Wall Street Zen Downgrades NexPoint Residential Trust (NYSE:NXRT) to Sell

Key Points

• Wall Street Zen has downgraded NexPoint Residential Trust (NYSE:NXRT) from a "hold" rating to a "sell" rating, indicating a bearish outlook on the stock.
• NexPoint Residential Trust reported a quarterly earnings miss with an EPS of $0.80, falling short of analysts' expectations of $0.81.
• The company's consensus rating remains "Hold" with a target price of $42.30, despite various mixed ratings from other research analysts.

Wall Street Zen downgraded shares of NexPoint Residential Trust (NYSE:NXRT - Free Report) from a hold rating to a sell rating in a research note issued to investors on Sunday.

NXRT has been the topic of a number of other research reports. Compass Point restated a "neutral" rating and issued a $42.50 price target (down previously from $50.00) on shares of NexPoint Residential Trust in a research report on Tuesday, May 13th. Citizens Jmp cut NexPoint Residential Trust from an "outperform" rating to a "market perform" rating in a research report on Monday, May 19th. Raymond James Financial lowered NexPoint Residential Trust from an "outperform" rating to a "market perform" rating in a research note on Thursday, May 15th. Truist Financial cut their price target on NexPoint Residential Trust from $42.00 to $38.00 and set a "hold" rating on the stock in a research note on Thursday, May 29th. Finally, JMP Securities reaffirmed a "market perform" rating on shares of NexPoint Residential Trust in a research note on Monday, May 19th. One investment analyst has rated the stock with a sell rating and seven have given a hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $41.50.

NexPoint Residential Trust Stock Performance

NXRT traded down $0.62 during trading on Friday, reaching $31.08. 28,586 shares of the company's stock were exchanged, compared to its average volume of 146,012. NexPoint Residential Trust has a fifty-two week low of $29.98 and a fifty-two week high of $48.37. The company has a quick ratio of 1.89, a current ratio of 1.89 and a debt-to-equity ratio of 4.22. The business has a 50 day moving average price of $33.27 and a 200 day moving average price of $36.20. The company has a market capitalization of $788.19 million, a P/E ratio of -15.86, a PEG ratio of 1.84 and a beta of 1.04.

NexPoint Residential Trust (NYSE:NXRT - Get Free Report) last announced its quarterly earnings data on Tuesday, July 29th. The financial services provider reported $0.80 earnings per share for the quarter, missing the consensus estimate of $0.81 by ($0.01). The firm had revenue of $63.10 million for the quarter, compared to the consensus estimate of $63.32 million. NexPoint Residential Trust had a negative return on equity of 12.54% and a negative net margin of 19.55%. As a group, analysts predict that NexPoint Residential Trust will post 2.86 earnings per share for the current fiscal year.

NexPoint Residential Trust Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Monday, September 15th will be given a $0.51 dividend. This represents a $2.04 dividend on an annualized basis and a dividend yield of 6.6%. The ex-dividend date is Monday, September 15th. NexPoint Residential Trust's payout ratio is currently -104.08%.

Insider Transactions at NexPoint Residential Trust

In other news, insider Paul Richards acquired 5,000 shares of the company's stock in a transaction that occurred on Wednesday, June 25th. The shares were bought at an average price of $32.92 per share, with a total value of $164,600.00. Following the completion of the purchase, the insider directly owned 24,689 shares in the company, valued at $812,761.88. This trade represents a 25.39% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 15.36% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On NexPoint Residential Trust

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of NexPoint Residential Trust by 2.1% during the 4th quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 12,708 shares of the financial services provider's stock valued at $531,000 after buying an additional 266 shares during the last quarter. Capital Square LLC raised its stake in shares of NexPoint Residential Trust by 2.9% during the 4th quarter. Capital Square LLC now owns 12,741 shares of the financial services provider's stock valued at $493,000 after buying an additional 356 shares during the last quarter. Envestnet Asset Management Inc. raised its stake in shares of NexPoint Residential Trust by 0.3% during the 4th quarter. Envestnet Asset Management Inc. now owns 141,120 shares of the financial services provider's stock valued at $5,892,000 after buying an additional 364 shares during the last quarter. Sterling Capital Management LLC increased its stake in shares of NexPoint Residential Trust by 2.0% in the 4th quarter. Sterling Capital Management LLC now owns 22,789 shares of the financial services provider's stock valued at $951,000 after purchasing an additional 439 shares in the last quarter. Finally, Commonwealth of Pennsylvania Public School Empls Retrmt SYS increased its stake in shares of NexPoint Residential Trust by 3.8% in the 2nd quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 13,248 shares of the financial services provider's stock valued at $441,000 after purchasing an additional 488 shares in the last quarter. Hedge funds and other institutional investors own 76.61% of the company's stock.

About NexPoint Residential Trust

NexPoint Residential Trust is a publicly traded REIT, with its shares listed on the New York Stock Exchange under the symbol "NXRT," primarily focused on acquiring, owning and operating well-located middle-income multifamily properties with "value-add" potential in large cities and suburban submarkets of large cities, primarily in the Southeastern and Southwestern United States.