Zillow Group (NASDAQ:ZG) Rating Lowered to Hold at Zacks Research

Zillow Group (NASDAQ:ZG) was downgraded by analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research note issued to investors on Tuesday,Zacks.com reports.

Several other research analysts also recently weighed in on ZG. Piper Sandler lowered their price objective on shares of Zillow Group from $70.00 to $55.00 and set an “overweight” rating on the stock in a report on Thursday, May 7th. Sanford C. Bernstein cut shares of Zillow Group from a “buy” rating to a “market perform” rating and set a $38.00 price target on the stock. in a research report on Thursday. Mizuho dropped their target price on Zillow Group from $65.00 to $53.00 and set a “neutral” rating on the stock in a report on Thursday, May 7th. UBS Group cut their price objective on shares of Zillow Group from $75.00 to $50.00 and set a “buy” rating on the stock in a report on Friday, July 31st. Finally, BTIG Research reiterated a “neutral” rating on shares of Zillow Group in a report on Thursday, June 11th. Twelve equities research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $62.57.

Zillow Group Stock Performance

Shares of Zillow Group stock opened at $36.89 on Tuesday. The stock has a market capitalization of $8.44 billion, a PE ratio of 147.56, a price-to-earnings-growth ratio of 1.58 and a beta of 1.95. Zillow Group has a 52 week low of $29.03 and a 52 week high of $90.22. The stock has a 50 day moving average price of $33.23 and a two-hundred day moving average price of $41.83.

Zillow Group (NASDAQ:ZG) last issued its earnings results on Wednesday, August 5th. The technology company reported $0.52 earnings per share for the quarter, topping analysts’ consensus estimates of $0.44 by $0.08. Zillow Group had a return on equity of 1.41% and a net margin of 2.27%.The company had revenue of $772.00 million for the quarter, compared to analyst estimates of $758.25 million. During the same period in the prior year, the firm earned $0.40 earnings per share. Zillow Group’s revenue for the quarter was up 17.9% on a year-over-year basis. Research analysts forecast that Zillow Group will post 0.9 EPS for the current year.

Insider Activity at Zillow Group

In related news, insider Dan Spaulding sold 3,078 shares of Zillow Group stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $37.40, for a total value of $115,117.20. Following the sale, the insider owned 49,696 shares of the company’s stock, valued at approximately $1,858,630.40. The trade was a 5.83% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Bradley D. Owens sold 3,364 shares of the stock in a transaction on Friday, May 15th. The shares were sold at an average price of $37.23, for a total value of $125,241.72. Following the transaction, the general counsel directly owned 65,245 shares of the company’s stock, valued at approximately $2,429,071.35. This trade represents a 4.90% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 42,910 shares of company stock valued at $1,605,732 in the last 90 days. 29.88% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Zillow Group

Several large investors have recently modified their holdings of the business. Polianta Ltd lifted its position in shares of Zillow Group by 60.9% during the second quarter. Polianta Ltd now owns 58,100 shares of the technology company’s stock worth $1,822,000 after acquiring an additional 22,000 shares in the last quarter. MFG Wealth Management Inc. purchased a new position in Zillow Group during the second quarter valued at approximately $2,146,000. Assenagon Asset Management S.A. bought a new position in Zillow Group in the 2nd quarter valued at $1,546,000. NewEdge Advisors LLC increased its holdings in shares of Zillow Group by 6.7% in the first quarter. NewEdge Advisors LLC now owns 11,071 shares of the technology company’s stock worth $458,000 after purchasing an additional 699 shares during the period. Finally, Edgestream Partners L.P. bought a new stake in Zillow Group during the first quarter valued at $398,000. Hedge funds and other institutional investors own 20.32% of the company’s stock.

Key Headlines Impacting Zillow Group

Here are the key news stories impacting Zillow Group this week:

• Positive Sentiment: Zillow reported second-quarter adjusted earnings of $0.52 per share, above the $0.44 analyst consensus, while revenue rose 17.9% year over year to $772 million, exceeding estimates of approximately $758 million. Zillow Group Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: KeyBanc maintained its Buy rating, signaling continued analyst support following the quarterly results. KeyBanc Maintains Buy Rating
• Neutral Sentiment: Zillow expanded Chief Financial Officer Jeremy Hofmann’s responsibilities to include chief operating officer and appointed Cassandra Knight as its first chief legal and policy officer. The changes are intended to support the company’s housing “super app” strategy but add to leadership-transition uncertainty. Zillow Strengthens Executive Leadership Team
• Negative Sentiment: Third-quarter revenue guidance of $745 million to $760 million fell below the $772.3 million consensus estimate. Full-year revenue guidance of $2.9 billion to $3.0 billion also only reached, rather than exceeded, the roughly $3.0 billion analyst forecast, raising concerns about slowing growth. Zillow Stock Sinks on Layoffs and Soft Guidance
• Negative Sentiment: Zillow recorded a $4 million net loss after $36 million in restructuring costs, contrasting with analysts’ expectation for approximately $21 million of net income. The company also eliminated more than 500 positions, or about 7% of its workforce, suggesting management is cutting costs amid operating challenges. Zillow Swings to Loss on Restructuring Costs
• Negative Sentiment: Several law firms reiterated notices about a securities-fraud class action and an August 10 lead-plaintiff deadline involving alleged anticompetitive agreements and regulatory risks. The legal announcements add reputational and potential financial-risk overhang, although they do not represent a final finding of wrongdoing. Zillow Securities Fraud Class Action Notice

About Zillow Group

Zillow Group (NASDAQ:ZG) is a U.S.-based online real estate marketplace that connects consumers, real estate professionals and mortgage lenders through a suite of digital products and advertising services. Founded in 2006 by Rich Barton and Lloyd Frink and headquartered in Seattle, Washington, the company operates a portfolio of consumer-facing brands and tools designed to simplify home search, rental discovery, valuation and mortgage shopping.

Zillow’s core products include its consumer websites and mobile apps that list homes for sale and rent, the Zestimate automated home value estimate, and marketplaces that connect buyers and renters with agents and lenders.