Forestar Group Inc (FOR) - What Are Brokerages Thinking About This Stock?

Key Points

• Analysts hold a neutral view: Forestar Group has a consensus “Hold” rating from six research firms, with four Holds and two Buys. The average 12-month price target is $32.67, above the stock’s reported $23.85 opening price.
• Quarterly results missed expectations: EPS came in at $1.15 versus the $1.25 consensus, while revenue of $580.8 million fell short of $603.1 million and declined 13.4% year over year.
• Institutional ownership stands at 35.5%: Several major investors, including Bank of America and Bank of New York Mellon, recently established positions in Forestar, while CEO Anthony W. Oxley is set to become executive chairman following Donald J. Tomnitz’s retirement.

Forestar Group Inc (NYSE:FOR - Get Free Report) has received a consensus recommendation of "Hold" from the six research firms that are presently covering the firm, Marketbeat.com reports. Four equities research analysts have rated the stock with a hold rating and two have given a buy rating to the company. The average twelve-month price target among analysts that have updated their coverage on the stock in the last year is $32.67.

FOR has been the subject of several recent research reports. Citizens Jmp reiterated a "market outperform" rating and set a $35.00 target price on shares of Forestar Group in a research report on Wednesday, July 22nd. Weiss Ratings lowered Forestar Group from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday, October 23rd.

Forestar Group Trading Down 0.4%

Shares of NYSE:FOR opened at $23.85 on Monday. The stock has a market capitalization of $1.22 billion, a PE ratio of 8.58 and a beta of 1.43. The firm has a fifty day moving average price of $26.48 and a 200 day moving average price of $27.42. Forestar Group has a 1 year low of $22.81 and a 1 year high of $32.06. The company has a current ratio of 2.22, a quick ratio of 1.44 and a debt-to-equity ratio of 0.41.

Forestar Group (NYSE:FOR - Get Free Report) last posted its earnings results on Thursday, October 29th. The oil and gas exploration company reported $1.15 EPS for the quarter, missing analysts' consensus estimates of $1.25 by ($0.10). Forestar Group had a net margin of 8.72% and a return on equity of 7.73%. The firm had revenue of $580.80 million for the quarter, compared to analysts' expectations of $603.10 million. During the same period in the previous year, the company earned $1.70 EPS. The company's revenue was down 13.4% on a year-over-year basis.

Institutional Investors Weigh In On Forestar Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Public Employees Retirement System of Ohio purchased a new position in shares of Forestar Group during the 2nd quarter valued at approximately $723,000. Man Group plc purchased a new position in shares of Forestar Group during the 2nd quarter worth approximately $1,973,000. Bank of America Corp DE acquired a new position in Forestar Group in the second quarter worth about $4,196,000. Bank of New York Mellon Corp acquired a new position in Forestar Group in the second quarter valued at about $7,214,000. Finally, Ieq Capital LLC acquired a new position in Forestar Group in the second quarter valued at $680,000. Institutional investors and hedge funds own 35.50% of the company's stock.

Forestar Group News Summary

Here are the key news stories impacting Forestar Group this week:

• Neutral Sentiment: Forestar announced that long-serving Executive Chairman Donald J. Tomnitz will retire effective October 31, 2026. President and CEO Anthony W. Oxley will become executive chairman and chief executive officer on November 1, providing leadership continuity but ending Tomnitz’s nearly nine-year tenure. The company also announced related board changes. Forestar leadership transition announcement
• Negative Sentiment: Fiscal fourth-quarter earnings were below expectations: adjusted earnings per share of $1.15 missed the $1.25 consensus estimate. EPS also declined from $1.70 in the year-earlier quarter, highlighting weaker profitability. Forestar fourth-quarter income report
• Negative Sentiment: Revenue of $580.8 million fell short of the $603.1 million analyst forecast and decreased 13.4% year over year. Reports also pointed to a decline in tract sales, suggesting softer demand or reduced community-development activity and weighing on the near-term outlook. Forestar fourth-quarter tract sales report

Forestar Group Company Profile

Forestar Group Inc NYSE: FOR is a residential lot development company that acquires, entitles and develops land for housing construction. The company sells finished and partially developed residential lots to homebuilders, including its majority shareholder, D.R. Horton, as well as other national, regional and local builders.

Forestar's activities generally include identifying land opportunities, obtaining development approvals, installing infrastructure and managing the construction of roads, utilities and other improvements needed for residential communities.

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