NexPoint Residential Trust, Inc. (NYSE:NXRT) Receives Average Recommendation of "Reduce" from Brokerages

Key Points

• Analyst sentiment is cautious: Six analysts give NexPoint Residential Trust an average “Reduce” rating, with two sells and four holds. The average 12-month price target is $22.00, below the reported share price of $23.78.
• Recent results modestly exceeded expectations: The company reported quarterly EPS of -$0.34 versus consensus of -$0.37 and revenue of $64.61 million compared with expectations of $63.78 million. Shares remain near their one-year low and below both their 50-day and 200-day moving averages.
• The dividend offers a high yield but reflects financial pressure: NXRT declared a quarterly dividend of $0.53, or $2.12 annualized, implying an 8.9% yield. However, the company reported negative net margin and return on equity, while its dividend payout ratio stood at -159.40%.

Shares of NexPoint Residential Trust, Inc. (NYSE:NXRT - Get Free Report) have earned an average recommendation of "Reduce" from the six analysts that are covering the stock, Marketbeat.com reports. Two analysts have rated the stock with a sell recommendation and four have issued a hold recommendation on the company. The average 12-month target price among brokerages that have issued a report on the stock in the last year is $22.00.

NXRT has been the topic of several recent analyst reports. Citizens Jmp reissued a "market perform" rating on shares of NexPoint Residential Trust in a research note on Thursday, August 20th. Deutsche Bank Aktiengesellschaft set a $18.00 price target on NexPoint Residential Trust in a report on Monday, July 20th. Zacks Research lowered NexPoint Residential Trust from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, August 25th. Citigroup restated a "market perform" rating on shares of NexPoint Residential Trust in a report on Thursday, August 20th. Finally, Truist Financial lowered their price objective on NexPoint Residential Trust from $27.00 to $26.00 and set a "hold" rating for the company in a research report on Tuesday, June 30th.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Allworth Financial LP acquired a new stake in shares of NexPoint Residential Trust in the second quarter worth approximately $33,000. Ameritas Advisory Services LLC acquired a new position in shares of NexPoint Residential Trust in the 2nd quarter valued at $39,000. PNC Financial Services Group Inc. grew its stake in shares of NexPoint Residential Trust by 29.9% during the 1st quarter. PNC Financial Services Group Inc. now owns 1,723 shares of the financial services provider's stock valued at $43,000 after buying an additional 397 shares during the period. Federation des caisses Desjardins du Quebec grew its stake in shares of NexPoint Residential Trust by 27.4% during the 4th quarter. Federation des caisses Desjardins du Quebec now owns 1,796 shares of the financial services provider's stock valued at $54,000 after buying an additional 386 shares during the period. Finally, Tower Research Capital LLC TRC raised its position in shares of NexPoint Residential Trust by 121.1% in the 2nd quarter. Tower Research Capital LLC TRC now owns 2,656 shares of the financial services provider's stock worth $88,000 after buying an additional 1,455 shares during the period. Institutional investors and hedge funds own 76.61% of the company's stock.

NexPoint Residential Trust Price Performance

Shares of NYSE:NXRT opened at $23.78 on Friday. The business's fifty day moving average price is $25.92 and its two-hundred day moving average price is $26.95. The stock has a market cap of $607.58 million, a PE ratio of -17.88 and a beta of 1.15. The company has a debt-to-equity ratio of 6.41, a quick ratio of 1.92 and a current ratio of 1.92. NexPoint Residential Trust has a one year low of $23.10 and a one year high of $34.87.

NexPoint Residential Trust (NYSE:NXRT - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The financial services provider reported ($0.34) earnings per share for the quarter, topping analysts' consensus estimates of ($0.37) by $0.03. The company had revenue of $64.61 million during the quarter, compared to analysts' expectations of $63.78 million. NexPoint Residential Trust had a negative return on equity of 11.75% and a negative net margin of 13.22%.NexPoint Residential Trust has set its FY 2026 guidance at 2.450-2.450 EPS. On average, analysts forecast that NexPoint Residential Trust will post 2.38 EPS for the current fiscal year.

NexPoint Residential Trust Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th will be paid a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a yield of 8.9%. The ex-dividend date of this dividend is Tuesday, September 15th. NexPoint Residential Trust's dividend payout ratio (DPR) is presently -159.40%.

NexPoint Residential Trust Company Profile

NexPoint Residential Trust is a real estate investment trust focused on the acquisition, leasing and management of single‐family rental homes across the United States. The company targets suburban and Sun Belt markets with favorable demographic trends, seeking to build a diversified portfolio of standalone residences that serve the growing demand for quality rental housing. By concentrating on professionally managed homes rather than multi‐family apartments, NexPoint Residential Trust aims to offer tenants the benefits of privacy and space, while generating predictable rental income for investors.

The firm’s investment strategy combines direct acquisitions of built single‐family homes with selective joint ventures and partnerships to optimize scale and geographic diversification.

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