Forestar Group (NYSE:FOR) Hits New 1-Year Low - Here's Why

Key Points

• Forestar shares hit a 52-week low, trading as low as $22.77 and last at $22.685, below the prior close of $23.10.
• The company missed quarterly estimates, reporting EPS of $1.15 versus $1.25 expected and revenue of $580.8 million versus $603.1 million expected; revenue fell 13.4% year over year.
• Analysts’ consensus rating is Hold, with a consensus price target of $36.50; two analysts rate the stock Buy and three rate it Hold.

Forestar Group Inc (NYSE:FOR - Get Free Report) shares hit a new 52-week low on Wednesday. The company traded as low as $22.77 and last traded at $22.6850, with a volume of 21,863 shares. The stock had previously closed at $23.10.

Analyst Upgrades and Downgrades

Several research firms have issued reports on FOR. Citizens Jmp restated a "market outperform" rating and set a $35.00 price objective on shares of Forestar Group in a report on Wednesday, July 22nd. Weiss Ratings lowered shares of Forestar Group from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday, October 23rd. Two analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $36.50.

Forestar Group Price Performance

The company has a market cap of $1.17 billion, a PE ratio of 8.26 and a beta of 1.43. The stock has a fifty day moving average price of $25.82 and a 200-day moving average price of $27.33. The company has a debt-to-equity ratio of 0.41, a current ratio of 2.22 and a quick ratio of 1.44.

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

Insider Activity

In other news, Director Lisa Jamieson sold 3,000 shares of the stock in a transaction that occurred on Thursday, November 5th. The shares were sold at an average price of $24.77, for a total value of $74,310.00. Following the completion of the sale, the director directly owned 23,105 shares of the company's stock, valued at $572,310.85. This represents a 11.49% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.51% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. Fifth Third Bancorp purchased a new position in shares of Forestar Group during the 1st quarter valued at $31,000. Allworth Financial LP purchased a new stake in shares of Forestar Group during the second quarter worth $33,000. New York State Teachers Retirement System acquired a new stake in Forestar Group during the first quarter valued at $44,000. Versant Capital Management Inc boosted its position in Forestar Group by 74.0% during the second quarter. Versant Capital Management Inc now owns 2,727 shares of the oil and gas exploration company's stock valued at $86,000 after purchasing an additional 1,160 shares during the last quarter. Finally, Nisa Investment Advisors LLC grew its stake in Forestar Group by 85.1% in the third quarter. Nisa Investment Advisors LLC now owns 3,424 shares of the oil and gas exploration company's stock valued at $88,000 after purchasing an additional 1,574 shares in the last quarter. Institutional investors and hedge funds own 35.50% of the company's stock.

About Forestar Group

Forestar Group Inc. is a residential land development company that acquires and develops land into finished lots for sale to homebuilders. Its work can include planning communities and installing infrastructure such as roads and utilities. The company operates in markets across the United States, supplying lots to a range of homebuilders. D.R. Horton, one of the country's largest homebuilders, became Forestar's majority owner in 2017; Forestar continues to operate as a publicly traded company.

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