Beyond The Numbers: 4 Analysts Discuss NexPoint Residential Stock

Throughout the last three months, 4 analysts have evaluated NexPoint Residential NXRT, offering a diverse set of opinions from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts have recently evaluated NexPoint Residential and provided 12-month price targets. The average target is $42.88, accompanied by a high estimate of $44.00 and a low estimate of $42.00. Highlighting a 5.76% decrease, the current average has fallen from the previous average price target of $45.50.

Decoding Analyst Ratings: A Detailed Look

A clear picture of NexPoint Residential's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to NexPoint Residential. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of NexPoint Residential compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for NexPoint Residential's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of NexPoint Residential's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on NexPoint Residential analyst ratings.

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All You Need to Know About NexPoint Residential

NexPoint Residential Trust Inc is a real estate investment trust company. Its objectives are to maximize the cash flow and value of properties owned, acquire properties with cash flow growth potential, provide quarterly cash distributions, and achieve long-term capital appreciation for stockholders. The company seeks to achieve these objectives through targeted management and a capex value-add program. It focuses on acquiring multifamily properties in markets with attractive job growth and household formation fundamentals predominantly in the Southeastern and Southwestern United States. The company generates revenue from the rental of multifamily properties.

NexPoint Residential: Financial Performance Dissected

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Decline in Revenue: Over the 3M period, NexPoint Residential faced challenges, resulting in a decline of approximately -6.45% in revenue growth as of 31 March, 2025. This signifies a reduction in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Real Estate sector.

Net Margin: NexPoint Residential's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -10.91%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -1.75%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): NexPoint Residential's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -0.36%, the company may face hurdles in achieving optimal financial performance.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 3.86, caution is advised due to increased financial risk.

Analyst Ratings: What Are They?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.