Forestar Group Inc . (NYSE:FOR), a real estate firm with a market capitalization of $1.23 billion and currently trading at $24.09, announced changes to its corporate governance and the election of directors following its Annual Meeting of Stockholders held on Monday. The company's stock has seen significant pressure recently, trading near its 52-week low. According to InvestingPro analysis, the stock appears undervalued, trading at an attractive P/E ratio of 6.75.
The company, which is incorporated in Delaware and headquartered in Arlington, Texas, disclosed through an SEC filing that its stockholders have voted to amend its charter to increase the threshold for board-level approval of certain investment decisions and transactions requiring consent from D.R. Horton, Inc.
The amendments, recommended by Forestar's Board of Directors, were approved at the Annual Meeting. As a result, the company filed a Certificate of Amendment with the Delaware Secretary of State on Tuesday, which took immediate effect. A Third Amended and Restated Certificate of Incorporation was also filed, integrating the original charter and the amendment. InvestingPro data shows the company maintains a GREAT financial health score, suggesting strong corporate governance practices.
At the Annual Meeting, stockholders elected six director nominees to serve until the 2026 Annual Meeting. The directors, including Kellie L. Fischer, Samuel R. Fuller, Lisa H. Jamieson, Elizabeth (Betsy) Parmer, George W Seagraves II, and Donald J. Tomnitz, were chosen with a majority of votes cast, with abstentions and broker non-votes recorded as well.
Additionally, an advisory vote on executive compensation received approval from the stockholders. Forestar's executives' compensation was supported by a significant majority, with a small percentage voting against or abstaining.
The appointment of Ernst & Young LLP as the company's independent registered public accounting firm for the fiscal year ending September 30, 2025, was ratified by stockholders, with an overwhelming majority favoring the decision.
The company's SEC filing, which provides the official record of these corporate actions, ensures transparency for stockholders and the market. The reported changes to Forestar's governance structure and the election results reflect the stockholders' decisions and the company's commitment to compliance and accountability.
With annual revenue of $1.45 billion, Forestar remains a significant player in its sector. Investors seeking deeper insights into Forestar's financial health and growth prospects can access comprehensive analysis and 13 additional ProTips through InvestingPro's detailed research reports.
Forestar's business address and contact information, as well as the details of the former company name changes, were also included in the SEC filing, underscoring the company's history and evolution. The information is based on a press release statement.
In other recent news, Forestar Group Inc. has experienced notable changes in its financial performance. Citi analysts recently adjusted their stance on Forestar Group, reducing the price target to $32 from $39 but maintaining a Buy rating.
This decision followed Forestar's first-quarter performance, which fell short of expectations due to a decline in delivery volumes. Despite this, Forestar's management reaffirmed their full-year 2025 volume and revenue guidance, predicting 16,000 to 16,500 lots.
Citi analysts also revised their earnings estimates for fiscal years 2025 to 2027, decreasing them by $0.25 each. This adjustment reflects both the first-quarter results and a revised margin outlook in light of the sustained high-rate environment. Despite these changes, Citi maintains a positive outlook on Forestar Group.
Forestar Group's Q1 2024 earnings and revenue fell short of analysts' expectations, with an EPS of $0.32 and revenue of $250.4 million, compared to the forecasted $0.70 EPS and $325.4 million revenue. Despite these shortfalls, the company expanded its operational reach, increasing its community count and entering new markets. Forestar Group maintains optimism about its future, projecting revenue between $1.6 billion and $1.65 billion for fiscal 2025. These are the recent developments in the company's performance.
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