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.

NexPoint Residential Trust (NYSE:NXRT - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued to investors on Sunday.

Several other research analysts have also recently issued reports on NXRT. Citizens Jmp cut shares of NexPoint Residential Trust from an "outperform" rating to a "market perform" rating in a report on Monday, May 19th. JMP Securities restated a "market perform" rating on shares of NexPoint Residential Trust in a report on Monday, May 19th. Truist Financial lowered their target price on shares of NexPoint Residential Trust from $42.00 to $38.00 and set a "hold" rating for the company in a report on Thursday, May 29th. Raymond James Financial cut shares of NexPoint Residential Trust from an "outperform" rating to a "market perform" rating in a report on Thursday, May 15th. Finally, Compass Point restated a "neutral" rating and issued a $42.50 target price (down previously from $50.00) on shares of NexPoint Residential Trust in a report on Tuesday, May 13th. One investment analyst has rated the stock with a sell rating and seven have issued a hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $42.30.

NexPoint Residential Trust Trading Down 1.3%

Shares of NYSE:NXRT opened at $31.02 on Friday. NexPoint Residential Trust has a 52 week low of $29.98 and a 52 week high of $48.37. The company's 50 day moving average is $33.43 and its two-hundred day moving average is $36.33. The company has a current ratio of 1.89, a quick ratio of 1.89 and a debt-to-equity ratio of 4.22. The company has a market cap of $786.82 million, a PE ratio of -15.83, a P/E/G 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 EPS for the quarter, missing analysts' consensus estimates of $0.81 by ($0.01). NexPoint Residential Trust had a negative net margin of 19.55% and a negative return on equity of 12.54%. The firm had revenue of $63.10 million during the quarter, compared to analysts' expectations of $63.32 million. Equities analysts predict that NexPoint Residential Trust will post 2.86 earnings per share for the current fiscal year.

Insider Activity at NexPoint Residential Trust

In other news, insider Paul Richards purchased 5,000 shares of the stock in a transaction dated Wednesday, June 25th. The stock was acquired at an average cost of $32.92 per share, for a total transaction of $164,600.00. Following the completion of the acquisition, the insider directly owned 24,689 shares in the company, valued at $812,761.88. This represents a 25.39% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 15.36% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On NexPoint Residential Trust

A number of hedge funds and other institutional investors have recently modified their holdings of NXRT. JPMorgan Chase & Co. grew its holdings in shares of NexPoint Residential Trust by 27.3% during the fourth quarter. JPMorgan Chase & Co. now owns 149,020 shares of the financial services provider's stock worth $6,222,000 after buying an additional 31,930 shares in the last quarter. Envestnet Asset Management Inc. grew its holdings in NexPoint Residential Trust by 0.3% in the fourth quarter. Envestnet Asset Management Inc. now owns 141,120 shares of the financial services provider's stock valued at $5,892,000 after purchasing an additional 364 shares during the period. Russell Investments Group Ltd. grew its holdings in NexPoint Residential Trust by 14.7% in the fourth quarter. Russell Investments Group Ltd. now owns 198,678 shares of the financial services provider's stock valued at $8,295,000 after purchasing an additional 25,441 shares during the period. Invesco Ltd. grew its holdings in NexPoint Residential Trust by 4.2% in the fourth quarter. Invesco Ltd. now owns 201,540 shares of the financial services provider's stock valued at $8,414,000 after purchasing an additional 8,052 shares during the period. Finally, Raymond James Financial Inc. purchased a new stake in NexPoint Residential Trust in the fourth quarter valued at approximately $575,000. 76.61% of the stock is currently owned by hedge funds and other institutional investors.

NexPoint Residential Trust Company Profile

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.

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