Zillow Group (NASDAQ:ZG) Stock Gets Price Target Cut from Piper Sandler

Key Points

• Piper Sandler cut Zillow Group’s price target from $46 to $39 but maintained an “overweight” rating, implying 24.78% upside from the previous close.
• Zillow shares fell 9.3% to $31.25 on Thursday. The company’s latest quarter missed expectations, with EPS of $0.55 versus $0.60 forecast and revenue of $724 million versus about $754 million expected, despite 7.1% year-over-year revenue growth.
• Analyst sentiment is mixed: Zillow has 10 Buy, 11 Hold, and 2 Sell ratings, with an average price target of $48.95.

Zillow Group (NASDAQ:ZG - Get Free Report) had its price objective dropped by Piper Sandler from $46.00 to $39.00 in a report issued on Thursday, Benzinga reports. The firm currently has an "overweight" rating on the technology company's stock. Piper Sandler's price objective would suggest a potential upside of 24.78% from the company's previous close.

Other equities analysts have also recently issued research reports about the stock. KeyCorp reduced their price target on shares of Zillow Group from $48.00 to $42.00 and set an "overweight" rating on the stock in a research report on Tuesday. Susquehanna lowered their price objective on Zillow Group from $50.00 to $38.00 and set a "neutral" rating for the company in a report on Thursday, August 6th. Deutsche Bank Aktiengesellschaft set a $80.00 price objective on Zillow Group in a report on Monday, August 24th. Citizens Jmp reduced their target price on Zillow Group from $46.00 to $40.00 and set a "market outperform" rating on the stock in a report on Thursday. Finally, JPMorgan Chase & Co. reduced their target price on Zillow Group from $76.00 to $62.00 and set an "overweight" rating on the stock in a report on Tuesday, August 11th. Ten equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $48.95.

Zillow Group Stock Down 9.3%

Shares of Zillow Group stock traded down $3.19 on Thursday, hitting $31.25. 680,786 shares of the company's stock traded hands, compared to its average volume of 1,162,028. Zillow Group has a 52-week low of $27.25 and a 52-week high of $74.80. The stock has a market cap of $7.03 billion, a P/E ratio of 142.05, a PEG ratio of 1.34 and a beta of 1.95. The firm's 50-day moving average is $31.82 and its 200 day moving average is $38.87.

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 during the quarter, compared to the consensus estimate of $753.66 million. Zillow Group had a return on equity of 2.32% and a net margin of 1.96%. The firm's quarterly revenue was up 7.1% on a year-over-year basis. During the same quarter last year, the firm posted $0.44 EPS. Equities research analysts forecast that Zillow Group will post 0.91 EPS for the current year.

Insider Transactions at Zillow Group

In other Zillow Group news, CEO Jeremy Wacksman sold 9,339 shares of the company's stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $34.18, for a total value of $319,207.02. Following the completion of the transaction, the chief executive officer owned 138,574 shares in the company, valued at approximately $4,736,459.32. This represents a 6.31% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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. Also, CFO Jeremy Hofmann sold 5,661 shares of the business's stock in a transaction on Monday, August 17th. The stock was sold at an average price of $34.18, for a total value of $193,492.98. Following the transaction, the chief financial officer owned 59,144 shares of the company's stock, valued at $2,021,541.92. This trade represents a 8.74% decrease in their position. The SEC filing for this sale provides additional information. 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 38,539 shares of company stock worth $1,323,800 in the last quarter. 29.88% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Zillow Group

Hedge funds have recently modified their holdings of the stock. Technology Crossover Management XI Ltd. bought a new position in Zillow Group in the 2nd quarter valued at $73,694,895. Kahn Brothers Group Inc. acquired a new position in Zillow Group in the second quarter worth $37,265,000. Assenagon Asset Management S.A. grew its holdings in shares of Zillow Group by 724.4% during the third quarter. Assenagon Asset Management S.A. now owns 406,398 shares of the technology company's stock worth $11,257,000 after purchasing an additional 357,104 shares during the last quarter. Hsbc Holdings PLC grew its holdings in shares of Zillow Group by 1,616.8% during the first quarter. Hsbc Holdings PLC now owns 135,352 shares of the technology company's stock worth $5,602,000 after purchasing an additional 127,468 shares during the last quarter. Finally, Quantinno Capital Management LP grew its holdings in shares of Zillow Group by 106.6% during the first quarter. Quantinno Capital Management LP now owns 176,052 shares of the technology company's stock worth $7,287,000 after purchasing an additional 90,858 shares during the last quarter. 20.32% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about 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

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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