Zillow Group (NASDAQ:ZG) Downgraded by Zacks Research to “Hold”

Zacks Research lowered shares of Zillow Group (NASDAQ:ZG) from a strong-buy rating to a hold rating in a research report sent to investors on Tuesday,Zacks.com reports.

A number of other research firms also recently weighed in on ZG. Wells Fargo & Company upped their price target on Zillow Group from $45.00 to $46.00 and gave the stock an “equal weight” rating in a research note on Tuesday, July 7th. Evercore set a $40.00 target price on Zillow Group in a research report on Thursday. Royal Bank Of Canada cut their target price on Zillow Group to $70.00 and set an “outperform” rating on the stock in a report on Wednesday, June 10th. Weiss Ratings downgraded shares of Zillow Group from a “sell (d+)” rating to a “sell (d)” rating in a research report on Friday, May 22nd. Finally, Barclays lowered their price objective on shares of Zillow Group from $58.00 to $54.00 and set an “equal weight” rating on the stock in a report on Friday, May 8th. Twelve analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $61.90.

Zillow Group Stock Down 0.4%

Shares of ZG stock opened at $36.89 on Tuesday. The firm has a 50 day moving average of $33.23 and a 200-day moving average of $41.83. The company has a market cap of $8.44 billion, a price-to-earnings 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.

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

Insider Buying and Selling

In other Zillow Group news, CFO Jeremy Hofmann sold 5,501 shares of the firm’s stock in a transaction on Monday, May 18th. The stock was sold at an average price of $37.40, for a total transaction of $205,737.40. Following the transaction, the chief financial officer directly owned 68,315 shares in the company, valued at approximately $2,554,981. This trade represents a 7.45% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 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, CEO Jeremy Wacksman sold 9,072 shares of the company’s 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 sale, the chief executive officer 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 position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 42,910 shares of company stock valued at $1,605,732. 29.88% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Zillow Group

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Arax Advisory Partners boosted its stake in shares of Zillow Group by 402.3% in the 4th quarter. Arax Advisory Partners now owns 442 shares of the technology company’s stock worth $30,000 after buying an additional 354 shares during the last quarter. First Command Advisory Services Inc. purchased a new position in Zillow Group in the fourth quarter worth $34,000. Kestra Advisory Services LLC bought a new position in Zillow Group in the 4th quarter valued at $47,000. Quarry LP bought a new position in Zillow Group in the 4th quarter valued at $56,000. Finally, Global Retirement Partners LLC increased its position in shares of Zillow Group by 4,130.0% during the 4th quarter. Global Retirement Partners LLC now owns 846 shares of the technology company’s stock valued at $58,000 after purchasing an additional 826 shares during the last quarter. Hedge funds and other institutional investors own 20.32% of the company’s stock.

Zillow Group News Roundup

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.