Zillow Group (NASDAQ:Z) Downgraded to Hold Rating by Sanford C. Bernstein

Zillow Group (NASDAQ:Z) was downgraded by investment analysts at Sanford C. Bernstein from a “strong-buy” rating to a “hold” rating in a note issued to investors on Thursday,Zacks.com reports.

A number of other research analysts also recently commented on the stock. Weiss Ratings downgraded shares of Zillow Group from a “sell (d+)” rating to a “sell (d)” rating in a research note on Friday, May 22nd. Keefe, Bruyette & Woods dropped their target price on shares of Zillow Group from $50.00 to $37.00 and set a “market perform” rating for the company in a research report on Monday, July 13th. Deutsche Bank Aktiengesellschaft cut their target price on shares of Zillow Group from $80.00 to $68.00 and set a “buy” rating on the stock in a research note on Friday, May 8th. UBS Group reduced their price target on shares of Zillow Group from $80.00 to $75.00 and set a “buy” rating on the stock in a research report on Tuesday, April 28th. Finally, Morgan Stanley set a $60.00 price target on Zillow Group in a research note on Thursday. Two research analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $68.88.

Zillow Group Stock Down 7.4%

Shares of Z opened at $33.43 on Thursday. The business’s 50 day moving average is $33.08 and its two-hundred day moving average is $41.59. Zillow Group has a 52-week low of $29.23 and a 52-week high of $93.88. The firm has a market cap of $7.65 billion, a price-to-earnings ratio of 151.96, a PEG ratio of 1.54 and a beta of 1.98.

Zillow Group (NASDAQ:Z) last released its earnings results on Wednesday, August 5th. The financial services provider reported $0.52 EPS for the quarter, beating the consensus estimate of $0.45 by $0.07. The company had revenue of $772.00 million during the quarter, compared to analysts’ expectations of $758.10 million. Zillow Group had a return on equity of 2.27% and a net margin of 1.96%. On average, equities analysts expect that Zillow Group will post 0.9 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Dan Spaulding sold 3,078 shares of the business’s stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $37.40, for a total transaction of $115,117.20. Following the completion of the sale, the insider owned 49,696 shares of the company’s stock, valued at $1,858,630.40. This represents a 5.83% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible 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 dated Friday, May 15th. The stock was sold at an average price of $37.23, for a total transaction of $125,241.72. Following the sale, the general counsel owned 65,245 shares in the company, valued at approximately $2,429,071.35. This trade represents a 4.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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. In the last 90 days, insiders sold 42,910 shares of company stock worth $1,605,732. Company insiders own 25.03% of the company’s stock.

Hedge Funds Weigh In On Zillow Group

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Tiger Global Management LLC boosted its stake in shares of Zillow Group by 21.7% during the 1st quarter. Tiger Global Management LLC now owns 7,368,957 shares of the financial services provider’s stock worth $304,927,000 after acquiring an additional 1,312,000 shares in the last quarter. Baillie Gifford & Co. boosted its position in shares of Zillow Group by 11.4% in the 4th quarter. Baillie Gifford & Co. now owns 739,270 shares of the financial services provider’s stock valued at $50,433,000 after purchasing an additional 75,682 shares during the period. IFP Advisors Inc boosted its position in shares of Zillow Group by 17,458.4% in the 4th quarter. IFP Advisors Inc now owns 73,921 shares of the financial services provider’s stock valued at $5,043,000 after purchasing an additional 73,500 shares during the period. Weiss Asset Management LP purchased a new position in Zillow Group in the 1st quarter worth about $1,743,000. Finally, Emmett Investment Management LP raised its holdings in Zillow Group by 353.9% during the 1st quarter. Emmett Investment Management LP now owns 96,236 shares of the financial services provider’s stock worth $3,897,000 after buying an additional 75,036 shares during the period. 71.01% of the stock is currently owned by institutional investors and hedge funds.

Zillow Group News Summary

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

• Positive Sentiment: Second-quarter results exceeded estimates. Zillow reported adjusted EPS of $0.52 versus the $0.45 consensus and revenue of $772 million versus expectations of $758.1 million. Revenue increased 18% year over year, providing evidence of continued demand for the company’s services. Zillow Surpasses Q2 Earnings and Revenue Estimates
• Neutral Sentiment: Management is reshaping its leadership structure. CFO Jeremy Hofmann will also become chief operating officer, while Cassandra Knight becomes Zillow’s first chief legal and policy officer. The changes could improve execution, but they also highlight a period of significant organizational change. Zillow Strengthens Executive Leadership Team
• Negative Sentiment: Forward guidance came in below analyst expectations. Zillow forecast third-quarter revenue of $745 million to $760 million, below the $772.3 million consensus, and full-year revenue of $2.9 billion to $3.0 billion, roughly below or at the low end of the $3.0 billion estimate. The soft outlook drove after-hours selling. Zillow Stock Slides on Soft Outlook
• Negative Sentiment: Restructuring costs pushed Zillow to a loss. The company posted a $4 million net loss despite higher revenue, as $36 million in restructuring expenses weighed on results. Zillow also plans to eliminate just over 500 jobs, or about 7% of its workforce, underscoring management’s concern about a flat housing market. Zillow Layoffs Amid Flat Housing Market
• Negative Sentiment: Housing indicators point to a slower second half. July home sales rose 7% year over year, but sharply lower newly pending sales and higher mortgage rates suggest the improvement may not persist. Zacks also downgraded Zillow from “strong buy” to “hold.” Zillow July Market Report
• Negative Sentiment: Several law firms are promoting a securities-fraud class action involving investors who purchased Zillow shares between February 11, 2025 and May 7, 2026. The August 10 lead-plaintiff deadline adds reputational and potential legal-risk overhang, although the allegations have not been proven. Zillow Securities Class Action Deadline

Zillow Group Company Profile

Zillow Group, Inc is an online real estate marketplace company that operates a portfolio of consumer-facing websites and mobile apps designed to connect buyers, sellers, renters, homeowners and real estate professionals. The company’s platforms aggregate property listings, rental listings, and related information to help users search for homes, estimate property values and connect with agents and service providers. Zillow generates revenue primarily through advertising and lead-generation services for real estate professionals, property managers and mortgage lenders.

Key products and services include the Zillow and Trulia consumer websites and apps, which provide searchable listings, photos, neighborhood data and the company’s automated home valuation tool known as the “Zestimate.” Zillow also offers a rentals marketplace, a mortgage marketplace and tools for home buying and selling such as Zillow Premier Agent for agent advertising and leads, as well as ancillary services designed to support transactions, including closing and title-related offerings.