TPG Specialty Lending (TSLX) Stock Rating Reaffirmed by National Securities
TPG Specialty Lending (NYSE:TSLX)‘s stock had its “buy” rating reiterated by research analysts at National Securities in a report issued on Thursday. They currently have a $21.00 price objective on the financial services provider’s stock. National Securities’ price target would suggest a potential upside of 20.00% from the stock’s previous close.
The analysts wrote, “• TPG priced a secondary offering of 3.75 million shares (562,500 green shoe) at $17.45 per share. The re-offer price represents an 8% premium to the $16.09 4Q17 NAV/share and is thus likely to be accretive.
• We expect the overallotment to be exercised in full subsequent to 3/31/18. We model net proceeds to TPG of $71.5 million after fees including the exercise of the overallotment. The company noted that 152,295 DRIP shares were issued in 1Q18 in addition to the shares that will be issued with the secondary offering.
• We had previously modeled a $90.3 million net equity issuance at a 20% NAV premium in 2Q18. Thus, the offering is smaller and sooner than we expected but the premium is also lower.
• TSLX noted that as of 3/16/18 its revolver balance was $502.1 million and we anticipate that the offering as well as repayments late in the quarter will help drive this balance down to $369.8 million at 3/31/18. We had previously estimated that TSLX’s revolver balance would finish 1Q18 at $389.3 million without a secondary offering – we originally forecasted a portfolio fair value of $1.76 billion at 3/31/18 but now expect this to be $1.80 billion.
• We are maintaining our NII/share estimates of $1.93 and $1.92 for 2018 and 2019, respectively, and are reiterating our BUY rating and $21 price target.”
A number of other equities analysts have also weighed in on the stock. ValuEngine lowered shares of TPG Specialty Lending from a “buy” rating to a “hold” rating in a research report on Thursday. SunTrust Banks reissued a “buy” rating and issued a $21.00 price objective on shares of TPG Specialty Lending in a research report on Friday, February 23rd. JMP Securities cut their price objective on shares of TPG Specialty Lending from $22.00 to $21.50 and set an “outperform” rating for the company in a research report on Friday, February 23rd. Finally, Ladenburg Thalmann Financial Services raised shares of TPG Specialty Lending from a “neutral” rating to a “buy” rating in a research report on Thursday, February 22nd. One research analyst has rated the stock with a sell rating, two have assigned a hold rating and four have given a buy rating to the company. The stock has a consensus rating of “Hold” and a consensus price target of $21.63.
TPG Specialty Lending (NYSE:TSLX) last posted its quarterly earnings data on Wednesday, February 21st. The financial services provider reported $0.45 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.45. The business had revenue of $48.80 million during the quarter, compared to analyst estimates of $49.58 million. TPG Specialty Lending had a net margin of 53.80% and a return on equity of 12.45%. The company’s revenue was down 1.8% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.47 earnings per share. analysts forecast that TPG Specialty Lending will post 1.82 EPS for the current year.
In other TPG Specialty Lending news, Director Richard A. Higginbotham acquired 10,000 shares of the firm’s stock in a transaction on Wednesday, February 28th. The stock was bought at an average cost of $18.32 per share, for a total transaction of $183,200.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director John Ross acquired 5,000 shares of the firm’s stock in a transaction on Tuesday, March 6th. The shares were acquired at an average price of $18.40 per share, with a total value of $92,000.00. Following the completion of the purchase, the director now owns 22,701 shares of the company’s stock, valued at $417,698.40. The disclosure for this purchase can be found here. Over the last 90 days, insiders purchased 16,295 shares of company stock valued at $298,852. 4.80% of the stock is owned by insiders.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in TSLX. Steward Partners Investment Advisory LLC purchased a new stake in TPG Specialty Lending during the fourth quarter worth approximately $104,000. IFG Advisory LLC purchased a new stake in TPG Specialty Lending during the fourth quarter worth approximately $209,000. Nationwide Fund Advisors purchased a new stake in TPG Specialty Lending during the third quarter worth approximately $256,000. Texas Yale Capital Corp. purchased a new stake in TPG Specialty Lending during the fourth quarter worth approximately $278,000. Finally, Koshinski Asset Management Inc. grew its stake in TPG Specialty Lending by 21.9% during the fourth quarter. Koshinski Asset Management Inc. now owns 16,400 shares of the financial services provider’s stock worth $325,000 after buying an additional 2,950 shares during the period. Institutional investors own 62.76% of the company’s stock.
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TPG Specialty Lending Company Profile
TPG Specialty Lending, Inc is an externally managed, closed-end, non-diversified management investment company. The Company is a specialty finance company focused on lending to middle-market companies. It seeks to generate current income primarily in the United States-domiciled middle-market companies through direct originations of senior secured loans and originations of mezzanine and unsecured loans and investments in corporate bonds and equity securities.
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