NexPoint Residential Trust (NYSE:NXRT) Downgraded to Strong Sell Rating by Zacks Research

Zacks Research lowered shares of NexPoint Residential Trust (NYSE:NXRT) from a hold rating to a strong sell rating in a report issued on Wednesday morning,Zacks.com reports.

NXRT has been the topic of several other research reports. Raymond James Financial reissued an “underperform” rating on shares of NexPoint Residential Trust in a research report on Friday, February 27th. Weiss Ratings raised shares of NexPoint Residential Trust from a “sell (d)” rating to a “sell (d+)” rating in a report on Monday. Truist Financial reduced their price objective on shares of NexPoint Residential Trust from $30.00 to $27.00 and set a “hold” rating for the company in a research note on Wednesday, March 11th. Wall Street Zen raised shares of NexPoint Residential Trust from a “strong sell” rating to a “sell” rating in a report on Saturday, May 2nd. Finally, Citigroup restated a “market perform” rating on shares of NexPoint Residential Trust in a research report on Tuesday, March 10th. Four investment analysts have rated the stock with a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, NexPoint Residential Trust has an average rating of “Reduce” and a consensus price target of $34.75.

NexPoint Residential Trust Stock Performance

Shares of NXRT opened at $29.85 on Wednesday. The business has a 50-day moving average of $26.46 and a 200 day moving average of $29.01. NexPoint Residential Trust has a fifty-two week low of $23.79 and a fifty-two week high of $38.30. The firm has a market cap of $760.91 million, a P/E ratio of -23.50 and a beta of 1.20. The company has a debt-to-equity ratio of 5.75, a quick ratio of 2.40 and a current ratio of 2.40.

NexPoint Residential Trust (NYSE:NXRT) last announced its quarterly earnings data on Tuesday, April 28th. The financial services provider reported ($0.27) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.37) by $0.10. The business had revenue of $63.54 million for the quarter, compared to analysts’ expectations of $63.20 million. NexPoint Residential Trust had a negative return on equity of 10.30% and a negative net margin of 12.67%.NexPoint Residential Trust has set its FY 2026 guidance at 2.570-2.570 EPS. As a group, research analysts forecast that NexPoint Residential Trust will post 2.2 EPS for the current year.

NexPoint Residential Trust Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th will be issued a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a dividend yield of 7.1%. The ex-dividend date of this dividend is Monday, June 15th. NexPoint Residential Trust’s dividend payout ratio is presently -166.93%.

Insider Buying and Selling

In other news, insider Paul Richards bought 2,000 shares of the stock in a transaction on Monday, March 9th. The shares were acquired at an average cost of $26.34 per share, for a total transaction of $52,680.00. Following the purchase, the insider directly 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Matt Mcgraner purchased 2,000 shares of the business’s stock in a transaction on Friday, March 20th. The stock was purchased at an average cost of $24.37 per share, with a total value of $48,740.00. Following the completion of the acquisition, the insider owned 331,334 shares in the company, valued at approximately $8,074,609.58. This trade represents a 0.61% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders bought 8,700 shares of company stock valued at $223,777 over the last 90 days. 16.63% of the stock is owned by company insiders.

Institutional Investors Weigh In On NexPoint Residential Trust

Institutional investors and hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. grew its position in NexPoint Residential Trust by 3.0% during the fourth quarter. Vanguard Group Inc. now owns 2,436,034 shares of the financial services provider’s stock worth $73,325,000 after buying an additional 70,310 shares in the last quarter. State Street Corp increased its stake in NexPoint Residential Trust by 1.0% in the 4th quarter. State Street Corp now owns 1,298,438 shares of the financial services provider’s stock worth $39,083,000 after acquiring an additional 12,424 shares during the last quarter. Starwood Capital Group Management L.L.C. raised its holdings in shares of NexPoint Residential Trust by 19.1% in the 4th quarter. Starwood Capital Group Management L.L.C. now owns 989,419 shares of the financial services provider’s stock valued at $29,782,000 after acquiring an additional 158,750 shares in the last quarter. Long Pond Capital LP raised its holdings in shares of NexPoint Residential Trust by 54.9% in the 4th quarter. Long Pond Capital LP now owns 842,870 shares of the financial services provider’s stock valued at $25,370,000 after acquiring an additional 298,781 shares in the last quarter. Finally, Goldman Sachs Group Inc. boosted its position in shares of NexPoint Residential Trust by 49.1% during the 4th quarter. Goldman Sachs Group Inc. now owns 827,052 shares of the financial services provider’s stock valued at $24,894,000 after acquiring an additional 272,391 shares during the last quarter. Hedge funds and other institutional investors own 76.61% of the company’s stock.

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.