Forestar Group stock hits 52-week low at $20.7 amid market challenges

Published 03/04/2025, 15:22
Forestar Group stock hits 52-week low at $20.7 amid market challenges

Forestar Group Inc (NYSE:FOR). shares tumbled to a 52-week low this week, with the stock price touching $20.7, reflecting a stark downturn in the company’s market valuation to $1.04 billion. According to InvestingPro analysis, the company maintains a "GOOD" overall financial health score despite the recent price weakness. This latest price level represents a significant drop from previous periods, underscoring the challenges the real estate developer has faced in a fluctuating economic environment. Over the past year, Forestar Group Inc. has seen its stock price erode by a substantial 46%, with a concerning 33% decline in just the past six months. Despite trading at attractive multiples with a P/E ratio of 6.8x, analysts maintain a bullish outlook with price targets ranging from $30 to $40. This decline has raised concerns among shareholders and market analysts alike, as they watch closely for signs of a turnaround or further indicators of market headwinds that could impact the company’s financial health. For deeper insights into Forestar’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 US stocks.

In other recent news, Forestar Group Inc. reported its first-quarter 2024 earnings, revealing a significant shortfall in both earnings per share (EPS) and revenue compared to analysts’ expectations. The company’s EPS was $0.32, missing the forecasted $0.70, while revenue came in at $250.4 million, below the projected $325.4 million. Despite these setbacks, Forestar plans to deliver up to 16,500 lots in fiscal 2025, maintaining its revenue guidance between $1.6 billion and $1.65 billion. Meanwhile, Citi analysts adjusted their stance on Forestar, reducing the price target to $32 from $39, though they maintained a Buy rating. They attributed the first-quarter miss to timing issues, as some volumes were advanced into the fourth quarter of 2024, and foresee margin pressures due to prolonged elevated interest rates. In corporate governance news, Forestar announced changes to its charter and elected new directors at its Annual Meeting of Stockholders. Additionally, Ernst & Young LLP was ratified as the company’s independent registered public accounting firm for the fiscal year ending September 30, 2025. These developments reflect Forestar’s ongoing efforts to navigate a challenging market environment and maintain investor confidence.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.