Forestar Group (NYSE:FOR) Shares Gap Up After Better-Than-Expected Earnings

Shares of Forestar Group Inc (NYSE:FOR) gapped up before the market opened on Tuesday following a better than expected earnings announcement. The stock had previously closed at $26.06, but opened at $29.00. Forestar Group shares last traded at $28.16, with a volume of 60,732 shares.

The oil and gas exploration company reported $1.70 EPS for the quarter, topping analysts’ consensus estimates of $1.17 by $0.53. Forestar Group had a return on equity of 10.02% and a net margin of 10.54%.The firm had revenue of $670.50 million for the quarter, compared to analysts’ expectations of $556.59 million. During the same period in the prior year, the firm posted $1.60 earnings per share. The company’s quarterly revenue was up 21.6% on a year-over-year basis. Forestar Group has set its FY 2026 guidance at EPS.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on FOR shares. JMP Securities set a $30.00 price objective on shares of Forestar Group and gave the company a “market outperform” rating in a research note on Tuesday, July 15th. Zacks Research upgraded shares of Forestar Group from a “strong sell” rating to a “hold” rating in a report on Friday, September 26th. Weiss Ratings restated a “hold (c)” rating on shares of Forestar Group in a report on Wednesday, October 8th. Citizens Jmp assumed coverage on Forestar Group in a research report on Tuesday, July 15th. They issued an “outperform” rating and a $30.00 price objective on the stock. Finally, Citigroup initiated coverage on Forestar Group in a research note on Tuesday, July 15th. They set an “outperform” rating on the stock. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $30.20.

Institutional Investors Weigh In On Forestar Group

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Allworth Financial LP raised its stake in Forestar Group by 3,273.8% during the 2nd quarter. Allworth Financial LP now owns 1,417 shares of the oil and gas exploration company’s stock valued at $28,000 after buying an additional 1,375 shares during the last quarter. Signaturefd LLC grew its holdings in shares of Forestar Group by 119.1% in the first quarter. Signaturefd LLC now owns 1,514 shares of the oil and gas exploration company’s stock worth $32,000 after acquiring an additional 823 shares during the period. Tower Research Capital LLC TRC increased its position in 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 valued at $42,000 after acquiring an additional 1,406 shares during the last quarter. State of Alaska Department of Revenue bought a new position in Forestar Group in the third quarter valued at about $72,000. Finally, Strs Ohio purchased a new position in Forestar Group in the first quarter worth about $74,000. Hedge funds and other institutional investors own 35.50% of the company’s stock.

Forestar Group Price Performance

The firm has a 50-day simple moving average of $26.82 and a 200-day simple moving average of $23.31. The firm has a market capitalization of $1.43 billion, a PE ratio of 8.80 and a beta of 1.44. The company has a debt-to-equity ratio of 0.52, a current ratio of 0.73 and a quick ratio of 0.73.

Forestar Group Company Profile

Forestar Group Inc operates as a residential lot development company in the United States. The company acquires land and develops infrastructure for single-family residential communities. It sells its residential single-family finished lots to local, regional, and national homebuilders. The company was incorporated in 2005 and is headquartered in Arlington, Texas.