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

Forestar Group Inc. (NYSE:FOR) gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. 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 for the quarter, missing analysts’ consensus estimates of $0.65 by ($0.33). Forestar Group had a return on equity of 13.59% and a net margin of 13.48%. The firm had revenue of $250.40 million for 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.

Analysts Set New Price Targets

Separately, Citigroup cut their price target on shares of 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 Inflows and Outflows

A number of institutional investors have recently modified their holdings of the company. Connor Clark & Lunn Investment Management Ltd. raised its stake in shares of Forestar Group by 4.6% in the third quarter. Connor Clark & Lunn Investment Management Ltd. now owns 8,831 shares of the oil and gas exploration company’s stock valued at $286,000 after acquiring an additional 392 shares during the last quarter. Carolina Wealth Advisors LLC increased its holdings in shares of Forestar Group by 2.3% in the fourth quarter. Carolina Wealth Advisors LLC now owns 20,589 shares of the oil and gas exploration company’s stock valued at $534,000 after purchasing an additional 454 shares in the last quarter. The Manufacturers Life Insurance Company increased its holdings in shares of Forestar Group by 7.5% in the second quarter. The Manufacturers Life Insurance Company now owns 10,920 shares of the oil and gas exploration company’s stock valued at $349,000 after purchasing an additional 765 shares in the last quarter. Point72 DIFC Ltd acquired a new stake in shares of Forestar Group in the third quarter valued at approximately $32,000. Finally, nVerses Capital LLC increased 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 valued at $39,000 after purchasing an additional 1,000 shares in the last quarter. Institutional investors own 35.50% of the company’s stock.

Forestar Group Stock Down 0.4 %

The business’s fifty day simple moving average is $27.39 and its 200 day simple moving average is $29.97. The company has a current ratio of 1.61, a quick ratio of 1.61 and a debt-to-equity ratio of 0.44. The stock has a market cap of $1.22 billion, a price-to-earnings ratio of 6.03 and a beta of 1.74.

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.