NexPoint Residential Trust (NYSE:NXRT) Cut to “Strong Sell” at Zacks Research

Zacks Research cut shares of NexPoint Residential Trust (NYSE:NXRT) from a hold rating to a strong sell rating in a research report sent to investors on Thursday,Zacks.com reports.

A number of other research firms also recently issued reports on NXRT. Weiss Ratings restated a “sell (d)” rating on shares of NexPoint Residential Trust in a research note on Wednesday, October 8th. Truist Financial dropped their price objective on shares of NexPoint Residential Trust from $34.00 to $31.00 and set a “hold” rating on the stock in a report on Monday, November 17th. Finally, Wall Street Zen upgraded shares of NexPoint Residential Trust from a “sell” rating to a “hold” rating in a research report on Friday, October 3rd. Six equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Reduce” and a consensus price target of $40.13.

NexPoint Residential Trust Price Performance

Shares of NXRT opened at $31.58 on Thursday. The firm has a market cap of $800.79 million, a PE ratio of -16.45 and a beta of 1.09. The company has a current ratio of 1.49, a quick ratio of 1.49 and a debt-to-equity ratio of 4.55. The firm has a fifty day simple moving average of $31.45 and a two-hundred day simple moving average of $32.93. NexPoint Residential Trust has a 1-year low of $29.93 and a 1-year high of $48.31.

NexPoint Residential Trust (NYSE:NXRT) last released its quarterly earnings results on Tuesday, October 28th. The financial services provider reported $0.80 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.79 by $0.01. NexPoint Residential Trust had a negative return on equity of 13.32% and a negative net margin of 19.23%.The firm had revenue of $62.83 million for the quarter, compared to the consensus estimate of $63.04 million. NexPoint Residential Trust has set its FY 2025 guidance at 2.750-2.750 EPS. On average, equities analysts anticipate that NexPoint Residential Trust will post 2.86 EPS for the current year.

NexPoint Residential Trust Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, December 31st. Investors of record on Monday, December 15th will be issued a $0.53 dividend. The ex-dividend date of this dividend is Monday, December 15th. This represents a $2.12 annualized dividend and a yield of 6.7%. This is a positive change from NexPoint Residential Trust’s previous quarterly dividend of $0.51. NexPoint Residential Trust’s payout ratio is currently -106.25%.

Insider Buying and Selling

In other NexPoint Residential Trust news, Director Brian Mitts sold 5,000 shares of NexPoint Residential Trust stock in a transaction that occurred on Friday, October 31st. The shares were sold at an average price of $30.52, for a total transaction of $152,600.00. Following the transaction, the director owned 60,900 shares of the company’s stock, valued at $1,858,668. The trade was a 7.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 15.36% of the company’s stock.

Institutional Trading of NexPoint Residential Trust

Several institutional investors and hedge funds have recently modified their holdings of the company. Smartleaf Asset Management LLC boosted its holdings in NexPoint Residential Trust by 205.0% in the 3rd quarter. Smartleaf Asset Management LLC now owns 857 shares of the financial services provider’s stock worth $27,000 after buying an additional 576 shares during the period. Ameritas Advisory Services LLC purchased a new position in shares of NexPoint Residential Trust in the second quarter valued at about $47,000. New Age Alpha Advisors LLC bought a new position in shares of NexPoint Residential Trust in the first quarter worth about $53,000. Quantbot Technologies LP purchased a new stake in shares of NexPoint Residential Trust during the first quarter worth about $56,000. Finally, Versant Capital Management Inc grew its position in shares of NexPoint Residential Trust by 334.3% during the third quarter. Versant Capital Management Inc now owns 1,937 shares of the financial services provider’s stock worth $62,000 after purchasing an additional 1,491 shares in the last quarter. 76.61% of the stock is currently owned by institutional investors.

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.