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.49 by ($0.07). Sixth Street Specialty Lending had a net margin of 25.25% and a return on equity of 11.92%. The business had revenue of $93.40 million for the quarter, compared to analyst estimates of $103.14 million. During the same period in the prior year, the business earned $0.58 EPS. On average, research analysts expect that Sixth Street Specialty Lending will post 1.97 EPS for the current fiscal year.

Sixth Street Specialty Lending Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 15th will be given a $0.42 dividend. The ex-dividend date is Monday, June 15th. This is an increase from Sixth Street Specialty Lending’s previous quarterly dividend of $0.01. This represents a $1.68 dividend on an annualized basis and a dividend yield of 9.3%. Sixth Street Specialty Lending’s dividend payout ratio (DPR) is 146.09%.

Insider Activity at Sixth Street Specialty Lending

In related news, VP Alan Waxman purchased 200,000 shares of the firm’s stock in a transaction that occurred on Monday, March 9th. The shares were bought at an average price of $18.18 per share, for a total transaction of $3,636,000.00. Following the completion of the transaction, the vice president owned 500,000 shares of the company’s stock, valued at approximately $9,090,000. This trade represents a 66.67% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this link. Insiders acquired a total of 545,000 shares of company stock valued at $9,997,150 in the last quarter. 3.83% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the stock. Chicago Partners Investment Group LLC increased its position in shares of Sixth Street Specialty Lending by 2.2% in the third quarter. Chicago Partners Investment Group LLC now owns 23,369 shares of the financial services provider’s stock worth $534,000 after purchasing an additional 505 shares during the period. Lido Advisors LLC increased its position in shares of Sixth Street Specialty Lending by 1.2% in the fourth quarter. Lido Advisors LLC now owns 42,172 shares of the financial services provider’s stock worth $958,000 after purchasing an additional 506 shares during the period. Stratos Wealth Partners LTD. increased its position in shares of Sixth Street Specialty Lending by 5.6% in the fourth quarter. Stratos Wealth Partners LTD. now owns 10,047 shares of the financial services provider’s stock worth $218,000 after purchasing an additional 532 shares during the period. IFG Advisory LLC increased its position in shares of Sixth Street Specialty Lending by 2.7% in the third 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 during the period. Finally, Family Wealth Partners LLC increased its position in shares of Sixth Street Specialty Lending by 2.5% in the fourth 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 during the period. Institutional investors own 70.25% of the company’s stock.

Key Headlines 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 and plans to use proceeds to pay down revolver balances, extending debt maturities and easing near‑term liquidity/rolling risk. This financing reduces short‑term funding pressure and may be viewed as stabilizing. Business Wire
• Positive Sentiment: Several sell‑side firms reduced price targets but kept constructive ratings (RBC, Truist, Wells Fargo, Keefe, Bruyette & Woods), signaling analysts still see upside or recovery potential despite recent headwinds. Benzinga roundup
• Neutral Sentiment: TipRanks coverage of the Q1 call flags a NAV hit from portfolio markdowns but also highlights potential upside areas management discussed on the call; view is balanced rather than outright bullish or bearish. TipRanks
• Neutral Sentiment: The full Q1 earnings call transcript is available for investors who want the primary detail on portfolio performance, NAV commentary, and management’s plan for coverage and capital allocation. Useful for due diligence. Seeking Alpha transcript
• Negative Sentiment: JPMorgan cut its price target to $17.50 and moved to a “neutral” rating — the PT is now below the current price, signaling reduced upside from one large bank and adding downward pressure on sentiment. Benzinga
• Negative Sentiment: Negative investor reaction stems from Q1 results: EPS and revenue missed, total interest revenue declined materially year‑over‑year, management cut the dividend to $0.42, and portfolio credit metrics showed deterioration (more stressed/3‑rated positions). That note has driven downgrades and volatility. Seeking Alpha article

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.