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

Key Points

• Analyst sentiment is mixed: Five analysts collectively rate NexPoint Residential Trust “Hold,” with two sell ratings, two hold ratings and one strong-buy rating. The average 12-month price target is $22.00, below the stock’s reported $25.55 opening price.
• NexPoint reported quarterly EPS of -$0.34, beating the consensus estimate of -$0.37, while revenue of $64.61 million exceeded expectations of $63.78 million. Analysts expect full-year EPS of $2.36, compared with company guidance of $2.45.
• The company declared a quarterly dividend of $0.53, or $2.12 annually, representing an 8.3% yield. However, its negative payout ratio and negative net margin highlight ongoing profitability concerns.

Shares of NexPoint Residential Trust, Inc. (NYSE:NXRT - Get Free Report) have been given an average rating of "Hold" by the five analysts that are currently covering the firm, MarketBeat Ratings reports. Two equities research analysts have rated the stock with a sell rating, two have assigned a hold rating and one has issued a strong buy rating on the company. The average 1-year price objective among brokers that have issued ratings on the stock in the last year is $22.00.

A number of equities research analysts recently issued reports on NXRT shares. 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. Truist Financial reduced their price objective on shares of 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. Deutsche Bank Aktiengesellschaft set a $18.00 price objective on shares of NexPoint Residential Trust in a report on Monday, July 20th. Weiss Ratings reiterated a "sell (d+)" rating on shares of NexPoint Residential Trust in a research report on Friday, July 31st. Finally, Zacks Research raised shares of NexPoint Residential Trust from a "hold" rating to a "strong-buy" rating in a research note on Monday, July 27th.

NexPoint Residential Trust Stock Performance

Shares of NXRT stock opened at $25.55 on Monday. The company has a market capitalization of $652.78 million, a P/E ratio of -19.21 and a beta of 1.18. The business's 50 day moving average is $27.34 and its two-hundred day moving average is $27.76. The company has a current ratio of 1.92, a quick ratio of 1.92 and a debt-to-equity ratio of 6.41. NexPoint Residential Trust has a 12-month low of $23.79 and a 12-month high of $34.87.

NexPoint Residential Trust (NYSE:NXRT - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The financial services provider reported ($0.34) EPS for the quarter, beating analysts' consensus estimates of ($0.37) by $0.03. The business 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. Analysts expect that NexPoint Residential Trust will post 2.36 EPS for the current fiscal year.

NexPoint Residential Trust Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th will be paid a $0.53 dividend. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $2.12 dividend on an annualized basis and a yield of 8.3%. NexPoint Residential Trust's dividend payout ratio (DPR) is currently -159.40%.

Hedge Funds Weigh In On NexPoint Residential Trust

A number of hedge funds have recently made changes to their positions in NXRT. UBS Group AG lifted its stake in NexPoint Residential Trust by 44.7% in the 4th quarter. UBS Group AG now owns 115,555 shares of the financial services provider's stock worth $3,478,000 after purchasing an additional 35,683 shares in the last quarter. Vanguard Group Inc. grew its position in shares of NexPoint Residential Trust by 3.0% in the fourth quarter. Vanguard Group Inc. now owns 2,436,034 shares of the financial services provider's stock valued at $73,325,000 after purchasing an additional 70,310 shares in the last quarter. Marnell Management LLC acquired a new stake in shares of NexPoint Residential Trust in the fourth quarter valued at approximately $5,220,000. Strs Ohio increased its holdings in shares of NexPoint Residential Trust by 24.1% in the fourth quarter. Strs Ohio now owns 146,900 shares of the financial services provider's stock valued at $4,422,000 after purchasing an additional 28,500 shares during the last quarter. Finally, Flax Pond Capital LLC acquired a new stake in shares of NexPoint Residential Trust in the first quarter valued at approximately $4,047,000. Institutional investors and hedge funds own 76.61% of the company's stock.

About NexPoint Residential Trust

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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