(NXRT) Nexpoint Residential Trust - Ratings and Ratios

NexPoint Residential Trust Inc (NYSE:NXRT) is a publicly traded real estate investment trust (REIT) specializing in the acquisition, ownership, and operation of middle-income multifamily properties with value-add potential. The company focuses on well-located assets in urban and suburban submarkets, primarily within the Southeastern and Southwestern United States. NXRT is externally advised by NexPoint Real Estate Advisors, L.P., an affiliate of NexPoint Advisors, L.P., an SEC-registered investment advisor with extensive experience in real estate investments. The companys strategy emphasizes properties that offer opportunities for operational improvements and capital enhancements to drive long-term value creation.

From a technical perspective, NXRT is currently trading at $37.28, above its 20-day simple moving average (SMA) of $36.12 but below its 50-day SMA of $38.07 and 200-day SMA of $41.21. This indicates short-term bullish momentum but a longer-term downtrend. The average true range (ATR) of 1.33 suggests moderate volatility. The stocks average 20-day volume is 134,781 shares, reflecting moderate liquidity.

On the fundamental side, NXRT has a market capitalization of $1.89 billion, with a price-to-earnings (P/E) ratio of 911.75 and a forward P/E of 88.50. The price-to-book (P/B) ratio stands at 2.27, while the price-to-sales (P/S) ratio is 7.27. The return on equity (RoE) is 0.27%, indicating lower profitability compared to peers. These metrics suggest a premium valuation, potentially driven by growth expectations or specific market conditions.

3-Month Forecast: Based on and , NXRT is expected to face resistance near its 50-day SMA ($38.07) and 200-day SMA ($41.21) if the price continues to rise. Conversely, support may emerge near its 20-day SMA ($36.12). The high P/E and forward P/E ratios suggest investor optimism about future earnings growth, but the low RoE and elevated P/S ratio indicate potential risks to valuation sustainability. Overall, the stock is likely to remain range-bound between $36 and $42, with technical and fundamental factors balancing out near-term price movements.