NexPoint Residential Trust (NYSE:NXRT) Cut to “Sell” at Wall Street Zen

Wall Street Zen cut shares of NexPoint Residential Trust (NYSE:NXRT) from a hold rating to a sell rating in a research note published on Saturday,Wall Street Zen reports.

A number of other 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 Tuesday, October 13th. Weiss Ratings upgraded NexPoint Residential Trust from a “sell (d)” rating to a “sell (d+)” rating in a research note on Tuesday, October 27th. Citizens Jmp reaffirmed a “market perform” rating on shares of NexPoint Residential Trust in a research report on Thursday, August 20th. Deutsche Bank Aktiengesellschaft set a $23.00 price objective on NexPoint Residential Trust in a research report on Wednesday, September 9th. Finally, Truist Financial cut their target price on NexPoint Residential Trust from $26.00 to $18.00 and set a “hold” rating on the stock in a research note on Tuesday, September 29th. Three equities research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat, NexPoint Residential Trust has a consensus rating of “Reduce” and a consensus price target of $20.50.

NexPoint Residential Trust Stock Down 2.8%

Shares of NYSE:NXRT opened at $15.80 on Friday. NexPoint Residential Trust has a 1 year low of $15.72 and a 1 year high of $32.36. The business has a 50 day simple moving average of $19.90 and a two-hundred day simple moving average of $25.51. The firm has a market capitalization of $403.64 million, a PE ratio of -10.75, a price-to-earnings-growth ratio of 0.31 and a beta of 1.15. The company has a debt-to-equity ratio of 7.10, a current ratio of 1.69 and a quick ratio of 1.92.

NexPoint Residential Trust (NYSE:NXRT) last released its earnings results on Tuesday, November 3rd. The financial services provider reported ($0.45) EPS for the quarter, missing analysts’ consensus estimates of ($0.41) by ($0.04). The business had revenue of $64.47 million for the quarter, compared to the consensus estimate of $64.87 million. NexPoint Residential Trust had a negative net margin of 14.59% and a negative return on equity of 14.29%. On average, equities analysts predict that NexPoint Residential Trust will post 2.23 EPS for the current year.

NexPoint Residential Trust Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 31st. Stockholders of record on Tuesday, December 15th will be given a $0.53 dividend. The ex-dividend date of this dividend is Tuesday, December 15th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 13.4%. NexPoint Residential Trust’s dividend payout ratio (DPR) is presently -144.22%.

Insider Buying and Selling

In related news, Director Brian Mitts sold 15,000 shares of the company’s stock in a transaction dated Thursday, November 5th. The stock was sold at an average price of $17.07, for a total transaction of $256,050.00. Following the transaction, the director directly owned 45,289 shares of the company’s stock, valued at $773,083.23. This represents a 24.88% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, insider Paul Richards purchased 3,000 shares of the firm’s stock in a transaction on Thursday, November 5th. The stock was acquired at an average price of $16.78 per share, with a total value of $50,340.00. Following the completion of the purchase, the insider owned 35,103 shares of the company’s stock, valued at $589,028.34. The trade was a 9.34% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have acquired a total of 29,072 shares of company stock worth $503,368 in the last ninety days. 16.63% of the stock is owned by insiders.

Institutional Trading of NexPoint Residential Trust

A number of institutional investors have recently bought and sold shares of the stock. Russell Investments Group Ltd. raised its holdings in shares of NexPoint Residential Trust by 18.1% in the third quarter. Russell Investments Group Ltd. now owns 48,310 shares of the financial services provider’s stock worth $943,000 after buying an additional 7,421 shares during the last quarter. Alps Advisors Inc. lifted its stake in shares of NexPoint Residential Trust by 20.1% during the third quarter. Alps Advisors Inc. now owns 10,550 shares of the financial services provider’s stock worth $206,000 after buying an additional 1,765 shares during the period. VIRGINIA RETIREMENT SYSTEMS ET Al lifted its stake in shares of NexPoint Residential Trust by 10.3% during the third quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 40,800 shares of the financial services provider’s stock worth $796,000 after buying an additional 3,800 shares during the period. Signaturefd LLC grew its holdings in shares of NexPoint Residential Trust by 183.0% during the third quarter. Signaturefd LLC now owns 3,456 shares of the financial services provider’s stock valued at $67,000 after buying an additional 2,235 shares during the last quarter. Finally, Evergreen Capital Management LLC grew its holdings in shares of NexPoint Residential Trust by 52.2% during the third quarter. Evergreen Capital Management LLC now owns 13,837 shares of the financial services provider’s stock valued at $270,000 after buying an additional 4,744 shares during the last quarter. 76.61% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting NexPoint Residential Trust

Here are the key news stories impacting NexPoint Residential Trust this week:

• Positive Sentiment: Insiders Paul Richards and Matt McGraner reported buying a combined 18,292 shares for about $302,319 across transactions from Nov. 5–9. The purchases increased their respective holdings and may signal confidence in NXRT’s prospects. SEC filing for Richards’ purchases SEC filing for McGraner’s purchases
• Negative Sentiment: Director Brian Mitts sold 15,000 shares for about $256,050, reducing his stake by nearly 25%. The sale could weigh on sentiment, although the insider buying was larger in aggregate. SEC filing for Mitts’ sale
• Negative Sentiment: Recent quarterly results missed expectations: NXRT reported EPS of ($0.45) versus consensus of ($0.41), while revenue also came in slightly below estimates. The stock is trading near its 52-week low, reinforcing the pressure on shares.

About NexPoint Residential Trust

NexPoint Residential Trust, Inc (NYSE: NXRT) is a publicly traded real estate investment trust focused on acquiring, owning, operating and selectively renovating multifamily apartment communities. The company generally targets value-add properties, seeking to improve their operating performance and resident appeal through renovations, property management initiatives and other capital improvements.

NexPoint Residential Trust’s portfolio is concentrated primarily in the Southeastern and Southwestern United States.