Zillow Group (NASDAQ:ZG) Given New $34.00 Price Target at Sanford C. Bernstein

Key Points

• Sanford C. Bernstein cut its Zillow Group price target from $38 to $34 and maintained a “market perform” rating, implying 8.21% upside from the prior close.
• Analyst views are mixed: the consensus rating is “Hold,” with an average price target of $49.29; 10 analysts rate the stock Buy, 11 Hold, and 2 Sell.
• Zillow shares fell 8.8% to $31.42. The company missed quarterly earnings and revenue estimates, though revenue still grew 7.1% year over year.

Zillow Group (NASDAQ:ZG - Get Free Report) had its price target decreased by equities researchers at Sanford C. Bernstein from $38.00 to $34.00 in a note issued to investors on Thursday, Benzinga reports. The firm presently has a "market perform" rating on the technology company's stock. Sanford C. Bernstein's target price indicates a potential upside of 8.21% from the stock's previous close.

ZG has been the subject of several other reports. Canaccord Genuity Group dropped their target price on shares of Zillow Group from $52.00 to $40.00 and set a "hold" rating for the company in a research report on Thursday, August 6th. Citigroup reduced their price target on shares of Zillow Group from $68.00 to $52.00 and set a "buy" rating on the stock in a research report on Thursday, August 6th. DA Davidson lowered their price objective on shares of Zillow Group from $60.00 to $50.00 and set a "buy" rating for the company in a research report on Thursday, August 6th. Weiss Ratings restated a "sell (d)" rating on shares of Zillow Group in a research note on Wednesday, August 19th. Finally, KeyCorp reduced their target price on Zillow Group from $48.00 to $42.00 and set an "overweight" rating on the stock in a report on Tuesday. Ten analysts have rated the stock with a Buy rating, eleven have given a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $49.29.

Zillow Group Stock Down 8.8%

Shares of NASDAQ ZG traded down $3.03 during trading hours on Thursday, hitting $31.42. 646,124 shares of the stock were exchanged, compared to its average volume of 1,161,539. The company has a market cap of $7.07 billion, a PE ratio of 142.52, a PEG ratio of 1.34 and a beta of 1.95. Zillow Group has a 12 month low of $27.25 and a 12 month high of $74.80. The firm has a fifty day moving average price of $31.82 and a 200-day moving average price of $38.87.

Zillow Group (NASDAQ:ZG - Get Free Report) last announced its quarterly earnings results on Wednesday, November 4th. The technology company reported $0.55 earnings per share for the quarter, missing the consensus estimate of $0.60 by ($0.05). The business had revenue of $724.00 million during the quarter, compared to analysts' expectations of $753.66 million. Zillow Group had a net margin of 1.96% and a return on equity of 2.32%. Zillow Group's revenue for the quarter was up 7.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.44 EPS. As a group, equities analysts anticipate that Zillow Group will post 0.91 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CTO David A. Beitel sold 1,798 shares of the business's stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $34.24, for a total value of $61,563.52. Following the sale, the chief technology officer directly owned 133,013 shares of the company's stock, valued at approximately $4,554,365.12. The trade was a 1.33% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Dan Spaulding sold 3,169 shares of the business's stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $35.37, for a total transaction 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 trade represents a 6.64% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 38,539 shares of company stock valued at $1,323,800. Corporate insiders own 29.88% of the company's stock.

Institutional Investors Weigh In On Zillow Group

Institutional investors have recently bought and sold shares of the stock. Fulcrum Asset Management LLP acquired a new stake in Zillow Group during the third quarter worth about $399,000. Brighton Jones LLC bought a new stake in shares of Zillow Group during the 3rd quarter worth $231,000. Parallel Advisors LLC increased its position in shares of Zillow Group by 244.8% in the third quarter. Parallel Advisors LLC now owns 2,200 shares of the technology company's stock worth $61,000 after acquiring an additional 1,562 shares in the last quarter. Signaturefd LLC acquired a new stake in shares of Zillow Group during the third quarter valued at approximately $154,000. Finally, One Wealth Capital Management LLC purchased a new stake in shares of Zillow Group in the third quarter valued at $216,000. 20.32% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Zillow Group

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

• Positive Sentiment: Third-quarter revenue rose 7% year over year, with rentals helping cushion weakness in home sales. WSJ article
• Neutral Sentiment: Citizens JMP lowered its price target to $40 from $46 but maintained a “market outperform” rating, implying substantial upside from the cited reference price. Citizens JMP recommendations
• Negative Sentiment: Zillow missed third-quarter earnings and revenue expectations: EPS was $0.55 versus $0.60 expected, and revenue was $724 million versus about $754 million expected. Zacks earnings report
• Negative Sentiment: Housing activity weakened sharply in October: newly pending listings fell 16.8% year over year, while Zillow’s preliminary measure of existing-home sales declined 8.7%. This could weigh on transaction-related business. Zillow October market report
• Negative Sentiment: Cantor Fitzgerald cut its price target to $26 from $32 and assigned a “neutral” rating, signaling downside in its outlook. Cantor Fitzgerald recommendations

About Zillow Group

Zillow Group, Inc is a digital real estate company that operates online marketplaces and technology platforms for consumers, real estate professionals, and other housing industry participants. Its services are designed to help people search for homes, understand property values, connect with agents, and manage transactions throughout the residential real estate process.

The company's portfolio includes Zillow, Trulia, StreetEasy, HotPads, and ShowingTime+. Zillow provides home listings, estimated property values, rental information, agent connections, mortgage resources, and other housing-related tools.

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