NexPoint Residential Trust (NYSE:NXRT) Lowered to "Strong Sell" Rating by Zacks Research

Key Points

• NexPoint Residential Trust has been downgraded by Zacks Research from a "hold" rating to a "strong sell" rating, following similar downgrades from other research firms.
• The stock's average target price is now $41.50, with a current trading price of $34.69, reflecting a twelve month low of $29.98 and a high of $48.31.
• Recent insider activity includes an increase in holdings by Paul Richards, who purchased 5,000 shares, and a sale by director Brian Mitts of 5,000 shares at a lower price.

Zacks Research lowered shares of NexPoint Residential Trust (NYSE:NXRT - Free Report) from a hold rating to a strong sell rating in a report issued on Thursday,Zacks.com reports.

A number of other research firms have also issued reports on NXRT. JMP Securities reissued a "market perform" rating on shares of NexPoint Residential Trust in a research report on Monday, May 19th. 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. Compass Point reaffirmed a "neutral" rating and set a $42.50 price objective (down previously from $50.00) on shares of NexPoint Residential Trust in a research note on Tuesday, May 13th. Truist Financial dropped their price objective on shares of 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. Finally, Wall Street Zen raised shares of NexPoint Residential Trust from a "sell" rating to a "hold" rating in a research note on Saturday, August 23rd. Seven investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Reduce" and a consensus price target of $41.50.

NexPoint Residential Trust Stock Performance

NXRT traded down $0.11 during trading on Thursday, reaching $34.57. 176,935 shares of the company's stock were exchanged, compared to its average volume of 179,750. NexPoint Residential Trust has a 1 year low of $29.98 and a 1 year high of $48.31. The company has a debt-to-equity ratio of 4.22, a current ratio of 1.89 and a quick ratio of 1.89. The stock has a market capitalization of $876.57 million, a P/E ratio of -17.64, a price-to-earnings-growth ratio of 2.08 and a beta of 1.04. The company's fifty day simple moving average is $33.08 and its 200-day simple moving average is $35.34.

NexPoint Residential Trust (NYSE:NXRT - Get Free Report) last posted its quarterly earnings results on Tuesday, July 29th. The financial services provider reported $0.80 earnings per share (EPS) for the quarter, missing analysts' consensus estimates 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 business had revenue of $63.10 million for the quarter, compared to analysts' expectations of $63.32 million. NexPoint Residential Trust has set its FY 2025 guidance at 2.750-2.750 EPS. As a group, research analysts predict that NexPoint Residential Trust 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. Investors of record on Monday, September 15th will be paid a $0.51 dividend. The ex-dividend date of this dividend is Monday, September 15th. This represents a $2.04 dividend on an annualized basis and a yield of 5.9%. NexPoint Residential Trust's dividend payout ratio (DPR) is currently -104.08%.

Insiders Place Their Bets

In related news, Director Brian Mitts sold 5,000 shares of NexPoint Residential Trust stock in a transaction on Friday, August 15th. The shares were sold at an average price of $30.92, for a total value of $154,600.00. Following the sale, the director owned 65,900 shares of the company's stock, valued at approximately $2,037,628. This trade represents a 7.05% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Paul Richards purchased 5,000 shares of the company's stock in a transaction that occurred on Wednesday, June 25th. The stock was bought at an average cost of $32.92 per share, for a total transaction of $164,600.00. Following 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 position. The disclosure for this purchase can be found here. 15.36% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On NexPoint Residential Trust

A number of institutional investors have recently added to or reduced their stakes in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in NexPoint Residential Trust by 2.1% in the 4th quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 12,708 shares of the financial services provider's stock valued at $531,000 after buying an additional 266 shares during the period. The Manufacturers Life Insurance Company raised its holdings in NexPoint Residential Trust by 4.9% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 8,546 shares of the financial services provider's stock valued at $285,000 after buying an additional 402 shares during the period. Capital Square LLC raised its holdings in NexPoint Residential Trust by 2.8% in the 2nd quarter. Capital Square LLC now owns 15,831 shares of the financial services provider's stock valued at $540,000 after buying an additional 429 shares during the period. Commonwealth of Pennsylvania Public School Empls Retrmt SYS raised its holdings in NexPoint Residential Trust by 3.8% in the 2nd quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 13,248 shares of the financial services provider's stock valued at $441,000 after buying an additional 488 shares during the period. Finally, Aberdeen Group plc raised its holdings in NexPoint Residential Trust by 9.4% in the 2nd quarter. Aberdeen Group plc now owns 6,639 shares of the financial services provider's stock valued at $221,000 after buying an additional 571 shares during the period. Institutional investors and hedge funds own 76.61% of the company's stock.

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.