NexPoint Residential Trust (NYSE:NXRT) Reaches New 52-Week Low - Here's What Happened

Key Points

• NexPoint Residential Trust's shares hit a new 52-week low of $30.23, down from a previous close of $31.18, indicating a significant decline in stock performance.
• Several financial analysts have downgraded the stock, with an average rating of "Hold" and a price target decline to $43.58 from higher estimates.
• The company reported earnings per share of $0.80 for the last quarter, missing analyst expectations, alongside a negative net margin of 19.55%.

NexPoint Residential Trust, Inc. (NYSE:NXRT - Get Free Report)'s share price hit a new 52-week low on Friday . The company traded as low as $30.34 and last traded at $30.23, with a volume of 35806 shares. The stock had previously closed at $31.18.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on NXRT. Citizens Jmp lowered NexPoint Residential Trust from an "outperform" rating to a "market perform" rating in a research note on Monday, May 19th. Wall Street Zen raised NexPoint Residential Trust from a "sell" rating to a "hold" rating in a research note on Saturday. Raymond James Financial lowered NexPoint Residential Trust from an "outperform" rating to a "market perform" rating in a research note on Thursday, May 15th. Compass Point reissued a "neutral" rating and set a $42.50 price target (down previously from $50.00) on shares of NexPoint Residential Trust in a research note on Tuesday, May 13th. Finally, JMP Securities reiterated a "market perform" rating on shares of NexPoint Residential Trust in a report on Monday, May 19th. Eight research analysts have rated the stock with a hold rating, According to data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $42.30.

NexPoint Residential Trust Stock Performance

The company has a debt-to-equity ratio of 4.22, a quick ratio of 1.89 and a current ratio of 1.89. The company has a market cap of $787.43 million, a price-to-earnings ratio of -15.84, a price-to-earnings-growth ratio of 1.83 and a beta of 1.04. The stock's fifty day simple moving average is $33.71 and its two-hundred day simple moving average is $36.59.

NexPoint Residential Trust (NYSE:NXRT - Get Free Report) last released its quarterly earnings results on Tuesday, July 29th. The financial services provider reported $0.80 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.81 by ($0.01). NexPoint Residential Trust had a negative return on equity of 12.54% and a negative net margin of 19.55%. The firm had revenue of $63.10 million for the quarter, compared to analysts' expectations of $63.32 million. Equities research analysts anticipate that NexPoint Residential Trust, Inc. will post 2.86 EPS for the current 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 issued a $0.51 dividend. The ex-dividend date of this dividend is Monday, September 15th. This represents a $2.04 annualized dividend and a dividend yield of 6.6%. NexPoint Residential Trust's payout ratio is -104.08%.

Insider Activity at NexPoint Residential Trust

In other NexPoint Residential Trust news, insider Paul Richards purchased 5,000 shares of the firm's stock in a transaction dated Wednesday, June 25th. The stock was acquired at an average cost of $32.92 per share, with a total value of $164,600.00. Following the acquisition, the insider owned 24,689 shares of the company's stock, valued at approximately $812,761.88. This represents a 25.39% increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this link. Company insiders own 15.36% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of NXRT. Raymond James Financial Inc. acquired a new position in shares of NexPoint Residential Trust in the 4th quarter valued at about $575,000. Sei Investments Co. boosted its stake in NexPoint Residential Trust by 1.8% during the 4th quarter. Sei Investments Co. now owns 34,982 shares of the financial services provider's stock valued at $1,461,000 after purchasing an additional 631 shares during the period. KLP Kapitalforvaltning AS acquired a new position in NexPoint Residential Trust during the 4th quarter valued at about $211,000. JPMorgan Chase & Co. boosted its stake in NexPoint Residential Trust by 27.3% during the 4th quarter. JPMorgan Chase & Co. now owns 149,020 shares of the financial services provider's stock valued at $6,222,000 after purchasing an additional 31,930 shares during the period. Finally, Norges Bank acquired a new position in NexPoint Residential Trust during the 4th quarter valued at about $1,127,000. 76.61% of the stock is owned by institutional investors and hedge funds.

About NexPoint Residential Trust

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.