Forestar Group (NYSE:FOR) Trading Down 5.7% - Should You Sell?

Key Points

• Forestar Group shares fell 5.7% on Monday, trading as low as $28.25 after closing at $29.90, with volume below its daily average.
• Recent analyst actions have been mixed: BTIG and Zacks both issued or downgraded to Hold, and the overall consensus rating is also Hold with an average target price of $32.67.
• The company’s latest earnings missed EPS estimates, reporting $0.63 per share versus $0.72 expected, though revenue came in slightly above forecasts at $374.3 million and rose 6.6% year over year.

Forestar Group Inc (NYSE:FOR - Get Free Report)'s stock price fell 5.7% on Monday . The company traded as low as $28.25 and last traded at $28.2050. Approximately 91,518 shares were traded during trading, a decline of 40% from the average daily volume of 152,468 shares. The stock had previously closed at $29.90.

Wall Street Analysts Forecast Growth

FOR has been the topic of a number of recent research reports. BTIG Research initiated coverage on shares of Forestar Group in a research note on Monday, March 30th. They set a "hold" rating on the stock. Zacks Research cut shares of Forestar Group from a "strong-buy" rating to a "hold" rating in a report on Monday, March 30th. Finally, Weiss Ratings upgraded Forestar Group from a "hold (c)" rating to a "hold (c+)" rating in a research report on Wednesday. Two investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, Forestar Group presently has an average rating of "Hold" and an average target price of $32.67.

Forestar Group Stock Down 5.7%

The stock has a fifty day simple moving average of $28.70 and a two-hundred day simple moving average of $27.40. The firm has a market cap of $1.44 billion, a PE ratio of 8.63 and a beta of 1.39. The company has a current ratio of 1.36, a quick ratio of 1.36 and a debt-to-equity ratio of 0.44.

Forestar Group (NYSE:FOR - Get Free Report) last released its quarterly earnings data on Tuesday, April 21st. The oil and gas exploration company reported $0.63 EPS for the quarter, missing analysts' consensus estimates of $0.72 by ($0.09). The firm had revenue of $374.30 million during the quarter, compared to the consensus estimate of $372.56 million. Forestar Group had a net margin of 9.80% and a return on equity of 9.49%. Forestar Group's revenue was up 6.6% compared to the same quarter last year. During the same quarter last year, the business posted $0.62 earnings per share.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Ameriprise Financial Inc. raised its stake in Forestar Group by 232.9% in the second quarter. Ameriprise Financial Inc. now owns 529,863 shares of the oil and gas exploration company's stock valued at $10,597,000 after purchasing an additional 370,685 shares in the last quarter. Millennium Management LLC grew its stake in Forestar Group by 50.8% in the 1st quarter. Millennium Management LLC now owns 489,230 shares of the oil and gas exploration company's stock worth $10,342,000 after buying an additional 164,753 shares in the last quarter. Harel Insurance Investments & Financial Services Ltd. purchased a new stake in shares of Forestar Group during the 1st quarter valued at $3,845,000. Alliancebernstein L.P. raised its position in shares of Forestar Group by 235.3% during the 3rd quarter. Alliancebernstein L.P. now owns 159,053 shares of the oil and gas exploration company's stock valued at $4,229,000 after buying an additional 111,620 shares in the last quarter. Finally, Bank of America Corp DE lifted its holdings in shares of Forestar Group by 165.2% during the 3rd quarter. Bank of America Corp DE now owns 152,617 shares of the oil and gas exploration company's stock worth $4,058,000 after acquiring an additional 95,065 shares during the last quarter. 35.50% of the stock is owned by institutional investors.

About Forestar Group

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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