Flax Pond Capital LLC Makes New $4.05 Million Investment in NexPoint Residential Trust, Inc. $NXRT

Key Points

• Flax Pond Capital purchased 161,893 shares of NexPoint Residential Trust worth approximately $4.05 million, representing a 0.64% stake and 3.3% of the fund’s portfolio. Institutional investors collectively own 76.61% of NXRT.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and a $22.00 average price target. Recent actions included upgrades from Zacks Research and Wall Street Zen, while Truist lowered its target to $26.
• NXRT reported quarterly revenue of $63.54 million and an adjusted loss of $0.27 per share, beating estimates. The company declared a quarterly dividend of $0.53, equating to an 8.0% annualized yield, despite a negative payout ratio.

Flax Pond Capital LLC bought a new stake in shares of NexPoint Residential Trust, Inc. (NYSE:NXRT - Free Report) during the 1st quarter, according to its most recent Form 13F filing with the SEC. The fund bought 161,893 shares of the financial services provider's stock, valued at approximately $4,047,000. NexPoint Residential Trust accounts for 3.3% of Flax Pond Capital LLC's investment portfolio, making the stock its 12th biggest position. Flax Pond Capital LLC owned 0.64% of NexPoint Residential Trust at the end of the most recent quarter.

Other hedge funds and other institutional investors have also modified their holdings of the company. Tudor Investment Corp ET AL grew its position in shares of NexPoint Residential Trust by 63.0% during the 3rd quarter. Tudor Investment Corp ET AL now owns 129,137 shares of the financial services provider's stock worth $4,161,000 after buying an additional 49,902 shares during the period. UBS Group AG lifted its position in shares of NexPoint Residential Trust by 44.7% during the 4th quarter. UBS Group AG now owns 115,555 shares of the financial services provider's stock valued at $3,478,000 after acquiring an additional 35,683 shares during the period. Vanguard Group Inc. lifted its position in shares of NexPoint Residential Trust by 3.0% during the 4th quarter. Vanguard Group Inc. now owns 2,436,034 shares of the financial services provider's stock valued at $73,325,000 after acquiring an additional 70,310 shares during the period. Marnell Management LLC bought a new position in NexPoint Residential Trust during the fourth quarter worth $5,220,000. Finally, Strs Ohio boosted its stake in NexPoint Residential Trust by 24.1% during the fourth quarter. Strs Ohio now owns 146,900 shares of the financial services provider's stock worth $4,422,000 after acquiring an additional 28,500 shares in the last quarter. Institutional investors and hedge funds own 76.61% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts have weighed in on the stock. Wall Street Zen raised shares of NexPoint Residential Trust from a "sell" rating to a "hold" rating in a research note on Saturday, July 4th. Zacks Research upgraded NexPoint Residential Trust from a "hold" rating to a "strong-buy" rating in a research note on Monday. Deutsche Bank Aktiengesellschaft set a $18.00 target price on NexPoint Residential Trust in a research note on Monday, July 20th. Weiss Ratings raised NexPoint Residential Trust from a "sell (d)" rating to a "sell (d+)" rating in a research note on Monday, May 4th. Finally, Truist Financial cut their price target on NexPoint Residential Trust from $27.00 to $26.00 and set a "hold" rating on the stock in a report on Tuesday, June 30th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $22.00.

NexPoint Residential Trust Stock Performance

NXRT opened at $26.54 on Friday. NexPoint Residential Trust, Inc. has a 1-year low of $23.79 and a 1-year high of $34.87. The company has a market cap of $676.38 million, a price-to-earnings ratio of -20.89 and a beta of 1.18. The company's fifty day moving average price is $27.84 and its two-hundred day moving average price is $28.01. The company has a current ratio of 2.40, a quick ratio of 2.40 and a debt-to-equity ratio of 5.75.

NexPoint Residential Trust (NYSE:NXRT - Get Free Report) last issued its quarterly earnings data on Tuesday, April 28th. The financial services provider reported ($0.27) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.37) by $0.10. The firm had revenue of $63.54 million during the quarter, compared to analysts' expectations of $63.20 million. NexPoint Residential Trust had a negative net margin of 12.67% and a negative return on equity of 10.30%. On average, analysts expect that NexPoint Residential Trust, Inc. will post 2.36 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. Investors of record on Tuesday, September 15th will be given a $0.53 dividend. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $2.12 annualized dividend and a yield of 8.0%. NexPoint Residential Trust's dividend payout ratio (DPR) is presently -166.93%.

NexPoint Residential Trust 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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