The finance space is in a bit of a tough spot right now. With the Federal Reserve likely to carry on raising rates throughout this year, and the impact of a Trump presidency inflicting what remains a relatively uncertain outlook across a spate of industries, capital allocation is difficult. This is weighing on sentiment, and in turn, prices. Of course, when prices depress, smart money is able to pick up an exposure at a discount, and we’ve seen just that happen today.
In a just published Form 13, filed with the US Securities and Exchange Commission (SEC), Tpg Specialty Lending Inc. (NYSE:TSLX) reported that Strs Ohio has picked up 4,357,09 of common stock as of 2017-01-25.
The acquisition brings the aggregate amount owned by Strs Ohio to a total of 4,357,09 representing a 7.296% stake in the company.
For those not familiar with the company, TPG Specialty Lending, Inc. (TSL) 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, to a lesser extent, originations of mezzanine loans and investments in corporate bonds and equity securities. It is engaged in direct equity investments, sale of loans and debt and equity securities, and loan origination. The companies in which TSL invests use its capital to support organic growth, acquisitions, market or product expansion and recapitalizations.
A glance at Tpg Specialty Lending Inc. (NYSE:TSLX)’s key stats reveals a current market capitalization of 1.13 billion based on 59.72 million shares outstanding and a price at last close of $18.94 per share.
Looking at insider activity, there are a few transactions worth noting.
Specifically, on 2016-11-21, Waxman picked up 230 at a purchase price of $18.39. This brings their total holding to 139,327 as of the date of the filing.
On the sell side, the most recent transaction saw Mssb unload 2,593,099 shares at a sale price of $18.07. This brings their total holding to 3,012,582.
It’s possible to gauge a company’s potential by tracking the activity of its major holders, as well as checking in on insider activity such as those transactions listed above. We’ll be keeping an eye on Tpg Specialty Lending Inc. (NYSE:TSLX) as things move forward to see if its progress aligns with these transactions.
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