DA Davidson Lowers Zillow Group (NASDAQ:ZG) Price Target to $50.00

Zillow Group (NASDAQ:ZG) had its target price reduced by research analysts at DA Davidson from $60.00 to $50.00 in a report issued on Thursday, MarketBeat Ratings reports. The brokerage presently has a “buy” rating on the technology company’s stock. DA Davidson’s price target would suggest a potential upside of 47.28% from the stock’s current price.

Several other equities research analysts also recently weighed in on ZG. Zacks Research downgraded shares of Zillow Group from a “strong-buy” rating to a “hold” rating in a research note on Tuesday. Royal Bank Of Canada reduced their price objective on Zillow Group from $70.00 to $55.00 and set an “outperform” rating for the company in a research note on Thursday. Weiss Ratings cut Zillow Group from a “sell (d+)” rating to a “sell (d)” rating in a research report on Friday, May 22nd. Cantor Fitzgerald decreased their price objective on Zillow Group from $34.00 to $32.00 and set a “neutral” rating for the company in a research report on Thursday. Finally, KeyCorp lowered their target price on Zillow Group from $65.00 to $57.00 and set an “overweight” rating on the stock in a research note on Monday, August 3rd. Eleven investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $53.86.

Zillow Group Price Performance

Shares of Zillow Group stock opened at $33.95 on Thursday. The firm’s fifty day simple moving average is $33.16 and its 200-day simple moving average is $41.54. The stock has a market capitalization of $7.77 billion, a price-to-earnings ratio of 154.33, a PEG ratio of 1.44 and a beta of 1.95. Zillow Group has a 12 month low of $29.03 and a 12 month high of $90.22.

Zillow Group (NASDAQ:ZG) last issued its quarterly 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 net margin of 1.96% and a return on equity of 2.32%. The firm had revenue of $772.00 million during the quarter, compared to analysts’ expectations of $758.25 million. During the same quarter in the prior year, the business earned $0.40 EPS. Zillow Group’s quarterly revenue was up 17.9% compared to the same quarter last year. Analysts anticipate that Zillow Group will post 0.9 earnings per share for the current year.

Insider Transactions at Zillow Group

In related news, CEO Jeremy Wacksman sold 9,072 shares of Zillow Group stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $36.54, for a total transaction of $331,490.88. Following the completion of the transaction, the chief executive officer directly owned 153,699 shares of the company’s stock, valued at approximately $5,616,161.46. The trade was a 5.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Dan Spaulding sold 3,078 shares of the company’s stock in a transaction 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 sale, the insider directly owned 49,696 shares in the company, valued at $1,858,630.40. This trade represents a 5.83% decrease in their position. 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 sold a total of 42,910 shares of company stock worth $1,605,732 over the last ninety days. 29.88% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Zillow Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Arax Advisory Partners grew its position in shares of Zillow Group by 402.3% in the fourth quarter. Arax Advisory Partners now owns 442 shares of the technology company’s stock valued at $30,000 after purchasing an additional 354 shares during the last quarter. First Command Advisory Services Inc. purchased a new stake in Zillow Group in the 4th quarter valued at approximately $34,000. EverSource Wealth Advisors LLC lifted its stake in Zillow Group by 183.6% in the 1st quarter. EverSource Wealth Advisors LLC now owns 984 shares of the technology company’s stock valued at $41,000 after buying an additional 637 shares in the last quarter. Fifth Third Bancorp grew its holdings in Zillow Group by 990.3% during the 1st quarter. Fifth Third Bancorp now owns 1,014 shares of the technology company’s stock valued at $42,000 after buying an additional 921 shares during the last quarter. Finally, Kestra Advisory Services LLC purchased a new position in Zillow Group during the fourth quarter worth $47,000. Institutional investors and hedge funds own 20.32% of the company’s stock.

Key Zillow Group News

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

• Positive Sentiment: Zillow reported second-quarter earnings of $0.52 per share, above the $0.44 analyst consensus, while revenue reached $772 million, exceeding expectations of $758.25 million. Revenue increased 17.9% year over year, supported by growth in mortgage and rentals. Zillow Q2 Earnings Surpass Estimates on Solid Revenue Growth
• Positive Sentiment: Several analysts still see upside: Piper Sandler and Citizens JMP maintain bullish ratings with $46 price targets, while DA Davidson and Benchmark retain buy ratings despite lowering their targets. These targets remain above the stock’s recent trading level.
• Neutral Sentiment: Zillow’s July market report showed home sales rising 7% year over year, the strongest annual gain of 2026. However, the company said newly pending sales fell sharply from June as mortgage rates reached a one-year high, raising questions about the durability of the improvement. Zillow July Market Report
• Negative Sentiment: Analysts broadly lowered their expectations following the earnings report. Wells Fargo cut its target to $35 and assigned an equal-weight rating, Evercore downgraded Zillow to hold with a $40 target, and Susquehanna and Cantor Fitzgerald also reduced targets. RBC cited near-term pressure from Zillow’s preferred-model shift. Zillow Preferred-Model Shift Adds Near-Term Pressure
• Negative Sentiment: Multiple law firms are soliciting investors ahead of the August 10 lead-plaintiff deadline for a securities-fraud class action covering purchases from February 11, 2025, through May 7, 2026. The litigation involves alleged anticompetitive conduct and related regulatory risks, creating an additional overhang for ZG.

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.