Zillow Group (NASDAQ:ZG) Shares Gap Down After Analyst Downgrade

Shares of Zillow Group, Inc. (NASDAQ:ZG) gapped down prior to trading on Thursday after DA Davidson lowered their price target on the stock from $60.00 to $50.00. The stock had previously closed at $36.89, but opened at $31.12. DA Davidson currently has a buy rating on the stock. Zillow Group shares last traded at $31.5530, with a volume of 485,665 shares traded.

Several other equities analysts have also recently commented on the company. Barclays reduced their target price on Zillow Group from $58.00 to $54.00 and set an “equal weight” rating for the company in a research report on Friday, May 8th. BTIG Research reiterated a “neutral” rating on shares of Zillow Group in a research report on Thursday, June 11th. KeyCorp cut their price objective on Zillow Group from $65.00 to $57.00 and set an “overweight” rating for the company in a report on Monday. Citigroup restated a “buy” rating on shares of Zillow Group in a research report on Thursday. Finally, 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. Eleven investment analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $58.86.

Insiders Place Their Bets

In other news, CEO Jeremy Wacksman sold 9,072 shares of the company’s stock in a transaction dated 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 transaction, the chief executive officer directly owned 153,699 shares in the company, valued at approximately $5,616,161.46. This represents a 5.57% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Jeremy Hofmann sold 5,501 shares of the stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $37.40, for a total value of $205,737.40. Following the transaction, the chief financial officer owned 68,315 shares in the company, valued at $2,554,981. This trade represents a 7.45% decrease in their ownership of the stock. 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. Insiders have sold 42,910 shares of company stock valued at $1,605,732 over the last quarter. Insiders own 29.88% 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 EPS of $0.52, above the $0.44 consensus estimate, while revenue rose 17.9% year over year to $772 million, exceeding expectations of $758.25 million. Zillow Group Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: DA Davidson maintained a “buy” rating while lowering its price target from $60 to $50, implying substantial upside from the current quotation. Benzinga analyst coverage
• Neutral Sentiment: July home sales increased 7% year over year, the strongest annual gain of 2026; however, sharply lower newly pending sales and higher mortgage rates suggest housing activity could weaken during the second half. Zillow July Market Report
• Neutral Sentiment: Susquehanna cut its price target from $50 to $38 and shifted to a “neutral” rating, while KeyBanc reportedly retained its “buy” recommendation. Benzinga analyst coverage
• Negative Sentiment: Zillow posted a $4 million net loss as $36 million of restructuring costs weighed on results, despite the adjusted earnings beat. The company also cut more than 500 jobs, or approximately 7% of its workforce, adding concerns about operating momentum and execution. Zillow Swings to Loss on Restructuring Costs
• Negative Sentiment: Third-quarter revenue guidance of $745 million-$760 million was below the $772.3 million consensus estimate, while full-year guidance of $2.9 billion-$3.0 billion was at or below expectations. Cantor Fitzgerald lowered its target from $34 to $32 with a “neutral” rating, and Zacks Research downgraded the stock from “strong buy” to “hold.” Benzinga and Zacks analyst coverage
• Negative Sentiment: Multiple law firms are promoting a securities-fraud class action with an August 10 lead-plaintiff deadline, creating an additional headline and potential legal risk for investors. Zillow Securities Class Action Notice

Institutional Investors Weigh In On Zillow Group

A number of institutional investors have recently made changes to their positions in ZG. Norges Bank bought a new position in Zillow Group during the 4th quarter worth approximately $152,050,000. M&T Bank Corp lifted its stake in Zillow Group by 38,344.0% in the fourth quarter. M&T Bank Corp now owns 1,604,270 shares of the technology company’s stock worth $120,092,000 after acquiring an additional 1,600,097 shares during the period. UBS Group AG lifted its stake in Zillow Group by 44.5% in the fourth quarter. UBS Group AG now owns 1,018,448 shares of the technology company’s stock worth $69,489,000 after acquiring an additional 313,643 shares during the period. Tiger Global Management LLC boosted its holdings in Zillow Group by 30.7% in the fourth quarter. Tiger Global Management LLC now owns 1,023,733 shares of the technology company’s stock valued at $69,849,000 after acquiring an additional 240,690 shares in the last quarter. Finally, Virtu Financial LLC increased its position in Zillow Group by 271.9% during the 3rd quarter. Virtu Financial LLC now owns 293,718 shares of the technology company’s stock valued at $21,864,000 after purchasing an additional 214,743 shares during the period. Hedge funds and other institutional investors own 20.32% of the company’s stock.

Zillow Group Stock Performance

The firm has a market capitalization of $7.43 billion, a PE ratio of 128.33, a P/E/G ratio of 1.58 and a beta of 1.95. The stock’s 50-day simple moving average is $33.23 and its 200-day simple moving average is $41.83.

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

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.