NexPoint Residential Trust (NYSE:NXRT) Announces Quarterly Earnings Results

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) issued its quarterly earnings results on Tuesday. The financial services provider reported $0.80 earnings per share for the quarter, missing the consensus estimate 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 business had revenue of $63.10 million during the quarter, compared to analysts' expectations of $63.32 million. NexPoint Residential Trust updated its FY 2025 guidance to 2.750-2.750 EPS.

NexPoint Residential Trust Stock Performance

NXRT traded down $0.41 on Wednesday, reaching $33.04. 309,135 shares of the stock were exchanged, compared to its average volume of 143,945. The company's 50-day moving average price is $33.85 and its 200 day moving average price is $36.76. NexPoint Residential Trust has a fifty-two week low of $30.98 and a fifty-two week high of $48.37. 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 firm has a market capitalization of $835.25 million, a PE ratio of -16.86, a PEG ratio of 1.98 and a beta of 1.06.

NexPoint Residential Trust Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Monday, September 15th will be given 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 yield of 6.17%. NexPoint Residential Trust's dividend payout ratio is currently -159.38%.

Insider Buying and Selling

In other news, insider Paul Richards purchased 5,000 shares of the stock in a transaction on 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 transaction, 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 purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 15.36% of the company's stock.

Hedge Funds Weigh In On NexPoint Residential Trust

Several institutional investors and hedge funds have recently modified their holdings of NXRT. Royal Bank of Canada lifted its holdings in shares of NexPoint Residential Trust by 5.7% in the 1st quarter. Royal Bank of Canada now owns 54,612 shares of the financial services provider's stock valued at $2,159,000 after buying an additional 2,942 shares during the period. Jacobs Levy Equity Management Inc. acquired a new position in shares of NexPoint Residential Trust in the 1st quarter valued at about $341,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of NexPoint Residential Trust by 4.5% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 13,281 shares of the financial services provider's stock valued at $525,000 after buying an additional 573 shares during the period. Millennium Management LLC lifted its holdings in shares of NexPoint Residential Trust by 15.6% in the 1st quarter. Millennium Management LLC now owns 328,683 shares of the financial services provider's stock valued at $12,993,000 after buying an additional 44,391 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of NexPoint Residential Trust by 5.8% in the 1st 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 valued at $5,219,000 after buying an additional 7,217 shares during the period. Institutional investors and hedge funds own 76.61% of the company's stock.

Analysts Set New Price Targets

NXRT has been the topic of several research analyst reports. 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 reissued a "neutral" rating and issued a $42.50 price objective (down previously from $50.00) on shares of NexPoint Residential Trust in a research note on Tuesday, May 13th. JMP Securities reissued a "market perform" rating on shares of NexPoint Residential Trust in a research note on Monday, May 19th. Truist Financial dropped 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. Finally, Citizens Jmp cut NexPoint Residential Trust from an "outperform" rating to a "market perform" rating in a research note on Monday, May 19th. One investment analyst has rated the stock with a sell rating and seven have assigned a hold rating to the company. According to data from MarketBeat.com, NexPoint Residential Trust presently has an average rating of "Hold" and a consensus target price of $43.58.

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.