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

Key Points

• Wall Street Zen upgraded NexPoint Residential Trust (NYSE:NXRT) from "strong sell" to "sell," but the analyst consensus remains a "Reduce" with an average price target of $34.75 (five Hold ratings, two Sell ratings).
• The REIT beat Q1 EPS expectations (loss of $0.27 vs. -$0.37) and matched revenue estimates, yet still posts a negative net margin and return on equity and carries high leverage (debt/equity 5.75) with shares trading around $28.92.
• Insiders have been net buyers recently (two insiders bought 2,000 shares each), owning about 16.63% of the stock, while institutional investors control roughly 76.61% of shares.

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

Several other research analysts have also recently weighed in on the stock. Weiss Ratings reiterated a "sell (d)" rating on shares of NexPoint Residential Trust in a report on Tuesday, April 21st. 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 reduced their price target on shares of NexPoint Residential Trust from $30.00 to $27.00 and set a "hold" rating for the company in a report on Wednesday, March 11th. Finally, Zacks Research upgraded shares of NexPoint Residential Trust from a "strong sell" rating to a "hold" rating in a report on Friday, January 16th. Five equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Reduce" and an average price target of $34.75.

NexPoint Residential Trust Stock Up 0.1%

Shares of NYSE NXRT opened at $28.92 on Friday. The stock has a market cap of $737.17 million, a P/E ratio of -22.77 and a beta of 1.20. The firm has a 50 day moving average price of $26.44 and a 200 day moving average price of $29.07. The company has a debt-to-equity ratio of 5.75, a quick ratio of 2.27 and a current ratio of 2.40. NexPoint Residential Trust has a 52-week low of $23.79 and a 52-week high of $38.93.

NexPoint Residential Trust (NYSE:NXRT - Get Free Report) last released its quarterly earnings results on Tuesday, April 28th. The financial services provider reported ($0.27) earnings per share for the quarter, beating the consensus estimate of ($0.37) by $0.10. The company had revenue of $63.54 million during the quarter, compared to analysts' expectations of $63.20 million. NexPoint Residential Trust had a negative net margin of 12.67% and a negative return on equity of 10.30%. NexPoint Residential Trust has set its FY 2026 guidance at 2.570-2.570 EPS. Analysts expect 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 Paul Richards bought 2,000 shares of NexPoint Residential Trust stock in a transaction that occurred on Monday, March 9th. The stock was acquired at an average price of $26.34 per share, for a total transaction of $52,680.00. Following the completion of the acquisition, the insider owned 28,186 shares of the company's stock, valued at $742,419.24. This trade represents a 7.64% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, insider Matt Mcgraner bought 2,000 shares of NexPoint Residential Trust stock in a transaction that occurred on Friday, March 20th. The shares were acquired at an average price of $24.37 per share, with a total value of $48,740.00. Following the acquisition, the insider directly owned 331,334 shares of the company's stock, valued at $8,074,609.58. The trade was a 0.61% increase in their position. The SEC filing for this purchase provides additional information. Insiders have purchased 8,700 shares of company stock valued at $223,777 in the last 90 days. 16.63% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. DigitalBridge Group Inc. acquired a new position in NexPoint Residential Trust during the third quarter worth $7,443,000. Tudor Investment Corp ET AL boosted its holdings in NexPoint Residential Trust by 63.0% during the third quarter. Tudor Investment Corp ET AL now owns 129,137 shares of the financial services provider's stock worth $4,161,000 after purchasing an additional 49,902 shares during the last quarter. Strs Ohio raised its position in NexPoint Residential Trust by 202.8% during the third 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 raised its position in NexPoint Residential Trust by 13.6% during the third 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, Inceptionr LLC raised its position in NexPoint Residential Trust by 97.4% during the third quarter. Inceptionr LLC now owns 19,737 shares of the financial services provider's stock worth $636,000 after acquiring an additional 9,737 shares in the last quarter. Institutional investors and hedge funds own 76.61% of the company's stock.

About NexPoint Residential Trust

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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