Forestar Group Inc (NYSE:FOR) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts give Forestar Group (NYSE:FOR) an average recommendation of Moderate Buy from six brokerages (2 hold, 3 buy, 1 strong buy), with an average 12‑month price target of $31.75; Citigroup raised its target to $38 and Zacks upgraded to strong‑buy.
• Forestar beat the latest quarter estimates with EPS of $0.30 versus $0.21 consensus and revenue of $273.0M versus $265.5M, marking a 9% year‑over‑year revenue increase.
• The shares trade with a market cap of $1.24B and a low valuation (PE 7.44), a 52‑week range of $18.00–$30.74, and about 35.5% ownership by institutional investors.

Forestar Group Inc (NYSE:FOR - Get Free Report) has been given an average recommendation of "Moderate Buy" by the six brokerages that are presently covering the firm, MarketBeat.com reports. Two investment analysts have rated the stock with a hold recommendation, three have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average twelve-month price objective among brokers that have covered the stock in the last year is $31.75.

Several brokerages have recently commented on FOR. Citigroup upped their price target on Forestar Group from $36.00 to $38.00 and gave the company a "buy" rating in a research note on Wednesday, January 28th. Wall Street Zen lowered shares of Forestar Group from a "buy" rating to a "hold" rating in a report on Friday, January 23rd. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Forestar Group in a research report on Thursday, January 22nd. Finally, Zacks Research raised shares of Forestar Group from a "hold" rating to a "strong-buy" rating in a research note on Thursday, January 29th.

Forestar Group Price Performance

NYSE FOR opened at $24.33 on Friday. The company has a market cap of $1.24 billion, a PE ratio of 7.44 and a beta of 1.42. The company has a debt-to-equity ratio of 0.44, a quick ratio of 0.71 and a current ratio of 0.71. The firm's 50 day moving average price is $27.30 and its 200-day moving average price is $26.33. Forestar Group has a 52-week low of $18.00 and a 52-week high of $30.74.

Forestar Group (NYSE:FOR - Get Free Report) last issued its quarterly earnings data on Tuesday, January 20th. The oil and gas exploration company reported $0.30 earnings per share for the quarter, topping the consensus estimate of $0.21 by $0.09. The company had revenue of $273.00 million during the quarter, compared to analyst estimates of $265.48 million. Forestar Group had a return on equity of 9.76% and a net margin of 9.90%.The firm's revenue for the quarter was up 9.0% compared to the same quarter last year. During the same period in the prior year, the business posted $0.32 earnings per share. Sell-side analysts forecast that Forestar Group will post 3.44 EPS for the current fiscal year.

Hedge Funds Weigh In On Forestar Group

A number of hedge funds have recently made changes to their positions in the stock. Caitong International Asset Management Co. Ltd increased its holdings in Forestar Group by 1,206.6% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 993 shares of the oil and gas exploration company's stock valued at $26,000 after purchasing an additional 917 shares during the last quarter. Kestra Advisory Services LLC acquired a new position in Forestar Group during the fourth quarter worth $27,000. Comerica Bank lifted its stake in Forestar Group by 76.5% during the third quarter. Comerica Bank now owns 1,269 shares of the oil and gas exploration company's stock worth $34,000 after purchasing an additional 550 shares in the last quarter. Allworth Financial LP boosted its position in shares of Forestar Group by 3,273.8% during the second quarter. Allworth Financial LP now owns 1,417 shares of the oil and gas exploration company's stock worth $28,000 after buying an additional 1,375 shares during the period. Finally, Tower Research Capital LLC TRC boosted its position in shares of Forestar Group by 201.1% during the second quarter. Tower Research Capital LLC TRC now owns 2,105 shares of the oil and gas exploration company's stock worth $42,000 after buying an additional 1,406 shares during the period. Hedge funds and other institutional investors own 35.50% of the company's stock.

Forestar Group Company Profile

Forestar Group Inc, headquartered in Austin, Texas, is a residential lot development and management company focused on delivering finished home sites to homebuilders across the United States. The company acquires, entitles and develops land for single-family and multi-family housing, managing zoning, infrastructure and environmental approvals to prepare lots for construction. Forestar's integrated approach to land development spans from initial site acquisition through final lot delivery, providing homebuilders with ready-to-build parcels in a variety of markets.

In addition to lot development, Forestar operates a retail homebuilding segment through joint ventures and strategic partnerships with national and regional homebuilders.

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