Brian Mitts, the Chief Financial Officer, Executive VP-Finance, Secretary, and Treasurer of NexPoint Residential Trust, Inc. (NYSE:NXRT), has sold 2,000 shares of common stock at an average price of $39.40, totaling $78,801.20. This transaction was recorded on June 28, 2024, as per the latest SEC filings.
The sale has adjusted Mitts' direct holdings to 65,696 shares of NexPoint Residential Trust, Inc. after correcting a clerical error that had transposed a number in the previous report. Additionally, he maintains indirect ownership of 18,187.20 shares through a 401(k) Plan.
Investors often monitor insider transactions as they can provide insights into the executive's view of the company's valuation and prospects. While the reasons behind executives' decisions to sell shares can vary, these transactions are mandatory to be reported to the Securities and Exchange Commission and made public to ensure transparency.
NexPoint Residential Trust, Inc., based out of Dallas, Texas, operates within the real estate sector, specifically focusing on real estate investment trusts. The company's stock trades on the New York Stock Exchange under the ticker symbol NXRT.
The reported transaction follows the standard regulatory process for insider trades. Shareholders and potential investors can access these details through the SEC's database to stay informed about significant insider trading activities.
In other recent news, NexPoint Residential Trust has been under the scrutiny of Truist Securities, which revised the real estate investment trust's price target from $35.00 to $34.00, maintaining a Hold rating. Truist Securities' analyst expects a decline in NexPoint's earnings in the long term, citing inefficiencies in converting Net Operating Income into cash flow due to high financial leverage and administrative expenses. The upcoming maturity of $1.2 billion worth of interest rate swaps through the third quarter of 2026, which could potentially increase the company's interest expenses, was also a concern.
In contrast, NexPoint Residential Trust reported a significant turnaround in its Q1 2024 results, with a net income of $26.3 million, a stark contrast to the net loss reported in the previous year. The company also completed property upgrades and initiated a share buyback program of up to $25 million. Despite a slight decrease in same-store rent, the company saw an increase in occupancy and maintained its 2024 guidance.
These are among the recent developments for NexPoint Residential Trust, which is focusing on share buybacks due to the valuation gap between public and private markets. The company's Sunbelt portfolio is expected to benefit from in-migration and demographic trends, with modest growth expected in the second half of the year. Despite these positives, the company acknowledges a decrease in transaction volume in the market, which is currently at its lowest in the last decade.
InvestingPro Insights
NexPoint Residential Trust, Inc. (NYSE:NXRT) has been a subject of interest for investors, especially following insider transactions such as the recent sale by CFO Brian Mitts. To provide a deeper understanding of the company's financial health and market performance, let's look at some key InvestingPro Data and InvestingPro Tips that could inform investment decisions.
From a valuation standpoint, NXRT's P/E Ratio stands at 13.72, indicating a potentially attractive valuation compared to industry peers. Additionally, the company boasts a high Gross Profit Margin of 60.17% for the last twelve months as of Q1 2024, suggesting efficient operations and strong pricing power. Shareholders may also find comfort in the company’s dividend history, as NXRT has raised its dividend for 9 consecutive years, reflecting a commitment to returning value to shareholders.
On the performance front, NXRT has demonstrated a solid return over the last three months, with a 30.4% price total return, highlighting the stock's recent positive momentum. This aligns with one of the InvestingPro Tips, which notes that the company has seen a strong return over the last three months. Furthermore, another InvestingPro Tip highlights that NXRT has been profitable over the last twelve months, which is corroborated by a Basic EPS (Continuing Operations) of $2.90.
For investors seeking more in-depth analysis and additional insights, there are 10 additional InvestingPro Tips available at https://www.investing.com/pro/NXRT. These tips can provide further context on NXRT's shareholder yield, earnings multiple, and net income expectations. To access these valuable insights, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
The company's next earnings date is scheduled for July 23, 2024, which will be a key event for investors to assess NXRT's ongoing financial performance and strategic direction.
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