NREF Should I Buy
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Nexpoint Real Estate Finance Inc (NREF) is not a strong buy at this moment for a beginner investor with a long-term strategy. While the company has shown strong revenue and net income growth in the latest quarter, the EPS has dropped significantly, and there are no recent positive trading signals or news catalysts to support an immediate buy decision. The technical indicators are neutral, and the options data suggests a lack of significant trading sentiment. For a long-term investor, it may be better to monitor the stock for stronger entry signals or catalysts.
The MACD is above 0 and positively contracting, indicating a neutral to slightly bullish momentum. RSI is at 58.421, in the neutral zone, suggesting no clear overbought or oversold conditions. Moving averages are converging, and the stock is trading close to its pivot level of 13.952, with resistance at 14.17 and support at 13.735.
Gross margin also improved significantly to 74.95%, up 33.01% YoY.
EPS dropped by 50% YoY, indicating potential profitability challenges. No recent news or significant trading trends from hedge funds, insiders, or Congress. Analysts have lowered the price target from $15 to $14, reflecting cautious sentiment.
In Q4 2025, revenue increased to $55.425 million, up 59.22% YoY. Net income rose to $11.842 million, up 41.38% YoY. However, EPS dropped to $0.24, down 50% YoY, which raises concerns about earnings sustainability.
Piper Sandler lowered the price target from $15 to $14 while maintaining an Overweight rating. The firm notes that the mortgage sector has faced recent volatility, and mortgage applications have begun to stall after a strong start to the quarter.
