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

Key Points

• NexPoint Residential Trust has a consensus “Reduce” rating from six analysts, including two sells and four holds, with an average 12-month price target of $24.50.
• NXRT shares opened at $19.84, near their 52-week low of $19.41, while the company carries substantial leverage with a 6.41 debt-to-equity ratio.
• The REIT announced a quarterly dividend of $0.53 per share, or $2.12 annually, representing a 10.7% yield; its latest results beat expectations, with quarterly revenue of $64.61 million and adjusted EPS of negative $0.34.

NexPoint Residential Trust, Inc. (NYSE:NXRT - Get Free Report) has been assigned a consensus rating of "Reduce" from the six research firms that are presently covering the firm, Marketbeat.com reports. Two analysts have rated the stock with a sell rating and four have given a hold rating to the company. The average 1-year target price among brokerages that have issued ratings on the stock in the last year is $24.50.

Several research firms recently commented on NXRT. Citigroup reissued a "market perform" rating on shares of NexPoint Residential Trust in a research note on Thursday, August 20th. Citizens Jmp reaffirmed a "market perform" rating on shares of NexPoint Residential Trust in a report on Thursday, August 20th. Zacks Research downgraded NexPoint Residential Trust from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 25th. Wall Street Zen raised NexPoint Residential Trust from a "sell" rating to a "hold" rating in a research report on Saturday, July 4th. Finally, Weiss Ratings reaffirmed a "sell (d+)" rating on shares of NexPoint Residential Trust in a report on Friday, July 31st.

Hedge Funds Weigh In On NexPoint Residential Trust

Several institutional investors and hedge funds have recently modified their holdings of the stock. Allworth Financial LP bought a new position in NexPoint Residential Trust during the second quarter valued at about $33,000. Ameritas Advisory Services LLC bought a new stake in shares of NexPoint Residential Trust during the 2nd quarter worth about $39,000. PNC Financial Services Group Inc. increased its holdings 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 acquiring an additional 397 shares during the last quarter. Integrated Wealth Concepts LLC acquired a new position in shares of NexPoint Residential Trust during the 2nd quarter valued at about $51,000. Finally, IFM Investors Pty Ltd bought a new position in shares of NexPoint Residential Trust in the 1st quarter valued at approximately $90,000. 76.61% of the stock is currently owned by hedge funds and other institutional investors.

NexPoint Residential Trust Trading Up 1.0%

Shares of NYSE:NXRT opened at $19.84 on Tuesday. The company has a quick ratio of 1.92, a current ratio of 1.92 and a debt-to-equity ratio of 6.41. The company's 50-day moving average price is $23.89 and its 200 day moving average price is $26.14. The company has a market cap of $506.86 million, a PE ratio of -14.92, a P/E/G ratio of 0.50 and a beta of 1.15. NexPoint Residential Trust has a fifty-two week low of $19.41 and a fifty-two week high of $32.36.

NexPoint Residential Trust (NYSE:NXRT - Get Free Report) last posted its earnings results on Tuesday, August 4th. The financial services provider reported ($0.34) EPS for the quarter, beating the consensus estimate of ($0.37) by $0.03. NexPoint Residential Trust had a negative return on equity of 11.75% and a negative net margin of 13.22%.The firm had revenue of $64.61 million for the quarter, compared to analysts' expectations of $63.78 million. NexPoint Residential Trust has set its FY 2026 guidance at 2.450-2.450 EPS. Sell-side analysts anticipate that NexPoint Residential Trust will post 2.25 earnings per share for the current year.

NexPoint Residential Trust Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th will be paid a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a yield of 10.7%. The ex-dividend date of this dividend is Tuesday, September 15th. NexPoint Residential Trust's payout ratio is -159.40%.

About NexPoint Residential Trust

NexPoint Residential Trust, Inc is a real estate investment trust (REIT) that owns and operates multifamily apartment communities in the United States. The company focuses primarily on workforce housing and value-add properties, seeking to improve communities through renovations, property management initiatives and other capital improvements.

NexPoint Residential Trust's portfolio has historically been concentrated in the Sun Belt, including markets across the southeastern and southwestern United States.

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