Forestar Group (NYSE:FOR) Announces Quarterly Earnings Results

Forestar Group (NYSE:FOR) posted its earnings results on Tuesday. The oil and gas exploration company reported $0.30 EPS for the quarter, topping the consensus estimate of $0.21 by $0.09, Zacks reports. The firm had revenue of $273.00 million for the quarter, compared to the consensus estimate of $265.48 million. Forestar Group had a net margin of 9.90% and a return on equity of 9.89%. The business’s quarterly revenue was up 9.0% on a year-over-year basis. During the same period in the prior year, the business posted $0.32 earnings per share.

Here are the key takeaways from Forestar Group’s conference call:

• Q1 revenue rose 9% to $273 million with 1,944 lots sold, book value per share up 10% to $35.10, and a contracted backlog providing visibility to roughly $2.2 billion of future revenue.
• Net income declined to $15.4 million ($0.30/share) and gross margin compressed to 20.1% (22% a year ago), partly due to an unusually low?margin tract sale; management expects margins toward the lower end of its historical ~21%–23% range.
• Forestar ended the quarter with strong liquidity (~$820 million including $212 million cash and $608 million revolver capacity), modest leverage (total debt $793 million, net debt to capital 24.6%), and no senior note maturities in the next 12 months.
• The company invested $415 million in Q1 (~75% land development), plans to invest about $1.4 billion in fiscal 2026 (subject to market), and holds ~101,000 total lots (65% owned) with 24,100 owned lots under contract secured by $210 million of deposits.
• D.R. Horton is a major customer (large share of its starts on Forestar lots and a stated goal of 1 in 3 homes on Forestar lots), while Forestar remains focused on entry?level inventory amid affordability headwinds and is maintaining FY26 guidance of $1.6–$1.7 billion revenue and 14,000–15,000 lot deliveries.

Forestar Group Stock Performance

Forestar Group stock opened at $25.72 on Thursday. The stock has a 50-day simple moving average of $25.51 and a 200 day simple moving average of $25.74. The stock has a market capitalization of $1.31 billion, a price-to-earnings ratio of 7.87 and a beta of 1.42. The company has a quick ratio of 1.33, a current ratio of 1.33 and a debt-to-equity ratio of 0.45. Forestar Group has a 12-month low of $18.00 and a 12-month high of $29.44.

Analysts Set New Price Targets

Several research analysts have commented on FOR shares. Citizens Jmp lifted their price target on Forestar Group from $30.00 to $35.00 and gave the stock a “market outperform” rating in a research report on Wednesday, October 29th. Citigroup raised their price objective on shares of Forestar Group from $33.00 to $36.00 and gave the stock a “buy” rating in a research note on Thursday, October 30th. JMP Securities set a $35.00 target price on shares of Forestar Group in a research note on Wednesday, October 29th. Wall Street Zen raised shares of Forestar Group from a “hold” rating to a “buy” rating in a report on Friday, November 28th. Finally, JPMorgan Chase & Co. boosted their price objective on shares of Forestar Group from $23.00 to $25.00 and gave the stock a “neutral” rating in a report on Tuesday, November 4th. Four analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $32.00.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. AQR Capital Management LLC increased its stake in shares of Forestar Group by 32.1% in the 1st quarter. AQR Capital Management LLC now owns 227,559 shares of the oil and gas exploration company’s stock valued at $4,811,000 after buying an additional 55,266 shares during the period. Millennium Management LLC increased its position in Forestar Group by 50.8% in the first quarter. Millennium Management LLC now owns 489,230 shares of the oil and gas exploration company’s stock worth $10,342,000 after purchasing an additional 164,753 shares during the period. NewEdge Advisors LLC raised its holdings in Forestar Group by 63.7% during the 1st quarter. NewEdge Advisors LLC now owns 4,829 shares of the oil and gas exploration company’s stock worth $102,000 after purchasing an additional 1,879 shares during the last quarter. Jane Street Group LLC bought a new stake in Forestar Group during the 1st quarter worth about $850,000. Finally, Strs Ohio acquired a new position in Forestar Group during the 1st quarter valued at about $74,000. Institutional investors and hedge funds own 35.50% of the company’s stock.

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.