NexPoint Residential Trust (NYSE:NXRT) Announces Earnings Results, Misses Estimates By $0.01 EPS

Key Points

• NexPoint Residential Trust reported earnings of $0.80 per share, missing the consensus estimate of $0.81 by $0.01 and indicating a negative return on equity of 7.42%.
• The company announced a quarterly dividend of $0.51 per share, providing an annualized dividend of $2.04 and a yield of 6.04%, despite a negative dividend payout ratio of -159.38%.
• Several analysts downgraded NexPoint Residential Trust's stock ratings, with a consensus "Hold" rating and an average price target of $43.58.

NexPoint Residential Trust (NYSE:NXRT - Get Free Report) released its quarterly earnings results on Tuesday. The financial services provider reported $0.80 earnings per share for the quarter, missing analysts' consensus estimates of $0.81 by ($0.01), Zacks reports. 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 for the quarter, compared to analyst estimates of $63.32 million. NexPoint Residential Trust updated its FY 2025 guidance to 2.750-2.750 EPS.

NexPoint Residential Trust Stock Performance

Shares of NYSE NXRT traded down $0.34 during midday trading on Friday, reaching $30.84. 256,275 shares of the company traded hands, compared to its average volume of 165,532. NexPoint Residential Trust has a 52 week low of $29.98 and a 52 week high of $48.37. The stock has a 50-day moving average price of $33.71 and a 200 day moving average price of $36.63. The company has a debt-to-equity ratio of 4.22, a current ratio of 1.89 and a quick ratio of 2.65. The company has a market cap of $782.10 million, a price-to-earnings ratio of -15.73, a PEG ratio of 1.85 and a beta of 1.04.

NexPoint Residential Trust Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Monday, September 15th will be paid a dividend of $0.51 per share. This represents a $2.04 dividend on an annualized basis and a dividend yield of 6.6%. The ex-dividend date is Monday, September 15th. NexPoint Residential Trust's payout ratio is currently -104.08%.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on NXRT. Truist Financial reduced their price objective on 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. Wall Street Zen upgraded NexPoint Residential Trust from a "sell" rating to a "hold" rating in a research note on Saturday. Raymond James Financial cut NexPoint Residential Trust from an "outperform" rating to a "market perform" rating in a research note on Thursday, May 15th. Compass Point restated a "neutral" rating and set a $42.50 price objective (down from $50.00) on shares of NexPoint Residential Trust in a research note on Tuesday, May 13th. Finally, Citizens Jmp cut NexPoint Residential Trust from an "outperform" rating to a "market perform" rating in a research note on Monday, May 19th. Eight research analysts have rated the stock with a hold rating, Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $43.58.

Insider Buying and Selling at NexPoint Residential Trust

In related news, insider Paul Richards acquired 5,000 shares of the business's stock in a transaction that occurred on Wednesday, June 25th. The shares were acquired at an average cost of $32.92 per share, for a total transaction of $164,600.00. Following the completion of the purchase, the insider directly owned 24,689 shares in the company, valued at $812,761.88. This trade represents a 25.39% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, 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

A number of hedge funds and other institutional investors have recently modified their holdings of NXRT. Jane Street Group LLC bought a new stake in shares of NexPoint Residential Trust during the first quarter valued at about $3,410,000. Millennium Management LLC grew its holdings in NexPoint Residential Trust by 15.6% during the first quarter. Millennium Management LLC now owns 328,683 shares of the financial services provider's stock worth $12,993,000 after acquiring an additional 44,391 shares during the period. Jacobs Levy Equity Management Inc. acquired a new position in NexPoint Residential Trust during the first quarter worth about $341,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in NexPoint Residential Trust by 5.8% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 132,034 shares of the financial services provider's stock worth $5,219,000 after acquiring an additional 7,217 shares during the period. Finally, Strs Ohio acquired a new position in NexPoint Residential Trust during the first quarter worth about $158,000. 76.61% of the stock is currently owned by institutional investors.

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.