NexPoint Residential Trust (NYSE:NXRT) Cut to "Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded NexPoint Residential Trust (NYSE:NXRT) from “hold” to “sell,” adding to a generally bearish analyst backdrop. The stock now carries an average MarketBeat rating of Strong Sell with a consensus target price of $27.00.
• The company recently beat quarterly expectations, reporting EPS of ($0.27) versus the expected ($0.37) and revenue of $63.54 million versus $63.20 million estimated. Despite the beat, NexPoint still posted negative net margin and return on equity.
• NXRT shares opened at $29.03, above the $27.00 consensus target, while insiders have been buying stock and now own 16.63% of the company. Institutional investors also hold a large stake, owning 76.61% of shares.

NexPoint Residential Trust (NYSE:NXRT - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a report released on Sunday.

Several other equities research analysts also recently weighed in on the stock. Zacks Research downgraded shares of NexPoint Residential Trust from a "hold" rating to a "strong sell" rating in a research report on Wednesday, May 6th. Weiss Ratings raised shares of NexPoint Residential Trust from a "sell (d)" rating to a "sell (d+)" rating in a research report on Monday, May 4th. Truist Financial dropped their target price on shares of NexPoint Residential Trust from $30.00 to $27.00 and set a "hold" rating for the company in a research report on Wednesday, March 11th. Citigroup reissued a "market perform" rating on shares of NexPoint Residential Trust in a research report on Tuesday, March 10th. Finally, Raymond James Financial reissued an "underperform" rating on shares of NexPoint Residential Trust in a research report on Friday, February 27th. Two investment analysts have rated the stock with a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat.com, NexPoint Residential Trust currently has an average rating of "Strong Sell" and a consensus target price of $27.00.

NexPoint Residential Trust Price Performance

NXRT stock opened at $29.03 on Friday. NexPoint Residential Trust has a 12-month low of $23.79 and a 12-month high of $35.22. The company has a current ratio of 2.40, a quick ratio of 2.40 and a debt-to-equity ratio of 5.75. The company has a market cap of $740.05 million, a price-to-earnings ratio of -22.86 and a beta of 1.20. The firm has a 50 day moving average of $27.14 and a 200-day moving average of $28.84.

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) EPS for the quarter, topping analysts' consensus estimates of ($0.37) by $0.10. The firm had revenue of $63.54 million for the quarter, compared to analyst estimates of $63.20 million. NexPoint Residential Trust had a negative net margin of 12.67% and a negative return on equity of 10.30%. NexPoint Residential Trust has set its FY 2026 guidance at 2.570-2.570 EPS. As a group, equities analysts expect that NexPoint Residential Trust will post 2.2 EPS for the current fiscal year.

Insider Transactions at NexPoint Residential Trust

In other NexPoint Residential Trust news, insider Matt Mcgraner acquired 2,000 shares of the stock in a transaction that occurred on Friday, March 20th. The stock was acquired at an average price of $24.37 per share, with a total value of $48,740.00. Following 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 ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Paul Richards acquired 1,500 shares of the stock in a transaction that occurred on Thursday, March 19th. The shares were acquired at an average cost of $24.81 per share, with a total value of $37,215.00. Following the transaction, the insider owned 30,359 shares in the company, valued at approximately $753,206.79. The trade was a 5.20% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last ninety days, insiders have purchased 8,700 shares of company stock valued at $223,777. Insiders own 16.63% of the company's stock.

Institutional Investors Weigh In On NexPoint Residential Trust

Institutional investors have recently modified their holdings of the business. Smartleaf Asset Management LLC grew its position in shares of NexPoint Residential Trust by 205.0% during the 3rd quarter. Smartleaf Asset Management LLC now owns 857 shares of the financial services provider's stock valued at $27,000 after buying an additional 576 shares during the last quarter. PNC Financial Services Group Inc. grew its position 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 last quarter. Federation des caisses Desjardins du Quebec grew its position 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 last quarter. Tower Research Capital LLC TRC grew its position in shares of NexPoint Residential Trust by 121.1% during the 2nd quarter. Tower Research Capital LLC TRC now owns 2,656 shares of the financial services provider's stock valued at $88,000 after buying an additional 1,455 shares during the last quarter. Finally, IFM Investors Pty Ltd bought a new stake in shares of NexPoint Residential Trust during the 1st quarter valued at about $90,000. Institutional investors 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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