Sixth Street Specialty Lending, (TSLX) Stock Analysis
Recovery setup
Financial Services · Asset Management
Sell if holding. Analyst target reached at $19.28 — A.R:R is negative (-0.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 1.1): -0.5.
Sixth Street Specialty Lending is a business development company (BDC) focused on direct lending to US middle-market companies ($10M-$250M EBITDA) through senior secured loans. Since inception in July 2011, it has originated ~$53.3 billion in investments; as of December 31,... Read more
Sell if holding. Analyst target reached at $19.28 — A.R:R is negative (-0.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 1.1): -0.5. Chart setup: Death cross but MACD improving, RSI 69. Score 5.4/10, moderate confidence.
Passes 4/9 gates (positive momentum, no SEC red flags, news events none recent, semi cycle peak clear). Fails on favorable risk/reward ratio and clean insider activity and earnings proximity 5d<=7d. Suitability: aggressive.
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- LOWloan_portfolioInternet Services18%10-K Item 1A: 'The largest industry in our portfolio as of December 31, 2025 was Internet Services, which represented, as a percentage of our portfolio, 18.3% of the total portfolio based on fair value.'
Material Events(8-K, last 90d)
- 2026-02-23Item 5.02LOWChairman Joshua Easterly will not seek re-election to the Board at the 2026 Annual Meeting (May 21, 2026). He is retiring from Sixth Street Partners as of June 30, 2026. Board intends to appoint a successor Chairman around the Annual Meeting date. No disagreement cited.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer
Rating Breakdown
3 floor-breakers
Revenue shrinking — -12.5% YoY. Growth thesis broken unless recovery story develops.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $19.28 — A.R:R is negative (-0.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 1.1): -0.5. Chart setup: Death cross but MACD improving, RSI 69. Prior stop was $18.42. Score 5.4/10, moderate confidence.
Take-profit target: $19.24 (+0.1% upside). Prior stop was $18.42. Stop-loss: $18.42.
Analyst target reached - limited upside remaining; Leverage penalty (D/E 1.1): -0.5; Earnings in 5 days (event risk).
Sixth Street Specialty Lending, trades at a P/E of 10.5 (forward 9.7). TrendMatrix value score: 7.2/10. Verdict: Sell.
18 analysts cover TSLX with a consensus score of 4.1/5. Average price target: $22.
What does Sixth Street Specialty Lending, do?Sixth Street Specialty Lending is a business development company (BDC) focused on direct lending to US middle-market...
Sixth Street Specialty Lending is a business development company (BDC) focused on direct lending to US middle-market companies ($10M-$250M EBITDA) through senior secured loans. Since inception in July 2011, it has originated ~$53.3 billion in investments; as of December 31, 2025, it holds 143 portfolio companies with average investment size of ~$30.4 million (excluding CLOs).