NexPoint Residential Trust (NYSE:NXRT) Shares Up 6.4% Following Insider Buying Activity

Key Points

• NXRT shares rose 6.4% to about $19.81 after insider Matt McGraner purchased 5,500 shares for roughly $101,310; he also bought 5,280 shares several days earlier.
• Analyst sentiment remains cautious, with four “hold” and two “sell” ratings, producing a consensus rating of “Reduce” and an average price target of $20.50.
• The REIT pays a quarterly dividend of $0.53, equivalent to a 10.7% annualized yield, but reported negative net margin and return on equity, alongside substantial debt relative to equity.

NexPoint Residential Trust, Inc. (NYSE:NXRT - Get Free Report) traded up 6.4% on Tuesday after an insider bought additional shares in the company. The company traded as high as $19.72 and last traded at $19.8050. 223,072 shares traded hands during mid-day trading, a decline of 30% from the average daily volume of 316,930 shares. The stock had previously closed at $18.61.

Specifically, insider Matt Mcgraner bought 5,500 shares of the business's stock in a transaction that occurred on Monday, October 5th. The stock was bought at an average cost of $18.42 per share, with a total value of $101,310.00. Following the completion of the purchase, the insider owned 361,605 shares of the company's stock, valued at approximately $6,660,764.10. The trade was a 1.54% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Matt Mcgraner acquired 5,280 shares of the business's stock in a transaction dated Thursday, October 1st. The shares were purchased at an average price of $18.89 per share, with a total value of $99,739.20. Following the transaction, the insider owned 356,105 shares of the company's stock, valued at approximately $6,726,823.45. This represents a 1.51% increase in their ownership of the stock. The SEC filing for this purchase provides additional information.

Analyst Upgrades and Downgrades

NXRT has been the topic of a number of recent research reports. Zacks Research cut shares of NexPoint Residential Trust from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, August 25th. Deutsche Bank Aktiengesellschaft set a $23.00 price objective on NexPoint Residential Trust in a research report on Wednesday, September 9th. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of NexPoint Residential Trust in a research note on Friday, July 31st. Truist Financial lowered their price target on NexPoint Residential Trust from $26.00 to $18.00 and set a "hold" rating for the company in a research report on Tuesday, September 29th. Finally, Citigroup reiterated a "market perform" rating on shares of NexPoint Residential Trust in a research report on Thursday, August 20th. Four research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, NexPoint Residential Trust has an average rating of "Reduce" and a consensus price target of $20.50.

NexPoint Residential Trust Trading Up 6.4%

The stock has a market capitalization of $506.02 million, a P/E ratio of -14.89, a P/E/G ratio of 0.48 and a beta of 1.18. The stock's 50 day moving average price is $23.18 and its 200-day moving average price is $25.89. The company has a quick ratio of 1.92, a current ratio of 1.92 and a debt-to-equity ratio of 6.41.

NexPoint Residential Trust (NYSE:NXRT - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The financial services provider reported ($0.34) earnings per share for the quarter, beating analysts' consensus estimates of ($0.37) by $0.03. The business had revenue of $64.61 million for the quarter, compared to analysts' expectations 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. As a group, equities research analysts expect that NexPoint Residential Trust, Inc. will post 2.24 earnings per share for the current year.

NexPoint Residential Trust Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th were paid a $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 10.7%. The ex-dividend date was Tuesday, September 15th. NexPoint Residential Trust's payout ratio is currently -159.40%.

Hedge Funds Weigh In On NexPoint Residential Trust

A number of large investors have recently bought and sold shares of the business. PNC Financial Services Group Inc. boosted its holdings in NexPoint Residential Trust by 29.9% in the 1st quarter. PNC Financial Services Group Inc. now owns 1,723 shares of the financial services provider's stock valued at $43,000 after purchasing an additional 397 shares during the period. Cetera Investment Advisers lifted its stake in shares of NexPoint Residential Trust by 5.6% in the first quarter. Cetera Investment Advisers now owns 9,378 shares of the financial services provider's stock valued at $234,000 after buying an additional 498 shares during the period. Allworth Financial LP lifted its stake in shares of NexPoint Residential Trust by 95.0% in the second quarter. Allworth Financial LP now owns 1,172 shares of the financial services provider's stock valued at $33,000 after buying an additional 571 shares during the period. Resona Asset Management Co. Ltd. grew its position in NexPoint Residential Trust by 6.5% during the first quarter. Resona Asset Management Co. Ltd. now owns 9,711 shares of the financial services provider's stock worth $242,000 after buying an additional 596 shares in the last quarter. Finally, Burford Brothers Inc. increased its stake in NexPoint Residential Trust by 2.9% during the second quarter. Burford Brothers Inc. now owns 24,559 shares of the financial services provider's stock valued at $686,000 after acquiring an additional 690 shares during the period. Institutional investors and hedge funds own 76.61% of the company's stock.

NexPoint Residential Trust Company Profile

NexPoint Residential Trust, Inc NYSE: NXRT is a real estate investment trust focused on acquiring, owning and operating multifamily apartment communities in the United States. The company primarily targets properties in the Southeastern and Southwestern regions, with an emphasis on markets that offer population growth, employment expansion and favorable housing demand.

NexPoint Residential Trust's portfolio generally consists of Class A and Class B apartment communities. Its business strategy includes renovating and repositioning properties to improve their appeal, operating performance and long-term value.

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