NexPoint Residential Trust (NYSE:NXRT) Stock Rating Lowered by Wall Street Zen

Key Points

• NexPoint Residential Trust has been downgraded from a "hold" to a "sell" rating by Wall Street Zen, reflecting a significant change in analyst outlook.
• The company's recent quarterly earnings fell short of estimates, reporting $0.80 earnings per share against an expected $0.81.
• Total market capitalization for NexPoint Residential Trust currently stands at $832.06 million, with shares trading around $32.81.

Wall Street Zen lowered shares of NexPoint Residential Trust (NYSE:NXRT - Free Report) from a hold rating to a sell rating in a research report report published on Saturday morning.

NXRT has been the subject of several other reports. Zacks Research downgraded NexPoint Residential Trust from a "hold" rating to a "strong sell" rating in a report on Thursday, September 4th. Truist Financial cut their target price on NexPoint Residential Trust from $38.00 to $34.00 and set a "hold" rating on the stock in a research note on Tuesday, August 12th. Six equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Reduce" and a consensus price target of $40.88.

NexPoint Residential Trust Trading Up 0.3%

Shares of NYSE:NXRT traded up $0.11 on Friday, hitting $33.15. 1,904 shares of the company's stock were exchanged, compared to its average volume of 153,808. NexPoint Residential Trust has a 12 month low of $29.98 and a 12 month high of $48.31. The stock has a market capitalization of $840.56 million, a price-to-earnings ratio of -16.91 and a beta of 1.04. The business's 50 day simple moving average is $32.93 and its two-hundred day simple moving average is $34.79. The company has a debt-to-equity ratio of 4.22, a current ratio of 1.89 and a quick ratio of 1.89.

NexPoint Residential Trust (NYSE:NXRT - Get Free Report) last released its earnings results on Tuesday, July 29th. The financial services provider reported $0.80 earnings per share for the quarter, missing the consensus estimate of $0.81 by ($0.01). The business had revenue of $63.10 million for the quarter, compared to the consensus estimate of $63.32 million. NexPoint Residential Trust had a negative return on equity of 12.54% and a negative net margin of 19.55%. NexPoint Residential Trust has set its FY 2025 guidance at 2.750-2.750 EPS. Analysts anticipate that NexPoint Residential Trust will post 2.86 EPS for the current fiscal year.

NexPoint Residential Trust Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Monday, September 15th will be paid a dividend of $0.51 per share. The ex-dividend date is Monday, September 15th. This represents a $2.04 dividend on an annualized basis and a dividend yield of 6.2%. NexPoint Residential Trust's payout ratio is presently -104.08%.

Insider Transactions at NexPoint Residential Trust

In other news, Director Brian Mitts sold 5,000 shares of the business's stock in a transaction dated Friday, August 15th. The stock was sold at an average price of $30.92, for a total transaction of $154,600.00. Following the sale, the director owned 65,900 shares in the company, valued at approximately $2,037,628. The trade was a 7.05% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Paul Richards bought 5,000 shares of the company's stock in a transaction that occurred on Wednesday, June 25th. The stock was purchased at an average price of $32.92 per share, for a total transaction of $164,600.00. Following the transaction, the insider owned 24,689 shares of the company's stock, valued at $812,761.88. The trade was a 25.39% increase in their ownership of the stock. The disclosure for this purchase can be found here. 15.36% of the stock is currently owned by insiders.

Institutional Investors Weigh In On NexPoint Residential Trust

A number of large investors have recently bought and sold shares of NXRT. Farther Finance Advisors LLC boosted its position in NexPoint Residential Trust by 1,732.4% in the first quarter. Farther Finance Advisors LLC now owns 623 shares of the financial services provider's stock valued at $25,000 after buying an additional 589 shares during the last quarter. Ameritas Advisory Services LLC purchased a new stake in NexPoint Residential Trust in the second quarter valued at approximately $47,000. New Age Alpha Advisors LLC purchased a new stake in NexPoint Residential Trust in the first quarter valued at approximately $53,000. Quantbot Technologies LP purchased a new stake in NexPoint Residential Trust in the first quarter valued at approximately $56,000. Finally, Tower Research Capital LLC TRC lifted its holdings in NexPoint Residential Trust by 121.1% in the second quarter. Tower Research Capital LLC TRC now owns 2,656 shares of the financial services provider's stock valued at $88,000 after acquiring an additional 1,455 shares during the period. Hedge funds and other institutional investors own 76.61% of the company's stock.

NexPoint Residential Trust Company Profile

NexPoint Residential Trust is a publicly traded REIT, with its shares listed on the New York Stock Exchange under the symbol "NXRT," primarily focused on acquiring, owning and operating well-located middle-income multifamily properties with "value-add" potential in large cities and suburban submarkets of large cities, primarily in the Southeastern and Southwestern United States.