Sixth Street Specialty Lending (NYSE:TSLX) Sees Strong Trading Volume Following Earnings Beat

Shares of Sixth Street Specialty Lending, Inc. (NYSE:TSLX) saw strong trading volume on Friday following a stronger than expected earnings report. 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 EPS for the quarter, topping the consensus estimate of $0.50 by $0.02. Sixth Street Specialty Lending had a net margin of 37.99% and a return on equity of 12.70%. The business had revenue of $108.25 million during the quarter, compared to analyst estimates of $107.11 million. During the same period in the prior year, the business earned $0.61 EPS.

Sixth Street Specialty Lending Cuts Dividend

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

Sixth Street Specialty Lending News Roundup

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

• Positive Sentiment: Q4 results slightly beat expectations — reported EPS of $0.52 vs. $0.50 consensus and revenue of $108.25M vs. $107.11M; high net margin (41.2%) and solid ROE (13.2%) provide fundamental support. Sixth Street Specialty Lending, Inc. Reports Full Year and Fourth Quarter 2025 Earnings Results; Declares a First Quarter Base Dividend Per Share of $0.46, and a Fourth Quarter Supplemental Dividend Per Share of $0.01
• Positive Sentiment: Management declared a Q1 base dividend of $0.46 and a Q4 supplemental dividend of $0.01 (supplemental ex-dividend/record dates noted), supporting income-focused holders. Dividend / Press Release
• Neutral Sentiment: Company released an earnings slide deck and held a conference call; investors can review the presentation and full transcript for portfolio composition, fee income and credit-quality commentary to assess forward earnings drivers. Q4 Results – Earnings Call Presentation Earnings Call Transcript
• Negative Sentiment: EPS declined year-over-year (from $0.61 in prior-year quarter to $0.52), signaling margin/earnings pressure despite the beat; that deterioration can weigh on valuation for income-oriented BDC investors. Zacks: Q4 Earnings and Revenues Top Estimates
• Negative Sentiment: Broader BDC-sector cooling and investor concerns about credit/fee trends were highlighted by market commentary, which may have amplified downside despite the modest beat. Investing.com: Earnings Under Pressure as BDC Sector Cools
• Negative Sentiment: Technical/flow pressure: heavy intraday volume and shares trading nearer the 52-week low and below the 50/200-day averages increase downside risk and may prompt short-term selling by technical traders. MarketBeat TSLX Quote & Stats

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on TSLX shares. Weiss Ratings reissued a “buy (b-)” rating on shares of Sixth Street Specialty Lending in a research report on Wednesday, December 24th. Wells Fargo & Company reduced their price target on Sixth Street Specialty Lending from $24.00 to $22.00 and set an “overweight” rating on the stock in a research note on Thursday, November 6th. Royal Bank Of Canada decreased their price objective on Sixth Street Specialty Lending from $25.00 to $24.00 and set an “outperform” rating for the company in a report on Wednesday, November 19th. Finally, Keefe, Bruyette & Woods dropped their target price on shares of 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. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, the company currently has an average rating of “Buy” and a consensus target price of $23.50.

Insider Buying and Selling

In related news, CEO Robert J. Stanley bought 10,000 shares of the company’s stock in a transaction on Tuesday, November 18th. The shares were acquired at an average cost of $20.85 per share, with a total value of $208,500.00. Following the completion of the acquisition, the chief executive officer owned 24,907 shares of the company’s stock, valued at $519,310.95. The trade was a 67.08% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 3.22% of the company’s stock.

Institutional Trading of Sixth Street Specialty Lending

Institutional investors have recently bought and sold shares of the company. Bank of Montreal Can increased its stake in Sixth Street Specialty Lending by 419.5% during the 4th quarter. Bank of Montreal Can now owns 2,284,920 shares of the financial services provider’s stock valued at $49,628,000 after purchasing an additional 1,845,088 shares in the last quarter. Tectonic Advisors LLC purchased a new stake in shares of Sixth Street Specialty Lending during the third quarter valued at approximately $12,777,000. Van ECK Associates Corp increased its position in shares of Sixth Street Specialty Lending by 18.0% during the third quarter. Van ECK Associates Corp now owns 2,529,187 shares of the financial services provider’s stock valued at $57,817,000 after acquiring an additional 385,398 shares in the last quarter. Goldman Sachs Group Inc. raised its holdings in Sixth Street Specialty Lending by 105.0% in the 4th quarter. Goldman Sachs Group Inc. now owns 624,196 shares of the financial services provider’s stock worth $13,558,000 after acquiring an additional 319,665 shares during the last quarter. Finally, UBS Group AG lifted its position in Sixth Street Specialty Lending by 22.8% in the 4th quarter. UBS Group AG now owns 1,616,161 shares of the financial services provider’s stock valued at $35,103,000 after acquiring an additional 299,564 shares in the last quarter. 70.25% of the stock is owned by hedge funds and other institutional investors.

Sixth Street Specialty Lending Trading Down 4.4%

The firm has a market capitalization of $1.82 billion, a PE ratio of 10.63 and a beta of 0.70. The firm has a 50 day simple moving average of $21.64 and a 200 day simple moving average of $22.42. The company has a current ratio of 4.73, a quick ratio of 4.73 and a debt-to-equity ratio of 1.13.

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.