NexPoint Residential Trust (NYSE:NXRT) Sets New 1-Year Low - Here's Why

Key Points

• NexPoint Residential Trust shares hit a new 52-week low, falling to $23.20 and trading below both their 50-day ($26.21) and 200-day ($27.14) moving averages.
• Analyst sentiment remains weak: four analysts rate NXRT “Hold” and two rate it “Sell,” producing an average “Reduce” rating and a $22 price target.
• The company reported quarterly results slightly ahead of expectations and declared a $0.53 quarterly dividend, equivalent to a 9.1% annualized yield, despite negative net margin and return on equity.

NexPoint Residential Trust, Inc. (NYSE:NXRT - Get Free Report) hit a new 52-week low during trading on Monday . The stock traded as low as $23.20 and last traded at $23.19, with a volume of 11604 shares trading hands. The stock had previously closed at $23.50.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on the stock. Truist Financial decreased their price objective on shares of NexPoint Residential Trust from $27.00 to $26.00 and set a "hold" rating on the stock in a report on Tuesday, June 30th. Deutsche Bank Aktiengesellschaft set a $18.00 price objective on NexPoint Residential Trust in a report on Monday, July 20th. Zacks Research downgraded shares of NexPoint Residential Trust from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 25th. Wall Street Zen upgraded NexPoint Residential Trust from a "sell" rating to a "hold" rating in a research report on Saturday, July 4th. Finally, Citizens Jmp restated a "market perform" rating on shares of NexPoint Residential Trust in a research report on Thursday, August 20th. Four investment analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Reduce" and an average target price of $22.00.

NexPoint Residential Trust Price Performance

The stock has a market capitalization of $598.48 million, a P/E ratio of -17.59 and a beta of 1.18. The business has a fifty day simple moving average of $26.21 and a 200-day simple moving average of $27.14. The company has a debt-to-equity ratio of 6.41, a quick ratio of 1.92 and a current ratio of 1.92.

NexPoint Residential Trust (NYSE:NXRT - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The financial services provider reported ($0.34) earnings per share for the quarter, beating the consensus estimate of ($0.37) by $0.03. The firm had revenue of $64.61 million for the quarter, compared to analyst estimates of $63.78 million. NexPoint Residential Trust had a negative net margin of 13.22% and a negative return on equity of 11.75%. NexPoint Residential Trust has set its FY 2026 guidance at 2.450-2.450 EPS. Sell-side analysts expect that NexPoint Residential Trust, Inc. will post 2.38 earnings per share for the current fiscal year.

NexPoint Residential Trust Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th will be issued a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a dividend yield of 9.1%. The ex-dividend date is Tuesday, September 15th. NexPoint Residential Trust's dividend payout ratio (DPR) is currently -159.40%.

Institutional Trading of NexPoint Residential Trust

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. BlackRock Inc. acquired a new stake in shares of NexPoint Residential Trust in the 2nd quarter worth about $118,748,000. Vanguard Group Inc. boosted its holdings in shares of NexPoint Residential Trust by 3.0% in the 4th quarter. Vanguard Group Inc. now owns 2,436,034 shares of the financial services provider's stock worth $73,325,000 after buying an additional 70,310 shares during the last quarter. State Street Corp boosted its stake in NexPoint Residential Trust by 1.0% in the fourth quarter. State Street Corp now owns 1,298,438 shares of the financial services provider's stock valued at $39,083,000 after acquiring an additional 12,424 shares during the last quarter. Starwood Capital Group Management L.L.C. lifted its stake in NexPoint Residential Trust by 19.1% in the fourth quarter. Starwood Capital Group Management L.L.C. now owns 989,419 shares of the financial services provider's stock valued at $29,782,000 after purchasing an additional 158,750 shares during the last quarter. Finally, Long Pond Capital LP lifted its position in shares of NexPoint Residential Trust by 54.9% during the 4th quarter. Long Pond Capital LP now owns 842,870 shares of the financial services provider's stock valued at $25,370,000 after buying an additional 298,781 shares during the last quarter. Institutional investors 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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