Wall Street Zen Upgrades NexPoint Residential Trust (NYSE:NXRT) to Hold

Key Points

• Wall Street Zen upgraded NexPoint Residential Trust from “sell” to “hold,” while the broader analyst view remains cautious with a consensus rating of “strong sell” and a $27.00 price target.
• The company beat quarterly EPS expectations, reporting a loss of $0.27 per share versus the expected $0.37 loss, and revenue came in slightly above estimates at $63.54 million.
• There has been recent insider and institutional buying, including purchases by two insiders and major holdings increases from firms such as Vanguard, though insiders and institutions already own sizable stakes in the stock.

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

Several other equities research analysts also recently issued reports on NXRT. Zacks Research downgraded NexPoint Residential Trust from a "hold" rating to a "strong sell" rating in a report on Wednesday, May 6th. Citigroup reiterated a "market perform" rating on shares of NexPoint Residential Trust in a report on Tuesday, March 10th. Raymond James Financial reiterated an "underperform" rating on shares of NexPoint Residential Trust in a report on Friday, February 27th. Truist Financial cut their price objective on NexPoint Residential Trust from $30.00 to $27.00 and set a "hold" rating on the stock in a report on Wednesday, March 11th. Finally, Weiss Ratings upgraded NexPoint Residential Trust from a "sell (d)" rating to a "sell (d+)" rating in a report on Monday, May 4th. Two research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Strong Sell" and a consensus price target of $27.00.

NexPoint Residential Trust Stock Performance

Shares of NexPoint Residential Trust stock opened at $29.75 on Friday. NexPoint Residential Trust has a one year low of $23.79 and a one year high of $35.22. The company has a debt-to-equity ratio of 5.75, a quick ratio of 2.40 and a current ratio of 2.40. The company has a market cap of $758.20 million, a price-to-earnings ratio of -23.42 and a beta of 1.20. The business's 50 day moving average price is $26.78 and its 200 day moving average price is $28.89.

NexPoint Residential Trust (NYSE:NXRT - Get Free Report) last posted its earnings results on Tuesday, April 28th. The financial services provider reported ($0.27) EPS for the quarter, beating analysts' consensus estimates of ($0.37) by $0.10. NexPoint Residential Trust had a negative return on equity of 10.30% and a negative net margin of 12.67%.The company had revenue of $63.54 million for the quarter, compared to the consensus estimate of $63.20 million. NexPoint Residential Trust has set its FY 2026 guidance at 2.570-2.570 EPS. On average, research analysts predict that NexPoint Residential Trust will post 2.2 EPS for the current year.

Insider Buying and Selling at NexPoint Residential Trust

In other NexPoint Residential Trust news, insider Matt Mcgraner acquired 2,000 shares of the stock in a transaction dated Friday, March 20th. The stock was acquired at an average cost of $24.37 per share, with a total value of $48,740.00. Following the transaction, the insider owned 331,334 shares in the company, valued at $8,074,609.58. The trade was a 0.61% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Paul Richards acquired 2,000 shares of the stock in a transaction dated Monday, March 9th. The shares were acquired at an average cost of $26.34 per share, with a total value of $52,680.00. Following the completion of the transaction, the insider owned 28,186 shares in the company, valued at approximately $742,419.24. This represents a 7.64% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have purchased a total of 8,700 shares of company stock valued at $223,777 over the last three months. 16.63% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the business. DigitalBridge Group Inc. acquired a new position in shares of NexPoint Residential Trust during the 3rd quarter worth about $7,443,000. Tudor Investment Corp ET AL boosted its position in shares of NexPoint Residential Trust by 63.0% during the 3rd quarter. Tudor Investment Corp ET AL now owns 129,137 shares of the financial services provider's stock worth $4,161,000 after acquiring an additional 49,902 shares in the last quarter. Strs Ohio boosted its position in shares of NexPoint Residential Trust by 202.8% during the 3rd quarter. Strs Ohio now owns 118,400 shares of the financial services provider's stock worth $3,815,000 after acquiring an additional 79,300 shares in the last quarter. CSM Advisors LLC boosted its position in shares of NexPoint Residential Trust by 13.6% during the 3rd quarter. CSM Advisors LLC now owns 168,423 shares of the financial services provider's stock worth $5,426,000 after acquiring an additional 20,227 shares in the last quarter. Finally, Vanguard Group Inc. boosted its position in shares of NexPoint Residential Trust by 3.0% during the 4th quarter. Vanguard Group Inc. now owns 2,436,034 shares of the financial services provider's stock worth $73,325,000 after acquiring an additional 70,310 shares in the last quarter. 76.61% of the stock is owned by institutional investors and hedge funds.

NexPoint Residential Trust Company Profile

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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