Sixth Street Specialty Lending (NYSE:TSLX) Sees Large Volume Increase Following Strong Earnings

Shares of Sixth Street Specialty Lending, Inc. (NYSE:TSLX) saw an uptick in trading volume on Friday after the company announced better than expected quarterly earnings. 1,372,090 shares changed hands during trading, an increase of 136% from the previous session’s volume of 581,740 shares.The stock last traded at $19.54 and had previously closed at $20.12.

The financial services provider reported $0.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.50 by $0.02. The firm had revenue of $108.25 million during the quarter, compared to analyst estimates of $107.11 million. Sixth Street Specialty Lending had a return on equity of 13.20% and a net margin of 41.24%.During the same quarter in the previous year, the company posted $0.61 earnings per share.

Sixth Street Specialty Lending Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Monday, March 16th will be given a $0.01 dividend. This represents a $0.04 dividend on an annualized basis and a yield of 0.2%. The ex-dividend date is Monday, March 16th. Sixth Street Specialty Lending’s dividend payout ratio (DPR) is presently 90.20%.

Key Headlines Impacting Sixth Street Specialty Lending

Here are the key news stories impacting Sixth Street Specialty Lending this week:

• Positive Sentiment: Q4 results modestly beat expectations: Sixth Street reported $0.52 EPS vs. consensus $0.50 and revenue of $108.3M vs. $107.1M, signaling underlying portfolio income held up relative to estimates. Zacks: Q4 Earnings and Revenues Top Estimates
• Positive Sentiment: Dividends declared: the company declared a $0.46 first‑quarter base dividend and a $0.01 fourth‑quarter supplemental dividend (supplemental also announced separately), supporting the BDC’s income profile for yield‑oriented investors. Business Wire: Earnings & Dividend Release
• Neutral Sentiment: Company hosted a conference call and published slide materials for the quarter — useful for investors seeking detail on portfolio performance, credit trends and pipeline. Press Release / Slides
• Negative Sentiment: Earnings pressure and sector headwinds: EPS declined year‑over‑year (from $0.61 to $0.52) and commentary highlights cooling across the BDC sector, which likely heightened investor caution despite the beat. Investing.com: Earnings Under Pressure
• Negative Sentiment: Technical/flow pressure: shares traded with significantly higher volume than average and sit below the 50‑ and 200‑day moving averages, which can amplify downside as traders react to the mixed print and sector weakness. Earnings Snapshot

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the company. Weiss Ratings reiterated a “buy (b-)” rating on shares of Sixth Street Specialty Lending in a report on Wednesday, December 24th. Keefe, Bruyette & Woods lowered their price objective on Sixth Street Specialty Lending from $24.00 to $23.00 and set an “outperform” rating for the company in a research report on Thursday, November 6th. Royal Bank Of Canada cut their target price on shares of Sixth Street Specialty Lending from $25.00 to $24.00 and set an “outperform” rating on the stock in a report on Wednesday, November 19th. Finally, Wells Fargo & Company dropped their price target on shares of Sixth Street Specialty Lending from $24.00 to $22.00 and set an “overweight” rating for the company in a research report on Thursday, November 6th. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Sixth Street Specialty Lending currently has an average rating of “Moderate Buy” and an average price target of $23.50.

Insider Buying and Selling at Sixth Street Specialty Lending

In related news, CEO Robert J. Stanley purchased 10,000 shares of Sixth Street Specialty Lending stock in a transaction that occurred on Tuesday, November 18th. The shares were bought at an average price of $20.85 per share, for a total transaction of $208,500.00. Following the completion of the transaction, the chief executive officer directly owned 24,907 shares of the company’s stock, valued at $519,310.95. This represents a 67.08% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders own 3.22% of the company’s stock.

Institutional Trading of Sixth Street Specialty Lending

Several large investors have recently bought and sold shares of the company. Sumitomo Mitsui Trust Group Inc. lifted its stake in Sixth Street Specialty Lending by 25.8% during the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 662,896 shares of the financial services provider’s stock valued at $15,154,000 after acquiring an additional 135,789 shares during the period. 1832 Asset Management L.P. grew its stake in shares of Sixth Street Specialty Lending by 13.0% in the second quarter. 1832 Asset Management L.P. now owns 395,347 shares of the financial services provider’s stock worth $9,413,000 after acquiring an additional 45,347 shares during the period. Tred Avon Family Wealth LLC purchased a new position in shares of Sixth Street Specialty Lending during the third quarter valued at approximately $1,028,000. Rockefeller Capital Management L.P. lifted its position in Sixth Street Specialty Lending by 7.3% during the second quarter. Rockefeller Capital Management L.P. now owns 207,112 shares of the financial services provider’s stock valued at $4,931,000 after purchasing an additional 14,104 shares during the period. Finally, Ignite Planners LLC boosted its holdings in Sixth Street Specialty Lending by 54.0% in the second quarter. Ignite Planners LLC now owns 71,358 shares of the financial services provider’s stock worth $1,770,000 after purchasing an additional 25,009 shares during the last quarter. 70.25% of the stock is owned by institutional investors.

Sixth Street Specialty Lending Stock Performance

The firm has a market cap of $1.84 billion, a P/E ratio of 9.51 and a beta of 0.70. The company has a debt-to-equity ratio of 1.13, a quick ratio of 4.73 and a current ratio of 4.73. The business’s 50-day simple moving average is $21.70 and its 200 day simple moving average is $22.45.

Sixth Street Specialty Lending Company Profile

Sixth Street Specialty Lending Inc (NYSE: TSLX) is a closed-end, externally managed business development company that provides flexible debt financing solutions to middle-market companies. The fund primarily targets senior secured loans, unitranche facilities, mezzanine debt, second-lien financings and equity co-investment opportunities. By structuring tailored capital solutions, Sixth Street Specialty Lending seeks to support growth initiatives, recapitalizations and refinancings across a diverse set of industries, including technology, healthcare and business services.

As an affiliate of Sixth Street Partners, a global alternative investment firm, the company leverages the broader platform’s credit research, operational expertise and industry relationships.