Zillow Group (NASDAQ:ZG) Price Target Cut to $40.00 by Analysts at Citizens Jmp

Key Points

• Citizens JMP lowered Zillow Group’s price target from $46 to $40 but maintained a “market outperform” rating; the new target implies 26.1% upside from the prior close.
• Analyst sentiment is mixed: MarketBeat reports an average “Hold” rating and $49.52 average price target, with 10 Buy, 11 Hold, and 2 Sell ratings.
• Zillow’s latest quarter showed 7.1% year-over-year revenue growth, but EPS of $0.55 and revenue of $724 million both missed analyst estimates. Weak housing activity may also weigh on transactions-related business.

Zillow Group (NASDAQ:ZG - Get Free Report) had its price objective lowered by research analysts at Citizens Jmp from $46.00 to $40.00 in a research report issued to clients and investors on Thursday, Benzinga reports. The brokerage currently has a "market outperform" rating on the technology company's stock. Citizens Jmp's price objective indicates a potential upside of 26.10% from the company's previous close.

A number of other equities analysts have also issued reports on ZG. Canaccord Genuity Group reduced their price target 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. Deutsche Bank Aktiengesellschaft set a $80.00 price objective on shares of Zillow Group in a report on Monday, August 24th. Citigroup cut 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. DA Davidson reduced their target price on shares of Zillow Group from $60.00 to $50.00 and set a "buy" rating for the company in a report on Thursday, August 6th. Finally, JPMorgan Chase & Co. decreased their target price on shares of Zillow Group from $76.00 to $62.00 and set an "overweight" rating for the company in a research report on Tuesday, August 11th. Ten investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $49.52.

Zillow Group Stock Performance

Zillow Group stock opened at $31.72 on Thursday. The stock has a market cap of $7.13 billion, a PE ratio of 141.74, a price-to-earnings-growth ratio of 1.34 and a beta of 1.95. The stock has a 50-day moving average of $31.82 and a two-hundred day moving average of $38.87. 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 issued its quarterly earnings results on Wednesday, November 4th. The technology company reported $0.55 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.60 by ($0.05). The company had revenue of $724.00 million for the quarter, compared to analyst estimates of $753.66 million. Zillow Group had a net margin of 1.96% and a return on equity of 2.32%. The company's revenue for the quarter was up 7.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.44 EPS. As a group, sell-side analysts predict that Zillow Group will post 0.91 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Dan Spaulding sold 3,169 shares of the stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $35.37, for a total transaction of $112,087.53. Following the sale, the insider directly owned 44,561 shares of the company's stock, valued at $1,576,122.57. This represents a 6.64% decrease in their position. The transaction was disclosed in a legal 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, CTO David Beitel sold 1,798 shares of the stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $34.24, for a total transaction of $61,563.52. Following the sale, the chief technology officer directly owned 133,013 shares in the company, valued at approximately $4,554,365.12. The trade was a 1.33% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 38,539 shares of company stock valued at $1,323,800. Insiders own 29.88% of the company's stock.

Hedge Funds Weigh In On Zillow Group

A number of hedge funds have recently bought and sold shares of the business. Fulcrum Asset Management LLP purchased a new stake in shares of Zillow Group during the third quarter worth about $399,000. Brighton Jones LLC acquired a new position in shares of Zillow Group during the 3rd quarter worth about $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 worth $61,000 after purchasing an additional 1,562 shares during the last quarter. Signaturefd LLC purchased a new position in Zillow Group in the 3rd quarter valued at about $154,000. Finally, One Wealth Capital Management LLC purchased a new position in Zillow Group in the 3rd quarter valued at about $216,000. Hedge funds and other institutional investors own 20.32% of the company's stock.

Key Zillow Group News

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

• Positive Sentiment: Third-quarter revenue rose 7% year over year, with the rentals business helping cushion softness in home sales. Read article
• Negative Sentiment: Q3 adjusted earnings of $0.55 per share fell short of the $0.60 consensus, while revenue of $724 million missed estimates of about $754 million. The earnings and sales shortfalls weighed on the outlook despite year-over-year growth. Read article
• Negative Sentiment: Cantor Fitzgerald cut its price target to $26 from $32 and assigned a neutral rating, signaling reduced confidence in the shares. Read article
• Negative Sentiment: Housing activity remains weak: newly pending listings fell 16.8% year over year in October, the steepest decline since August 2023, while Zillow’s preliminary existing-home sales measure dropped 8.7%. That softness could constrain transactions-related business. Read article

Zillow Group Company Profile

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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