Forestar Group (NYSE:FOR) Shares Gap Down on Disappointing Earnings

Forestar Group Inc. (NYSE:FOR) shares gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $26.79, but opened at $25.00. Forestar Group shares last traded at $25.55, with a volume of 49,126 shares traded.

The oil and gas exploration company reported $0.32 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.65 by ($0.33). Forestar Group had a net margin of 13.48% and a return on equity of 13.59%. The company had revenue of $250.40 million during the quarter, compared to analyst estimates of $318,000 billion. Forestar Group’s revenue was down 18.1% compared to the same quarter last year.

Analyst Upgrades and Downgrades

Separately, Citigroup cut their target price on Forestar Group from $43.00 to $39.00 and set a “buy” rating for the company in a research note on Monday, January 6th.

Institutional Investors Weigh In On Forestar Group

Hedge funds and other institutional investors have recently made changes to their positions in the business. Point72 DIFC Ltd purchased a new position in shares of Forestar Group in the 3rd quarter valued at approximately $32,000. nVerses Capital LLC raised its holdings in shares of Forestar Group by 500.0% in the third quarter. nVerses Capital LLC now owns 1,200 shares of the oil and gas exploration company’s stock worth $39,000 after acquiring an additional 1,000 shares during the last quarter. SG Americas Securities LLC raised its holdings in shares of Forestar Group by 43.3% in the fourth quarter. SG Americas Securities LLC now owns 5,727 shares of the oil and gas exploration company’s stock worth $148,000 after acquiring an additional 1,731 shares during the last quarter. EverSource Wealth Advisors LLC increased its stake in Forestar Group by 474.8% in the second quarter. EverSource Wealth Advisors LLC now owns 5,311 shares of the oil and gas exploration company’s stock valued at $168,000 after purchasing an additional 4,387 shares during the last quarter. Finally, Point72 Asia Singapore Pte. Ltd. acquired a new position in Forestar Group in the third quarter valued at $172,000. Institutional investors and hedge funds own 35.50% of the company’s stock.

Forestar Group Price Performance

The company has a market capitalization of $1.23 billion, a price-to-earnings ratio of 6.07 and a beta of 1.74. The company has a quick ratio of 1.61, a current ratio of 1.61 and a debt-to-equity ratio of 0.44. The company has a 50 day simple moving average of $27.49 and a 200 day simple moving average of $30.01.

About Forestar Group

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.