NexPoint Residential Trust (NYSE:NXRT) Sets New 1-Year Low - Should You Sell?

Key Points

• NexPoint Residential Trust shares fell to a new 52-week low of $22.10, below both their 50-day and 200-day moving averages. Analysts’ consensus rating is “Reduce,” with an average price target of $24.50.
• The company reported quarterly revenue of $64.61 million and an adjusted loss of $0.34 per share, narrowly beating estimates, but continues to post negative margins and return on equity.
• NexPoint declared a quarterly dividend of $0.53 per share, equivalent to a 9.5% annualized yield; however, its payout ratio is negative because earnings remain below zero. Institutional investors own 76.61% of the stock.

NexPoint Residential Trust, Inc. (NYSE:NXRT - Get Free Report)'s share price hit a new 52-week low during trading on Tuesday . The stock traded as low as $22.10 and last traded at $22.1360, with a volume of 21879 shares changing hands. The stock had previously closed at $22.87.

Analyst Upgrades and Downgrades

Several analysts have weighed in on NXRT shares. Zacks Research downgraded shares of NexPoint Residential Trust from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 25th. Weiss Ratings reiterated a "sell (d+)" rating on shares of NexPoint Residential Trust in a research note on Friday, July 31st. Deutsche Bank Aktiengesellschaft set a $23.00 price objective on shares of NexPoint Residential Trust in a report on Wednesday, September 9th. Truist Financial cut their target price on NexPoint Residential Trust from $27.00 to $26.00 and set a "hold" rating on the stock in a research report on Tuesday, June 30th. Finally, Citizens Jmp restated a "market perform" rating on shares of NexPoint Residential Trust in a research note 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. Based on data from MarketBeat.com, the company currently has a consensus rating of "Reduce" and an average target price of $24.50.

NexPoint Residential Trust Stock Down 2.4%

The company has a current ratio of 1.92, a quick ratio of 1.92 and a debt-to-equity ratio of 6.41. The business's 50-day simple moving average is $25.18 and its 200-day simple moving average is $26.62. The company has a market capitalization of $570.25 million, a PE ratio of -16.79, a price-to-earnings-growth ratio of 0.59 and a beta of 1.15.

NexPoint Residential Trust (NYSE:NXRT - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The financial services provider reported ($0.34) EPS for the quarter, beating the consensus estimate of ($0.37) by $0.03. NexPoint Residential Trust had a negative net margin of 13.22% and a negative return on equity of 11.75%. The business had revenue of $64.61 million for the quarter, compared to the consensus estimate of $63.78 million. NexPoint Residential Trust has set its FY 2026 guidance at 2.450-2.450 EPS. As a group, equities research analysts anticipate that NexPoint Residential Trust, Inc. will post 2.25 EPS for the current fiscal year.

NexPoint Residential Trust Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th will be given a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a yield of 9.5%. The ex-dividend date of this dividend 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 have recently modified their holdings of the stock. BlackRock Inc. acquired a new position in shares of NexPoint Residential Trust in the second quarter worth about $118,748,000. California State Teachers Retirement System grew its holdings in NexPoint Residential Trust by 2,598.0% in the second quarter. California State Teachers Retirement System now owns 564,375 shares of the financial services provider's stock valued at $15,757,000 after purchasing an additional 543,457 shares during the period. ProShare Advisors LLC increased its position in shares of NexPoint Residential Trust by 11.2% in the fourth quarter. ProShare Advisors LLC now owns 204,074 shares of the financial services provider's stock valued at $6,143,000 after buying an additional 20,517 shares in the last quarter. Marnell Management LLC purchased a new stake in shares of NexPoint Residential Trust in the fourth quarter valued at approximately $5,220,000. Finally, Legal & General Group Plc raised its stake in shares of NexPoint Residential Trust by 5.2% during the 4th quarter. Legal & General Group Plc now owns 141,965 shares of the financial services provider's stock worth $4,273,000 after buying an additional 7,080 shares during the period. Hedge funds and other institutional investors own 76.61% of the company's stock.

NexPoint Residential Trust Company Profile

NexPoint Residential Trust, Inc is a real estate investment trust (REIT) that owns and operates multifamily apartment communities in the United States. The company focuses primarily on workforce housing and value-add properties, seeking to improve communities through renovations, property management initiatives and other capital improvements.

NexPoint Residential Trust's portfolio has historically been concentrated in the Sun Belt, including markets across the southeastern and southwestern United States.

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