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

Sixth Street Specialty Lending, Inc. (NYSE:TSLX) saw strong trading volume on Friday following a better than expected earnings announcement. 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 for the quarter, beating analysts’ consensus estimates of $0.50 by $0.02. The business had revenue of $108.25 million during the quarter, compared to the consensus estimate of $107.11 million. Sixth Street Specialty Lending had a net margin of 41.24% and a return on equity of 13.20%. During the same quarter in the prior year, the firm posted $0.61 EPS.

Sixth Street Specialty Lending Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Monday, March 16th will be given a dividend of $0.01 per share. The ex-dividend date of this dividend is Monday, March 16th. This represents a $0.04 dividend on an annualized basis and a yield of 0.2%. Sixth Street Specialty Lending’s dividend payout ratio is 90.20%.

Key Sixth Street Specialty Lending News

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 Ratings Changes

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

Insiders Place Their Bets

In other news, CEO Robert J. Stanley acquired 10,000 shares of the firm’s stock in a transaction on Tuesday, November 18th. The stock was purchased at an average price of $20.85 per share, for a total transaction of $208,500.00. Following the purchase, the chief executive officer owned 24,907 shares in the company, valued at approximately $519,310.95. This represents a 67.08% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Company insiders own 3.22% of the company’s stock.

Institutional Investors Weigh In On Sixth Street Specialty Lending

Several large investors have recently modified their holdings of TSLX. Texas Yale Capital Corp. raised its stake in Sixth Street Specialty Lending by 1.4% in the 2nd quarter. Texas Yale Capital Corp. now owns 35,500 shares of the financial services provider’s stock valued at $845,000 after acquiring an additional 500 shares during the period. Chicago Partners Investment Group LLC increased its stake in shares of Sixth Street Specialty Lending by 2.2% in the third quarter. Chicago Partners Investment Group LLC now owns 23,369 shares of the financial services provider’s stock worth $534,000 after purchasing an additional 505 shares in the last quarter. Lido Advisors LLC raised its position in shares of Sixth Street Specialty Lending by 1.2% in the fourth quarter. Lido Advisors LLC now owns 42,172 shares of the financial services provider’s stock valued at $958,000 after purchasing an additional 506 shares during the period. Stratos Wealth Partners LTD. raised its stake in shares of Sixth Street Specialty Lending by 5.6% during the 4th quarter. Stratos Wealth Partners LTD. now owns 10,047 shares of the financial services provider’s stock valued at $218,000 after purchasing an additional 532 shares during the period. Finally, IFG Advisory LLC lifted its stake in Sixth Street Specialty Lending by 2.7% in the 3rd quarter. IFG Advisory LLC now owns 21,159 shares of the financial services provider’s stock worth $484,000 after purchasing an additional 551 shares in the last quarter. Hedge funds and other institutional investors own 70.25% of the company’s stock.

Sixth Street Specialty Lending Stock Down 3.2%

The company has a debt-to-equity ratio of 1.13, a current ratio of 4.73 and a quick ratio of 4.73. The company 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 50 day moving average of $21.70 and a 200-day moving average of $22.45.

About Sixth Street Specialty Lending

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.