NexPoint Residential Trust (NYSE:NXRT) Stock Price Up 5.6% Following Better-Than-Expected Earnings

Key Points

• Earnings beat drove the stock higher: NXRT reported Q1 EPS of $0.68 versus analysts' consensus of ($0.34), beating by $1.02, and the shares rose about 5.6% on the news (last at $27.84) despite below-average trading volume.
• Generous dividend but unusual payout metrics: The company paid a $0.53 quarterly dividend (annualized $2.12) for a ~7.6% yield, while its dividend payout ratio is shown as -166.93%, reflecting earnings distortions.
• Mixed outlook from management and analysts: NexPoint set FY2026 EPS guidance at about $2.57, but analysts overall rate the stock as "Reduce" with a consensus target of $34.75 and several recent hold/underperform/sell notes.

NexPoint Residential Trust, Inc. (NYSE:NXRT - Get Free Report) traded up 5.6% on Tuesday following a better than expected earnings announcement. The stock traded as high as $27.71 and last traded at $27.84. 60,045 shares traded hands during mid-day trading, a decline of 71% from the average session volume of 210,515 shares. The stock had previously closed at $26.36.

The financial services provider reported $0.68 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.34) by $1.02. NexPoint Residential Trust had a negative return on equity of 9.52% and a negative net margin of 12.74%.NexPoint Residential Trust has set its FY 2026 guidance at 2.570-2.570 EPS.

NexPoint Residential Trust Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Friday, March 13th were given a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a yield of 7.6%. The ex-dividend date was Friday, March 13th. NexPoint Residential Trust's dividend payout ratio (DPR) is -166.93%.

Analyst Ratings Changes

NXRT has been the subject of a number of analyst reports. Truist Financial cut their price objective on shares of NexPoint Residential Trust from $30.00 to $27.00 and set a "hold" rating for the company in a research report on Wednesday, March 11th. Raymond James Financial reissued an "underperform" rating on shares of NexPoint Residential Trust in a report on Friday, February 27th. Zacks Research upgraded shares of NexPoint Residential Trust from a "strong sell" rating to a "hold" rating in a research report on Friday, January 16th. Citigroup reaffirmed a "market perform" rating on shares of NexPoint Residential Trust in a report on Tuesday, March 10th. Finally, Weiss Ratings reiterated a "sell (d)" rating on shares of NexPoint Residential Trust in a research report on Tuesday, April 21st. Five investment analysts have rated the stock with a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Reduce" and a consensus target price of $34.75.

Insider Buying and Selling at NexPoint Residential Trust

In other news, insider Paul Richards acquired 2,000 shares of NexPoint Residential Trust stock in a transaction that occurred on Monday, March 9th. The stock was purchased at an average cost of $26.34 per share, with a total value of $52,680.00. Following the completion of the acquisition, the insider owned 28,186 shares in the company, valued at $742,419.24. This trade represents a 7.64% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Matt Mcgraner acquired 2,000 shares of NexPoint Residential Trust stock in a transaction that occurred on Friday, March 20th. The shares were purchased at an average cost of $24.37 per share, with a total value of $48,740.00. Following the completion of the acquisition, the insider owned 331,334 shares of the company's stock, valued at $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. Over the last ninety days, insiders have purchased 8,700 shares of company stock valued at $223,777. 16.63% of the stock is currently owned by insiders.

Hedge Funds Weigh In On NexPoint Residential Trust

Several hedge funds and other institutional investors have recently bought and sold shares of NXRT. Smartleaf Asset Management LLC raised its holdings in NexPoint Residential Trust by 205.0% during the third quarter. Smartleaf Asset Management LLC now owns 857 shares of the financial services provider's stock worth $27,000 after purchasing an additional 576 shares during the last quarter. Federation des caisses Desjardins du Quebec increased its position in NexPoint Residential Trust by 27.4% during the fourth 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 increased its position in NexPoint Residential Trust by 334.3% during the third 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 raised its holdings in shares of NexPoint Residential Trust by 121.1% in the second quarter. Tower Research Capital LLC TRC now owns 2,656 shares of the financial services provider's stock worth $88,000 after acquiring an additional 1,455 shares during the last quarter. Finally, IFM Investors Pty Ltd acquired a new position in shares of NexPoint Residential Trust in the first quarter worth $90,000. 76.61% of the stock is owned by institutional investors and hedge funds.

NexPoint Residential Trust Price Performance

The company has a debt-to-equity ratio of 5.27, a current ratio of 2.27 and a quick ratio of 2.27. The firm has a market capitalization of $711.86 million, a PE ratio of -22.06 and a beta of 1.18. The company has a 50-day moving average price of $26.53 and a 200-day moving average price of $29.09.

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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