Morgan Stanley Has Lowered Expectations for Zillow Group (NASDAQ:Z) Stock Price

Key Points

• Morgan Stanley cut Zillow Group’s price target from $60 to $35 while maintaining an “equal weight” rating, implying roughly 26.8% upside from the stock’s $27.60 price.
• Analyst sentiment has weakened, with multiple firms downgrading Zillow to “hold” or reducing price targets. MarketBeat reports a consensus “Hold” rating and an average price target of $57.71.
• Zillow beat quarterly expectations, reporting $0.52 in EPS versus $0.45 expected and revenue of $772 million versus $758.1 million estimated, though the stock remains near its 12-month low and insiders have sold shares to cover tax obligations.

Zillow Group (NASDAQ:Z - Get Free Report) had its price target lowered by investment analysts at Morgan Stanley from $60.00 to $35.00 in a report released on Tuesday, Benzinga reports. The firm presently has an "equal weight" rating on the financial services provider's stock. Morgan Stanley's price objective suggests a potential upside of 26.82% from the company's current price.

Several other equities analysts have also weighed in on Z. Zacks Research lowered shares of Zillow Group from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 4th. Wall Street Zen downgraded shares of Zillow Group from a "buy" rating to a "hold" rating in a report on Saturday, August 8th. Keefe, Bruyette & Woods reduced their price target on shares of Zillow Group from $37.00 to $34.00 and set a "market perform" rating on the stock in a research report on Friday, August 7th. Sanford C. Bernstein lowered shares of Zillow Group from a "strong-buy" rating to a "hold" rating in a research report on Thursday, August 6th. Finally, Jefferies Financial Group decreased their price objective on Zillow Group from $75.00 to $60.00 and set a "buy" rating on the stock in a report on Tuesday, July 14th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $57.71.

Zillow Group Stock Performance

Shares of NASDAQ Z traded down $0.24 during trading on Tuesday, hitting $27.60. 2,059,207 shares of the company were exchanged, compared to its average volume of 4,158,409. The company has a fifty day moving average price of $32.24 and a 200-day moving average price of $35.29. The firm has a market capitalization of $6.21 billion, a PE ratio of 125.60, a P/E/G ratio of 1.26 and a beta of 2.04. Zillow Group has a 12-month low of $26.67 and a 12-month high of $79.40.

Zillow Group (NASDAQ:Z - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The financial services provider reported $0.52 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.45 by $0.07. 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 analyst estimates of $758.10 million. Research analysts anticipate that Zillow Group will post 0.89 earnings per share for the current fiscal year.

Insider Activity

In other Zillow Group news, insider Dan Spaulding sold 3,169 shares of the company's stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $35.37, for a total value of $112,087.53. Following the transaction, the insider owned 44,561 shares of the company's stock, valued at $1,576,122.57. This represents a 6.64% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Jeremy Hofmann sold 5,661 shares of the stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $34.18, for a total transaction of $193,492.98. Following the transaction, the chief financial officer directly owned 59,144 shares of the company's stock, valued at approximately $2,021,541.92. This trade represents a 8.74% 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 ninety days, insiders sold 38,539 shares of company stock worth $1,323,800. 23.76% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Zillow Group

Large investors have recently made changes to their positions in the stock. Towarzystwo Funduszy Inwestycyjnych PZU SA boosted its position in shares of Zillow Group by 34.5% during the fourth quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 1,170 shares of the financial services provider's stock worth $80,000 after buying an additional 300 shares during the period. Leonteq Securities AG grew its stake in shares of Zillow Group by 627.0% in the first quarter. Leonteq Securities AG now owns 1,345 shares of the financial services provider's stock valued at $56,000 after buying an additional 1,160 shares in the last quarter. EverSource Wealth Advisors LLC raised its holdings in shares of Zillow Group by 283.2% in the 1st quarter. EverSource Wealth Advisors LLC now owns 1,414 shares of the financial services provider's stock valued at $59,000 after buying an additional 1,045 shares during the period. Integrated Wealth Concepts LLC purchased a new stake in shares of Zillow Group in the 2nd quarter valued at $78,000. Finally, Rockefeller Capital Management L.P. raised its holdings in shares of Zillow Group by 61.9% in the 4th quarter. Rockefeller Capital Management L.P. now owns 3,315 shares of the financial services provider's stock valued at $226,000 after buying an additional 1,267 shares during the period. 71.01% of the stock is currently owned by institutional investors and hedge funds.

Zillow Group Company Profile

Zillow Group, Inc is a technology company that operates digital real estate marketplaces and related services in the United States. Its platforms help consumers search for homes to buy or rent, research neighborhoods and property values, connect with real estate professionals, and manage aspects of the transaction process.

The company's portfolio includes Zillow, Trulia, StreetEasy and HotPads, along with services such as Zillow Premier Agent, Zillow Rentals, ShowingTime+ and Zillow Home Loans.

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