Sixth Street Specialty Lending (NYSE:TSLX) Hits New 12-Month Low on Analyst Downgrade

Shares of Sixth Street Specialty Lending, Inc. (NYSE:TSLX) reached a new 52-week low during mid-day trading on Tuesday after JPMorgan Chase & Co. lowered their price target on the stock from $23.00 to $21.00. JPMorgan Chase & Co. currently has a neutral rating on the stock. Sixth Street Specialty Lending traded as low as $18.51 and last traded at $18.6670, with a volume of 592905 shares changing hands. The stock had previously closed at $19.23.

Several other brokerages also recently commented on TSLX. Keefe, Bruyette & Woods dropped their target price on Sixth Street Specialty Lending from $23.00 to $22.00 and set an “outperform” rating on the stock in a report on Tuesday. Wells Fargo & Company dropped their price objective on shares of Sixth Street Specialty Lending from $22.00 to $20.00 and set an “overweight” rating on the stock in a research note on Tuesday. Royal Bank Of Canada reduced their target price on shares of Sixth Street Specialty Lending from $25.00 to $24.00 and set an “outperform” rating on the stock in a research report on Wednesday, November 19th. Truist Financial lowered their price target on shares of Sixth Street Specialty Lending from $24.00 to $22.00 and set a “buy” rating for the company in a report on Tuesday. Finally, Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Sixth Street Specialty Lending in a research note on Wednesday, December 24th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Buy” and an average price target of $22.50.

Sixth Street Specialty Lending News Roundup

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

• Positive Sentiment: Citizens JMP reaffirmed a “market outperform” rating and set a $25.00 price target (roughly a 30% upside from the recent price), giving a clear bullish signal that likely helped buying interest. Benzinga
• Positive Sentiment: Keefe, Bruyette & Woods cut their target slightly (from $23 to $22) but maintained an “outperform” rating, indicating continued conviction in TSLX’s upside despite trimming valuation. Benzinga
• Positive Sentiment: Truist trimmed its price target (from $24 to $22) but kept a “buy” rating, another supportive vote from the sell-side that may underpin demand. Benzinga
• Positive Sentiment: Analyst/market commentary defending TSLX (e.g., Seeking Alpha piece arguing recent weakness is more valuation-driven than fundamental) may reassure investors and reduce downside selling. Sixth Street Specialty: Far From The Beginning Of The End
• Neutral Sentiment: JPMorgan lowered its price target from $23 to $21 and moved to a “neutral” rating — a mixed signal that reduces some upside expectations but stops short of a sell call. Benzinga TickerReport
• Negative Sentiment: Coverage noting TSLX weakness and relative underperformance (e.g., articles highlighting lows vs. NYSE comps) contributes to bearish sentiment and may increase selling pressure among short-term holders. Sixth Street Specialty Lending (NYSE:TSLX) Lows as NYSE Comp.

Institutional Trading of Sixth Street Specialty Lending

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Caprock Group LLC bought a new position in Sixth Street Specialty Lending during the 3rd quarter worth $1,478,000. Sumitomo Mitsui Trust Group Inc. lifted its stake in Sixth Street Specialty Lending by 25.8% in the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 662,896 shares of the financial services provider’s stock valued at $15,154,000 after buying an additional 135,789 shares during the last quarter. 1832 Asset Management L.P. boosted its holdings in shares of Sixth Street Specialty Lending by 13.0% during the second quarter. 1832 Asset Management L.P. now owns 395,347 shares of the financial services provider’s stock valued at $9,413,000 after acquiring an additional 45,347 shares during the period. Tred Avon Family Wealth LLC bought a new position in shares of Sixth Street Specialty Lending during the third quarter worth about $1,028,000. Finally, Rockefeller Capital Management L.P. increased its holdings in shares of Sixth Street Specialty Lending by 7.3% in the 2nd quarter. Rockefeller Capital Management L.P. now owns 207,112 shares of the financial services provider’s stock worth $4,931,000 after acquiring an additional 14,104 shares during the period. 70.25% of the stock is owned by institutional investors.

Sixth Street Specialty Lending Stock Performance

The firm has a market cap of $1.82 billion, a price-to-earnings ratio of 10.63 and a beta of 0.70. The stock’s fifty day moving average is $21.43 and its two-hundred day moving average is $22.30. The company has a debt-to-equity ratio of 1.08, a quick ratio of 2.83 and a current ratio of 2.83.

Sixth Street Specialty Lending (NYSE:TSLX) last posted its earnings results on Thursday, February 12th. The financial services provider reported $0.52 EPS for the quarter, topping the consensus estimate of $0.50 by $0.02. The firm had revenue of $108.25 million during the quarter, compared to analysts’ expectations of $107.11 million. Sixth Street Specialty Lending had a net margin of 37.99% and a return on equity of 12.71%. During the same quarter in the prior year, the firm earned $0.61 EPS. On average, analysts expect that Sixth Street Specialty Lending, Inc. will post 2.19 earnings per share for the current fiscal year.

Sixth Street Specialty Lending Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Monday, March 16th will be given a $0.01 dividend. This represents a $0.04 annualized dividend and a yield of 0.2%. The ex-dividend date is Monday, March 16th. Sixth Street Specialty Lending’s dividend payout ratio (DPR) is currently 101.66%.

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.