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

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 during trading on Friday . The company traded as low as $30.34 and last traded at $30.23, with a volume of 35806 shares traded. The stock had previously closed at $31.18.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on NXRT shares. Compass Point reiterated a "neutral" rating and issued a $42.50 price target (down previously from $50.00) on shares of NexPoint Residential Trust in a report on Tuesday, May 13th. Citizens Jmp cut shares of NexPoint Residential Trust from an "outperform" rating to a "market perform" rating in a research note on Monday, May 19th. Raymond James Financial cut shares of NexPoint Residential Trust from an "outperform" rating to a "market perform" rating in a research note on Thursday, May 15th. Truist Financial lowered their price objective on shares of NexPoint Residential Trust from $42.00 to $38.00 and set a "hold" rating on the stock in a research note on Thursday, May 29th. Finally, Wall Street Zen raised shares of NexPoint Residential Trust from a "sell" rating to a "hold" rating in a research note on Saturday. Eight investment analysts have rated the stock with a hold rating, Based on data from MarketBeat.com, NexPoint Residential Trust currently has a consensus rating of "Hold" and a consensus target price of $42.30.

NexPoint Residential Trust Price Performance

The company has a market capitalization of $792.86 million, a price-to-earnings ratio of -15.90, a PEG ratio of 1.83 and a beta of 1.04. The company's 50 day simple moving average is $33.65 and its 200-day simple moving average is $36.53. The company has a current ratio of 1.89, a quick ratio of 1.89 and a debt-to-equity ratio of 4.22.

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 (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 company had revenue of $63.10 million during the quarter, compared to analyst estimates of $63.32 million. On average, equities research analysts predict that NexPoint Residential Trust, Inc. will post 2.86 earnings per share for the current fiscal year.

NexPoint Residential Trust Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Monday, September 15th will be given a dividend of $0.51 per share. The ex-dividend date of this dividend is Monday, September 15th. This represents a $2.04 dividend on an annualized basis and a dividend yield of 6.5%. NexPoint Residential Trust's dividend payout ratio (DPR) is presently -104.08%.

Insider Buying and Selling

In other news, insider Paul Richards purchased 5,000 shares of NexPoint Residential Trust stock in a transaction dated Wednesday, June 25th. The stock was bought at an average price of $32.92 per share, with a total value of $164,600.00. Following the completion of the acquisition, the insider owned 24,689 shares in the company, valued at $812,761.88. The trade was a 25.39% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 15.36% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On NexPoint Residential Trust

Several hedge funds and other institutional investors have recently bought and sold shares of NXRT. Farther Finance Advisors LLC raised its holdings in NexPoint Residential Trust by 1,732.4% during the 1st quarter. Farther Finance Advisors LLC now owns 623 shares of the financial services provider's stock worth $25,000 after buying an additional 589 shares during the period. Johnson Financial Group Inc. acquired a new stake in NexPoint Residential Trust during the 4th quarter worth about $35,000. Ameritas Advisory Services LLC acquired a new stake in NexPoint Residential Trust during the 2nd quarter worth about $47,000. New Age Alpha Advisors LLC acquired a new stake in NexPoint Residential Trust during the 1st quarter worth about $53,000. Finally, Quantbot Technologies LP acquired a new stake in NexPoint Residential Trust during the 1st quarter worth about $56,000. 76.61% of the stock is currently owned by institutional investors.

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.