National Securities restated their buy rating on shares of TPG Specialty Lending (NYSE:TSLX) in a research report report published on Thursday. The firm currently has a $21.00 price target on the financial services provider’s stock.
“• 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.,” the firm’s analyst commented.
TSLX has been the subject of a number of other reports. Ladenburg Thalmann Financial Services raised shares of TPG Specialty Lending from a neutral rating to a buy rating in a research note on Thursday, February 22nd. JMP Securities dropped their price target on shares of TPG Specialty Lending from $22.00 to $21.50 and set an outperform rating for the company in a research note on Friday, February 23rd. SunTrust Banks reissued a buy rating and set a $21.00 price target on shares of TPG Specialty Lending in a research note on Friday, February 23rd. Finally, ValuEngine downgraded shares of TPG Specialty Lending from a buy rating to a hold rating in a research note on Thursday. One investment analyst has rated the stock with a sell rating, two have assigned a hold rating and four have assigned a buy rating to the company. TPG Specialty Lending presently has a consensus rating of Hold and a consensus target price of $21.63.
Shares of TPG Specialty Lending stock traded down $0.32 during mid-day trading on Thursday, hitting $17.65. 131,265 shares of the stock were exchanged, compared to its average volume of 346,931. TPG Specialty Lending has a 12 month low of $17.00 and a 12 month high of $21.74. The firm has a market capitalization of $1,057.01, a price-to-earnings ratio of 9.71, a price-to-earnings-growth ratio of 3.20 and a beta of 0.63. The company has a debt-to-equity ratio of 0.73, a current ratio of 0.71 and a quick ratio of 0.71.
TPG Specialty Lending (NYSE:TSLX) last announced its earnings results on Wednesday, February 21st. The financial services provider reported $0.45 earnings per share (EPS) for the quarter, hitting the Zacks’ consensus estimate of $0.45. The company had revenue of $48.80 million for 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%. TPG Specialty Lending’s quarterly revenue was down 1.8% on a year-over-year basis. During the same period in the prior year, the business earned $0.47 earnings per share. equities research analysts anticipate that TPG Specialty Lending will post 1.82 earnings per share for the current year.
The company also recently announced a special dividend, which will be paid on Friday, March 30th. Shareholders of record on Wednesday, February 28th will be paid a $0.03 dividend. This represents a yield of 8.52%. The ex-dividend date is Tuesday, February 27th. TPG Specialty Lending’s payout ratio is presently 84.32%.
In other news, Director Richard A. Higginbotham bought 10,000 shares of the stock in a transaction on Wednesday, February 28th. The stock was purchased at an average price of $18.32 per share, with a total value of $183,200.00. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director John Ross bought 5,000 shares of the stock in a transaction on Tuesday, March 6th. The stock was purchased at an average cost of $18.40 per share, with a total value of $92,000.00. Following the purchase, the director now directly owns 22,701 shares of the company’s stock, valued at approximately $417,698.40. The disclosure for this purchase can be found here. Insiders acquired 16,295 shares of company stock valued at $298,852 in the last ninety days. Insiders own 4.90% of the company’s stock.
A number of large investors have recently modified their holdings of the business. Her Majesty the Queen in Right of the Province of Alberta as represented by Alberta Investment Management Corp increased its stake in TPG Specialty Lending by 218.8% in the fourth quarter. Her Majesty the Queen in Right of the Province of Alberta as represented by Alberta Investment Management Corp now owns 41,700 shares of the financial services provider’s stock valued at $826,000 after purchasing an additional 28,620 shares in the last quarter. Flaharty Asset Management LLC acquired a new position in shares of TPG Specialty Lending in the fourth quarter valued at approximately $398,000. Raymond James & Associates boosted its holdings in shares of TPG Specialty Lending by 7.4% in the fourth quarter. Raymond James & Associates now owns 39,735 shares of the financial services provider’s stock valued at $787,000 after buying an additional 2,734 shares during the period. Deutsche Bank AG boosted its holdings in shares of TPG Specialty Lending by 22.3% in the fourth quarter. Deutsche Bank AG now owns 126,701 shares of the financial services provider’s stock valued at $2,507,000 after buying an additional 23,075 shares during the period. Finally, Invictus RG acquired a new position in shares of TPG Specialty Lending in the fourth quarter valued at approximately $398,000. 62.76% of the stock is owned by hedge funds and other institutional investors.
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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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