Elizabeth Parmer, a director at Forestar Group Inc . (NYSE:FOR), recently sold 680 shares of the company's common stock, according to a filing with the Securities and Exchange Commission. The shares were sold at a weighted average price of $29.3345, yielding a total of $19,947. Following this transaction, Parmer retains 1,320 shares of the company. The sale was executed on November 21, 2024. The reported price range for the transaction was between $29.3301 and $29.3500.
In other recent news, Forestar Group Inc. has entered into an equity distribution agreement with a consortium of sales agents, including J.P. Morgan Securities LLC, Citigroup (NYSE:C) Global Markets Inc., and Wells Fargo (NYSE:WFC) Securities, LLC. The agreement permits the sale of up to $300 million of the company's common stock, although the company retains the discretion to suspend sales at any time. The company's fiscal year 2024 showed strong performance, with significant growth in both revenue and earnings per share. Forestar Group Inc. delivered over 5,300 lots in the fourth quarter and more than 15,000 lots for the full year. Looking ahead, management has provided revenue projections for fiscal year 2025, estimating between $1.6 billion to $1.65 billion. The company also plans to deliver between 16,000 and 16,500 lots in the upcoming fiscal year. Forestar Group Inc. plans to invest approximately $2 billion in fiscal year 2025, an increase from the $1.6 billion invested in land acquisition and development in fiscal year 2024. The company aims to increase its market share and diversify relationships with builders as part of its expansion plans. These are the recent developments in the company.
InvestingPro Insights
In light of Elizabeth Parmer's recent stock sale, it's worth examining Forestar Group Inc.'s (NYSE:FOR) current financial position and market valuation. According to InvestingPro data, Forestar Group has a market capitalization of $1.48 billion and is trading at a price-to-earnings (P/E) ratio of 7.27, which is relatively low compared to its peers in the real estate development sector.
One of the InvestingPro Tips highlights that Forestar is "Trading at a low P/E ratio relative to near-term earnings growth," with a PEG ratio of 0.36 for the last twelve months as of Q4 2024. This suggests that the stock may be undervalued relative to its growth prospects. Additionally, the company's price-to-book ratio stands at 0.93, indicating that the stock is trading below its book value.
Despite the recent insider sale, Forestar Group appears to be in a solid financial position. The company reported revenue of $1.51 billion for the last twelve months as of Q4 2024, with a revenue growth of 5.05% over the same period. Moreover, Forestar's operating income margin of 15.95% and EBITDA of $243.87 million demonstrate the company's ability to generate profits from its operations.
It's worth noting that Forestar Group does not pay a dividend to shareholders, which may be a consideration for income-focused investors. However, this could also indicate that the company is reinvesting its profits for future growth.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Forestar Group, providing a deeper understanding of the company's financial health and market position.
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