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

Key Points

• Zacks Research downgraded NexPoint Residential Trust (NYSE:NXRT) from "hold" to strong sell, and the stock's consensus rating is "Reduce" with an average target price of $34.75 amid several recent hold/sell/underperform calls.
• The company posted Q1 EPS of -$0.27 (beating estimates of -$0.37) but remains unprofitable with a negative P/E (-23.5), negative ROE/net margin, and shares trading around $29 with a 1‑year range of $23.79–$38.30.
• Insiders bought shares recently (8,700 shares worth $223,777 last quarter) and now own 16.63% of the company, while institutional investors hold roughly 76.61% of the stock.

NexPoint Residential Trust (NYSE:NXRT - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Wednesday,Zacks.com reports.

Several other brokerages also recently commented on NXRT. Wall Street Zen upgraded NexPoint Residential Trust from a "strong sell" rating to a "sell" rating in a research note on Saturday, May 2nd. Weiss Ratings upgraded NexPoint Residential Trust from a "sell (d)" rating to a "sell (d+)" rating in a research note on Monday. Raymond James Financial restated an "underperform" rating on shares of NexPoint Residential Trust in a research note on Friday, February 27th. Truist Financial reduced their target price on NexPoint Residential Trust from $30.00 to $27.00 and set a "hold" rating for the company in a research note on Wednesday, March 11th. Finally, Citigroup restated a "market perform" rating on shares of NexPoint Residential Trust in a research note on Tuesday, March 10th. Four equities research analysts have rated the stock with a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Reduce" and an average target price of $34.75.

NexPoint Residential Trust Stock Performance

Shares of NexPoint Residential Trust stock opened at $29.85 on Wednesday. The company has a current ratio of 2.40, a quick ratio of 2.40 and a debt-to-equity ratio of 5.75. The business has a 50-day moving average price of $26.46 and a two-hundred day moving average price of $29.01. NexPoint Residential Trust has a 1-year low of $23.79 and a 1-year high of $38.30. The company has a market cap of $760.91 million, a P/E ratio of -23.50 and a beta of 1.20.

NexPoint Residential Trust (NYSE:NXRT - Get Free Report) last issued its quarterly earnings results on Tuesday, April 28th. The financial services provider reported ($0.27) earnings per share for the quarter, topping analysts' consensus estimates of ($0.37) by $0.10. NexPoint Residential Trust had a negative return on equity of 10.30% and a negative net margin of 12.67%.The firm had revenue of $63.54 million during the quarter, compared to the consensus estimate of $63.20 million. NexPoint Residential Trust has set its FY 2026 guidance at 2.570-2.570 EPS. As a group, analysts anticipate that NexPoint Residential Trust will post 2.2 EPS for the current year.

Insider Transactions at NexPoint Residential Trust

In related news, insider Paul Richards purchased 2,000 shares of the business's stock in a transaction on Monday, March 9th. The stock was acquired at an average price of $26.34 per share, for a total transaction of $52,680.00. Following the purchase, the insider owned 28,186 shares of the company's stock, valued at approximately $742,419.24. This trade represents a 7.64% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Matt Mcgraner purchased 2,000 shares of the business's stock in a transaction on Friday, March 20th. The shares were bought at an average price of $24.37 per share, with a total value of $48,740.00. Following the purchase, the insider directly owned 331,334 shares in the company, valued at approximately $8,074,609.58. The trade was a 0.61% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have acquired a total of 8,700 shares of company stock valued at $223,777 in the last quarter. Company insiders own 16.63% of the company's stock.

Hedge Funds Weigh In On NexPoint Residential Trust

Hedge funds have recently added to or reduced their stakes in the stock. Smartleaf Asset Management LLC lifted its position in shares of NexPoint Residential Trust by 205.0% during the 3rd quarter. Smartleaf Asset Management LLC now owns 857 shares of the financial services provider's stock worth $27,000 after buying an additional 576 shares in the last quarter. Federation des caisses Desjardins du Quebec lifted its position in shares of NexPoint Residential Trust by 27.4% during the 4th quarter. Federation des caisses Desjardins du Quebec now owns 1,796 shares of the financial services provider's stock worth $54,000 after buying an additional 386 shares in the last quarter. Versant Capital Management Inc lifted its position in shares of NexPoint Residential Trust by 334.3% during the 3rd quarter. Versant Capital Management Inc now owns 1,937 shares of the financial services provider's stock worth $62,000 after buying an additional 1,491 shares in the last quarter. Tower Research Capital LLC TRC lifted its position in shares of NexPoint Residential Trust by 121.1% during the 2nd quarter. Tower Research Capital LLC TRC now owns 2,656 shares of the financial services provider's stock worth $88,000 after buying an additional 1,455 shares in the last quarter. Finally, IFM Investors Pty Ltd bought a new position in shares of NexPoint Residential Trust during the 1st quarter worth approximately $90,000. Institutional investors and hedge funds own 76.61% of the company's stock.

About NexPoint Residential Trust

NexPoint Residential Trust is a real estate investment trust focused on the acquisition, leasing and management of single‐family rental homes across the United States. The company targets suburban and Sun Belt markets with favorable demographic trends, seeking to build a diversified portfolio of standalone residences that serve the growing demand for quality rental housing. By concentrating on professionally managed homes rather than multi‐family apartments, NexPoint Residential Trust aims to offer tenants the benefits of privacy and space, while generating predictable rental income for investors.

The firm’s investment strategy combines direct acquisitions of built single‐family homes with selective joint ventures and partnerships to optimize scale and geographic diversification.

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