Forestar Group Inc. (NYSE:FOR): An Opportunity for Fundamental Investors?

Forestar Group Inc. (NYSE:FOR) shares fell to a low of $14.4101 before closing at $14.59. Intraday shares traded counted 0.18 million, which was -35.65% lower than its 30-day average trading volume of 132.36K. FOR’s previous close was $14.80 while the outstanding shares total 48.03M. The firm has a beta of 2.15, a 12-month trailing P/E ratio of 14.35, and a growth ratio of 9.56. The stock’s Relative Strength Index (RSI) is 43.54, with weekly volatility at 3.93% and ATR at 0.72. The FOR stock’s 52-week price range has touched low of $9.43 and a $23.11 high. The stock traded lower over the last trading session, losing -1.42% on 06/26/20.

Investors have identified the Real Estate – Development company Forestar Group Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $710.97 million, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Forestar Group Inc. (FOR) Fundamentals that are to be considered.

FOR were able to record -124.0 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 55.4 million. In cash movements, the company had a total of -123.8 million as operating cash flow.

Potential earnings growth for Forestar Group Inc. (FOR)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Forestar Group Inc. recorded a total of 159.1 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 58.96% coming in sequential stages and their sales for the third quarter reducing by -55.37%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 147.2 million trying to sell their products during the last quarter, with the result yielding a gross income of 11.9 million. This allows shareholders to hold on to 48.03M with the revenue now reading 0.22 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.14 cents a share).

Having a look at the company’s valuation, the company is expected to record 0.79 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on FOR sounds very interesting.

Is the stock of FOR attractive?

In related news, Chief Financial Officer, Allen James Douglas bought 5,200 shares of the company’s stock in a transaction that recorded on Jun 12. The purchase was performed at an average price of 14.41, for a total value of 74,931. As the purchase deal closes, the Chief Executive Officer, BARTOK DANIEL C now bought 250 shares of the company’s stock, valued at 2,850. Also, Chief Executive Officer, BARTOK DANIEL C bought 500 shares of the company’s stock in a deal that was recorded on Mar 13. The shares were cost at an average price of 13.25 per share, with a total market value of 6,625. Following this completion of disposal, the Director, Ringler G.F. (Rick) III now holds 2,000 shares of the company’s stock, valued at 41,764. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.10%.

4 out of 5 analysts covering the stock have rated it a Buy, while 1 have maintained a Hold recommendation on Forestar Group Inc.. 0 analysts has assigned a Sell rating on the FOR stock. The 12-month mean consensus price target for the company’s shares has been set at $17.25.