Zillow Group (NASDAQ:Z) Trading Up 6.8% – Should You Buy?

Zillow Group, Inc. (NASDAQ:Z)’s stock price traded up 6.8% on Wednesday . The stock traded as high as $34.03 and last traded at $34.0180. Approximately 947,925 shares traded hands during mid-day trading, a decline of 78% from the average session volume of 4,274,018 shares. The stock had previously closed at $31.86.

More Zillow Group News

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

• Positive Sentiment: Jefferies cut its price target on Zillow Group but kept a buy rating, implying substantial upside from recent trading levels and offering some support for the stock. Jefferies lowers Zillow price target
• Neutral Sentiment: Zillow Research said America’s housing deficit remained near 4.7 million homes in 2024, with strong multifamily construction slowing the growth in the shortfall. The data reinforces the long-term housing supply backdrop for Zillow’s business, but it is not an immediate earnings catalyst. Zillow housing deficit research release
• Negative Sentiment: Multiple law firms announced or promoted class-action lawsuits and lead-plaintiff deadlines against Zillow Group over alleged securities-law violations, creating legal overhang and investor concern. Class action lawsuit announcement
• Negative Sentiment: Recent reports say the lawsuits stem from a sharp stock decline tied to an alleged anticompetitive agreement with Redfin, which is weighing on sentiment and could keep the shares volatile. Zillow securities fraud lawsuit report

Wall Street Analyst Weigh In

Several research analysts recently issued reports on the stock. Royal Bank Of Canada cut their target price on shares of Zillow Group from $95.00 to $70.00 and set an “outperform” rating on the stock in a research note on Wednesday, June 10th. Keefe, Bruyette & Woods dropped their price objective on shares of Zillow Group from $50.00 to $37.00 and set a “market perform” rating on the stock in a report on Monday. Jefferies Financial Group cut their price objective on shares of Zillow Group from $75.00 to $60.00 and set a “buy” rating on the stock in a research report on Tuesday. Deutsche Bank Aktiengesellschaft reduced their target price on Zillow Group from $80.00 to $68.00 and set a “buy” rating for the company in a research note on Friday, May 8th. Finally, JPMorgan Chase & Co. dropped their price target on Zillow Group from $84.00 to $76.00 and set an “overweight” rating on the stock in a research note on Thursday, May 7th. Three equities research analysts have rated the stock with a Strong Buy rating, six have given a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $72.38.

Zillow Group Price Performance

The company’s fifty day simple moving average is $34.74 and its two-hundred day simple moving average is $45.78. The stock has a market cap of $7.68 billion, a price-to-earnings ratio of 134.26, a P/E/G ratio of 1.38 and a beta of 1.98.

Zillow Group (NASDAQ:Z) last issued its quarterly earnings data on Wednesday, May 6th. The financial services provider reported $0.53 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.43 by $0.10. Zillow Group had a net margin of 2.27% and a return on equity of 1.41%. The firm had revenue of $708.00 million during the quarter, compared to analysts’ expectations of $705.10 million. On average, analysts forecast that Zillow Group, Inc. will post 0.9 earnings per share for the current year.

Insider Activity

In other news, CEO Jeremy Wacksman sold 9,072 shares of the stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $36.54, for a total value of $331,490.88. Following the completion of the sale, the chief executive officer directly owned 153,699 shares of the company’s stock, valued at $5,616,161.46. This represents a 5.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Dan Spaulding sold 3,078 shares of the firm’s 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 completion of the transaction, the insider owned 49,696 shares in the company, valued at $1,858,630.40. This represents a 5.83% 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 three months, 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

Hedge funds have recently bought and sold shares of the company. V Square Quantitative Management LLC bought a new stake in shares of Zillow Group in the 4th quarter worth $28,000. Flagship Harbor Advisors LLC purchased a new position in Zillow Group during the fourth quarter worth about $43,000. IFC & Insurance Marketing Inc. bought a new stake in Zillow Group in the 4th quarter worth about $68,000. SBI Okasan Asset Management Co.Ltd. bought a new stake in Zillow Group in the 4th quarter worth about $71,000. Finally, Towarzystwo Funduszy Inwestycyjnych PZU SA increased its stake in Zillow Group by 34.5% in the 4th quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 1,170 shares of the financial services provider’s stock valued at $80,000 after buying an additional 300 shares during the last quarter. 71.01% of the stock is owned by hedge funds and other institutional investors.

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.