Nexpoint Residential: Truist Securities maintains Hold, PT down to $34 from $38.

Nexpoint Residential: Truist Securities maintains Hold, PT down to $34 from $38.

NexPoint Residential Trust (NYSE:NXRT), a publicly traded Real Estate Investment Trust (REIT) focused on acquiring, owning, and operating middle-income multifamily properties in large cities and suburban submarkets, has recently been under the spotlight due to a series of analyst downgrades and technical indicators suggesting a potential downward trend.

On August 10, Wall Street Zen downgraded NexPoint Residential Trust from a "hold" rating to a "sell" rating [1]. This downgrade was followed by several other analysts revising their ratings and target prices. Citizens JMP, JMP Securities, Truist Financial, Raymond James Financial, and Compass Point have all made changes to their ratings and target prices for NXRT [1]. Despite these downgrades, the consensus rating remains "hold" with a target price of $42.30 [1].

Technical indicators have also been signaling a potential downward trend. The 15-minute chart for NexPoint Residential has exhibited Bollinger Bands Narrowing and a KDJ Death Cross on August 11, 2025, at 14:00 [2]. Bollinger Bands Narrowing indicates a decrease in the magnitude of stock price fluctuations, suggesting a shift towards a downward momentum trend. The KDJ Death Cross, a technical indicator used in the Keltner Channels, suggests a potential reversal in the stock's price trend.

Further analysis of NexPoint Residential Trust's financials reveals a mixed picture. The company reported $0.80 EPS for the quarter, missing analysts' expectations by $0.01. The company also reported a negative net margin of 19.55% and a negative return on equity of 12.54% [1]. However, the company's revenue was in line with expectations at $63.10 million [1].

Insider activity and institutional investor holdings also provide some insights. Paul Richards, an insider, purchased 5,000 shares of the stock on June 25, 2025 [1]. JPMorgan Chase & Co., Envestnet Asset Management Inc., Russell Investments Group Ltd., Invesco Ltd., and Raymond James Financial Inc. have all increased their holdings in NexPoint Residential Trust in the fourth quarter [1].

In conclusion, NexPoint Residential Trust faces a challenging period ahead. The recent analyst downgrades and technical indicators suggest a potential downward trend in the stock's price. However, the company's financial performance and insider/institutional investor activity may provide some support. Investors should closely monitor the company's performance and the broader market conditions.

References:
[1] https://www.marketbeat.com/instant-alerts/wall-street-zen-downgrades-nexpoint-residential-trust-nysenxrt-to-sell-2025-08-10/
[2] https://www.ainvest.com/news/nexpoint-residential-15min-chart-shows-bollinger-bands-narrowing-kdj-death-cross-2508/