Piper Sandler Issues Pessimistic Forecast for NexPoint Real Estate Finance (NYSE:NREF) Stock Price

Key Points

• Piper Sandler cut its price target on NexPoint Real Estate Finance from $17.50 to $15.00 and maintained a neutral rating; the new target implies about 11.4% upside from the stock’s current price.
• Analyst sentiment is broadly cautious: the consensus rating is Hold, with an average price target of $15.00.
• NexPoint reported quarterly EPS of $0.46, beating the $0.40 consensus estimate, and revenue of $27.34 million versus analysts’ $14.57 million estimate.

NexPoint Real Estate Finance (NYSE:NREF - Get Free Report) had its target price decreased by equities research analysts at Piper Sandler from $17.50 to $15.00 in a research note issued on Monday, Benzinga reports. The brokerage currently has a "neutral" rating on the stock. Piper Sandler's target price points to a potential upside of 11.41% from the stock's current price.

NREF has been the subject of a number of other research reports. Keefe, Bruyette & Woods reduced their target price on NexPoint Real Estate Finance from $16.00 to $15.00 and set a "market perform" rating for the company in a report on Friday, October 9th. Zacks Research raised NexPoint Real Estate Finance from a "strong sell" rating to a "hold" rating in a research report on Thursday, September 24th. Wall Street Zen lowered NexPoint Real Estate Finance from a "hold" rating to a "sell" rating in a research report on Saturday, August 15th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of NexPoint Real Estate Finance in a research report on Monday, September 28th. Four investment analysts have rated the stock with a Hold rating. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $15.00.

NexPoint Real Estate Finance Stock Up 0.5%

NexPoint Real Estate Finance stock traded up $0.06 during trading on Monday, hitting $13.46. 20,234 shares of the company were exchanged, compared to its average volume of 58,432. The company has a current ratio of 163.94, a quick ratio of 163.94 and a debt-to-equity ratio of 1.79. The company has a market capitalization of $253.77 million, a P/E ratio of 23.15 and a beta of 1.11. NexPoint Real Estate Finance has a 52 week low of $12.60 and a 52 week high of $18.43. The business's 50 day moving average is $15.89 and its 200 day moving average is $15.40.

NexPoint Real Estate Finance (NYSE:NREF - Get Free Report) last announced its earnings results on Thursday, August 6th. The company reported $0.46 earnings per share for the quarter, topping analysts' consensus estimates of $0.40 by $0.06. The firm had revenue of $27.34 million for the quarter, compared to the consensus estimate of $14.57 million. NexPoint Real Estate Finance had a return on equity of 12.31% and a net margin of 47.44%. Analysts predict that NexPoint Real Estate Finance will post 1.50 earnings per share for the current year.

Institutional Investors Weigh In On NexPoint Real Estate Finance

Institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. acquired a new stake in shares of NexPoint Real Estate Finance during the second quarter worth about $9,676,000. Independent Financial Group LLC acquired a new position in NexPoint Real Estate Finance in the 1st quarter valued at about $3,229,000. Russell Investments Group Ltd. increased its position in shares of NexPoint Real Estate Finance by 92.8% during the third quarter. Russell Investments Group Ltd. now owns 61,830 shares of the company's stock valued at $960,000 after acquiring an additional 29,755 shares during the last quarter. HighTower Advisors LLC lifted its stake in NexPoint Real Estate Finance by 17.0% during the 2nd quarter. HighTower Advisors LLC now owns 32,413 shares of the company's stock worth $502,000 after acquiring an additional 4,703 shares in the last quarter. Finally, Cetera Investment Advisers raised its stake in shares of NexPoint Real Estate Finance by 83.2% in the first quarter. Cetera Investment Advisers now owns 36,556 shares of the company's stock valued at $492,000 after acquiring an additional 16,602 shares in the last quarter. Institutional investors own 67.79% of the company's stock.

About NexPoint Real Estate Finance

NexPoint Real Estate Finance, Inc NYSE: NREF is a real estate finance company organized as a mortgage real estate investment trust. The company focuses on generating income through investments in commercial real estate debt and related credit instruments rather than directly operating properties.

Its investment activities have included transitional mortgage loans, senior and subordinate loans, mezzanine loans, preferred equity investments, and commercial mortgage-backed securities. NexPoint Real Estate Finance has emphasized lending and investment opportunities tied primarily to multifamily and other commercial real estate assets in the United States.

The company was formed in 2015 and became a publicly traded company in 2020.

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