Sixth Street Specialty Lending is a high-quality business development company with strong 25% margins, a 121% free cash flow conversion rate, and a 1,024% dividend coverage ratio, but a confirmed death cross, declining revenue of -20%, and three simultaneously failed quality gates limit the near-term entry appeal despite the attractive underlying fundamentals.
Thesis pillars
- Earnings Execution Beat Streak→Stable
- Death Cross Revenue Decline Headwind↓Deteriorating
- High Quality Cash Conversion→Stable
- +1 more pillar — see the Why tab for full reasoning
Sixth Street Specialty Lending, (TSLX) Stock Analysis
Range Bound setup · Catalyst-Driven edge
Financial Services · Asset Management
Sell if holding. Analyst target reached at $17.13 — A.R:R is negative (-0.4) — 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 1.2): -0.5.
Sixth Street Specialty Lending is a BDC managed by an affiliate of Sixth Street Partners that generates income by originating direct loans primarily to U.S.-domiciled middle-market companies with annual EBITDA between $10 million and $250 million. Revenue comes primarily from... Read more
Sell if holding. Analyst target reached at $17.13 — A.R:R is negative (-0.4) — 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 1.2): -0.5. Chart setup: RSI 50 mid-range, Bollinger mid-band. Score 5.9/10, moderate confidence.
Passes 6/10 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
Recent developments
updated 2026-07-27Recent Developments — Sixth Street Specialty Lending,
Latest news
- NEWS Sixth Street Specialty Lending (TSLX) Projected to Post Quarterly Earnings on Tuesday - MarketBeat — MarketBeat neutral
- NEWS Earnings Preview: TSLX to Report Financial Results Post-market on May 05 - Moomoo — Moomoo neutral
- NEWS Earnings Preview: TSLX to Report Financial Results Post-market on May 05 - 富途牛牛 — 富途牛牛 neutral
- NEWS Sixth St (TSLX) Reports Q4 Earnings: What Key Metrics Have to Say - MSN — MSN neutral
- NEWS Earnings To Watch: Sixth Street Specialty Lending (TSLX) Reports Q1 Results Tomorrow - StockStory — StockStory neutral
Generated 2026-07-31T02:04:08Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- LOWloan_portfolioInternet Services18%10-K Item 1: 'The largest industry in our portfolio as of December 31, 2025 was Internet Services, which represented...18.3% of the total portfolio based on fair value.'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
1 floor-breaker
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $17.13 — A.R:R is negative (-0.4) — 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 1.2): -0.5. Chart setup: RSI 50 mid-range, Bollinger mid-band. Prior stop was $16.25. Score 5.9/10, moderate confidence.
Take-profit target: $17.62 (-2.1% upside). Prior stop was $16.25. Stop-loss: $16.25.
Analyst target reached - limited upside remaining; Leverage penalty (D/E 1.2): -0.5; Below 200-MA, MA slope -3.7%/30d (confirmed downtrend).
Sixth Street Specialty Lending, trades at a P/E of 14.5 (forward 9.3). TrendMatrix value score: 7.9/10. Verdict: Sell.
18 analysts cover TSLX with a consensus score of 4.1/5. Average price target: $19.
What does Sixth Street Specialty Lending, do?Sixth Street Specialty Lending is a BDC managed by an affiliate of Sixth Street Partners that generates income by...
Sixth Street Specialty Lending is a BDC managed by an affiliate of Sixth Street Partners that generates income by originating direct loans primarily to U.S.-domiciled middle-market companies with annual EBITDA between $10 million and $250 million. Revenue comes primarily from interest income on senior secured loans. As of December 31, 2025, the total investment portfolio was $3,347.3 million at fair value across 143 portfolio companies in 19 industries.