Zillow Group (NASDAQ:ZG) Price Target Cut to $26.00 by Analysts at Cantor Fitzgerald

Key Points

• Cantor Fitzgerald cut Zillow Group’s price target from $32 to $26 and maintained a neutral rating, implying 24.5% downside from the share price cited in the report.
• Zillow’s third-quarter results missed expectations: earnings were $0.55 per share versus $0.60 forecast, and revenue was $724 million versus about $754 million expected. Revenue nevertheless rose 7.1% year over year, with rentals helping offset weakness in home sales.
• Analyst sentiment overall was mixed but leaned toward Hold: 10 analysts rated the stock Buy, 11 Hold, and 2 Sell, with a consensus price target of $49.81.

Zillow Group (NASDAQ:ZG - Get Free Report) had its price objective dropped by stock analysts at Cantor Fitzgerald from $32.00 to $26.00 in a research note issued on Thursday, Benzinga reports. The brokerage presently has a "neutral" rating on the technology company's stock. Cantor Fitzgerald's price target indicates a potential downside of 24.53% from the company's current price.

ZG has been the subject of a number of other research reports. DA Davidson dropped their target price 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. Susquehanna decreased their price objective on shares of Zillow Group from $50.00 to $38.00 and set a "neutral" rating on the stock in a research note on Thursday, August 6th. Citigroup decreased their price objective on shares of Zillow Group from $68.00 to $52.00 and set a "buy" rating on the stock in a research note on Thursday, August 6th. Sanford C. Bernstein cut shares of Zillow Group from an "outperform" rating to a "market perform" rating and cut their target price for the company from $50.00 to $38.00 in a research note on Thursday, August 6th. Finally, Weiss Ratings reiterated a "sell (d)" rating on shares of Zillow Group in a research note on Wednesday, August 19th. Ten research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $49.81.

Zillow Group Price Performance

Zillow Group stock opened at $34.45 on Thursday. The business has a 50 day simple moving average of $31.82 and a 200 day simple moving average of $38.87. The company has a market capitalization of $7.75 billion, a PE ratio of 156.60, a price-to-earnings-growth ratio of 1.34 and a beta of 1.95. Zillow Group has a one year low of $27.25 and a one year high of $74.80.

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 analysts' consensus estimates of $0.60 by ($0.05). Zillow Group had a net margin of 1.96% and a return on equity of 2.32%. The company had revenue of $724.00 million during the quarter, compared to the consensus estimate of $753.66 million. During the same quarter last year, the company earned $0.44 earnings per share. The business's revenue was up 7.1% on a year-over-year basis. Equities analysts anticipate that Zillow Group will post 0.91 earnings per share for the current fiscal year.

Insider Transactions at Zillow Group

In other Zillow Group news, CTO David Beitel sold 1,798 shares of the company's stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $34.24, for a total transaction of $61,563.52. Following the transaction, the chief technology officer owned 133,013 shares of the company's stock, valued at approximately $4,554,365.12. This represents a 1.33% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Errol Samuelson sold 3,154 shares of the stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $34.24, for a total value of $107,992.96. Following the completion of the transaction, the insider owned 130,885 shares in the company, valued at $4,481,502.40. The trade was a 2.35% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 38,539 shares of company stock worth $1,323,800 over the last ninety days. 29.88% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Zillow Group

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

Key Headlines Impacting Zillow Group

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

• Positive Sentiment: Rentals helped offset weakness in home sales: third-quarter revenue grew 7.1% year over year to $724 million, and earnings rose to $0.55 per share from $0.44 a year earlier. Zillow Revenue Rises as Rentals Help Offset Weak Market for Home Sales
• Neutral Sentiment: Despite cutting its price target from $48 to $42, KeyCorp retained an “overweight” rating; RBC also lowered its target, from $55 to $45, while keeping an “outperform” rating. Both targets remain above the share price cited in the coverage. KeyCorp Issues Pessimistic Forecast for Zillow Group RBC analyst rating
• Negative Sentiment: Zillow missed Q3 consensus estimates: EPS was $0.55 versus $0.60 expected, and revenue was $724 million versus about $754 million expected. The shortfall may weigh on sentiment despite growth from a year earlier. Zillow Group Misses Q3 Earnings and Revenue Estimates
• Negative Sentiment: Management described housing conditions as exceptionally challenging, with weak home-sale activity. The combination of a tough market and analyst target reductions reinforces concerns about near-term growth and valuation. Zillow Group Stock Sees Modest Fair Value Cut As Analysts Turn More Cautious

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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