NexPoint Residential Trust, Inc. (NYSE:NXRT) Receives Average Recommendation of "Strong Sell" from Analysts

Key Points

• Analyst sentiment is negative: NexPoint Residential Trust has an average rating of “Strong Sell” from five analysts, with three sell ratings and two hold ratings. The average 12-month price target is $27.00.
• Recent earnings and guidance were mixed: The company reported $(0.27) EPS, beating estimates, and revenue of $63.54 million, slightly above expectations. It also set FY 2026 guidance at 2.570 EPS.
• Dividend yield remains high: NexPoint Residential Trust declared a quarterly dividend of $0.53 per share, payable June 30, implying an annualized dividend of $2.12 and a yield of about 7.2%.

Shares of NexPoint Residential Trust, Inc. (NYSE:NXRT - Get Free Report) have been given an average rating of "Strong Sell" by the five analysts that are presently covering the stock, MarketBeat reports. Three investment analysts have rated the stock with a sell rating and two have issued a hold rating on the company. The average 12 month target price among analysts that have issued ratings on the stock in the last year is $27.00.

Several research analysts have commented on the company. Zacks Research lowered NexPoint Residential Trust from a "hold" rating to a "strong sell" rating in a research report on Wednesday, May 6th. Citigroup reaffirmed a "market perform" rating on shares of NexPoint Residential Trust in a research report on Tuesday, March 10th. Truist Financial cut their price target on NexPoint Residential Trust from $30.00 to $27.00 and set a "hold" rating on the stock in a research report on Wednesday, March 11th. Raymond James Financial reaffirmed an "underperform" rating on shares of NexPoint Residential Trust in a research report on Friday, February 27th. Finally, Wall Street Zen raised NexPoint Residential Trust from a "sell" rating to a "hold" rating in a research report on Saturday.

NexPoint Residential Trust Price Performance

NXRT stock opened at $29.48 on Wednesday. The business has a 50 day moving average price of $26.92 and a 200 day moving average price of $28.86. The stock has a market cap of $751.45 million, a price-to-earnings ratio of -23.21 and a beta of 1.20. NexPoint Residential Trust has a fifty-two week low of $23.79 and a fifty-two week high of $35.22. The company has a quick ratio of 2.40, a current ratio of 2.40 and a debt-to-equity ratio of 5.75.

NexPoint Residential Trust (NYSE:NXRT - Get Free Report) last posted its earnings results on Tuesday, April 28th. The financial services provider reported ($0.27) earnings per share for the quarter, topping the consensus estimate 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 return on equity of 10.30% and a negative net margin of 12.67%.NexPoint Residential Trust has set its FY 2026 guidance at 2.570-2.570 EPS. Equities research analysts anticipate that NexPoint Residential Trust will post 2.2 earnings per share for the current fiscal year.

NexPoint Residential Trust Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th will be given a dividend of $0.53 per share. The ex-dividend date of this dividend is Monday, June 15th. This represents a $2.12 annualized dividend and a yield of 7.2%. NexPoint Residential Trust's payout ratio is -166.93%.

Insider Activity at NexPoint Residential Trust

In other news, insider Matt Mcgraner purchased 2,000 shares of the business's stock in a transaction on Friday, March 20th. The shares were bought at an average price of $24.37 per share, with a total value of $48,740.00. Following the completion of the transaction, the insider directly owned 331,334 shares in the company, valued at approximately $8,074,609.58. This represents a 0.61% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Paul Richards purchased 2,000 shares of the business's stock in a transaction on Monday, March 9th. The shares were purchased at an average cost of $26.34 per share, for a total transaction of $52,680.00. Following the transaction, the insider owned 28,186 shares of the company's stock, valued at $742,419.24. This trade represents a 7.64% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last ninety days, insiders have acquired 8,700 shares of company stock worth $223,777. 16.63% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of NXRT. Long Pond Capital LP increased its holdings in shares of NexPoint Residential Trust by 54.9% in the fourth quarter. Long Pond Capital LP now owns 842,870 shares of the financial services provider's stock valued at $25,370,000 after purchasing an additional 298,781 shares during the period. Goldman Sachs Group Inc. increased its holdings in shares of NexPoint Residential Trust by 49.1% in the fourth quarter. Goldman Sachs Group Inc. now owns 827,052 shares of the financial services provider's stock valued at $24,894,000 after purchasing an additional 272,391 shares during the period. DigitalBridge Group Inc. acquired a new position in shares of NexPoint Residential Trust in the third quarter valued at approximately $7,443,000. Marnell Management LLC acquired a new position in shares of NexPoint Residential Trust in the fourth quarter valued at approximately $5,220,000. Finally, Flax Pond Capital LLC acquired a new position 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.

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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