Zillow Group (NASDAQ:ZG) Stock Price Target Cut by Canaccord Genuity Group

Key Points

• Canaccord Genuity cut Zillow Group’s price target from $40 to $34 and maintained a Hold rating; the new target implies about 8.9% upside from the current share price.
• Zillow reported quarterly revenue of $724 million, up 7.1% year over year, but below expectations; EPS of $0.55 also missed analysts’ $0.60 estimate.
• Analyst opinion remains mixed but leans to Hold: 10 analysts rate the stock Buy, 11 Hold, and two Sell, with a consensus price target of $48.43.

Zillow Group (NASDAQ:ZG - Get Free Report) had its target price dropped by investment analysts at Canaccord Genuity Group from $40.00 to $34.00 in a note issued to investors on Thursday, Benzinga reports. The firm presently has a "hold" rating on the technology company's stock. Canaccord Genuity Group's target price would indicate a potential upside of 8.94% from the company's current price.

Other research analysts have also issued reports about the company. Cantor Fitzgerald cut their price objective on Zillow Group from $32.00 to $26.00 and set a "neutral" rating on the stock in a research report on Thursday. DA Davidson decreased their target price on Zillow Group from $60.00 to $50.00 and set a "buy" rating for the company in a research report on Thursday, August 6th. Citigroup decreased their target price on Zillow Group from $68.00 to $52.00 and set a "buy" rating for the company in a research report on Thursday, August 6th. Deutsche Bank Aktiengesellschaft set a $80.00 target price on Zillow Group in a research note on Monday, August 24th. Finally, Susquehanna reiterated a "neutral" rating on shares of Zillow Group in a report on Friday. Ten investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, Zillow Group presently has a consensus rating of "Hold" and a consensus target price of $48.43.

Zillow Group Trading Down 9.4%

Shares of ZG stock opened at $31.21 on Thursday. The company's fifty day simple moving average is $31.72 and its 200-day simple moving average is $38.68. Zillow Group has a 52 week low of $27.25 and a 52 week high of $74.80. The company has a market cap of $7.02 billion, a PE ratio of -60.02, a P/E/G ratio of 1.47 and a beta of 1.95.

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 positive return on equity of 3.18% and a negative net margin of 3.95%. The business had revenue of $724.00 million for the quarter, compared to analysts' expectations of $753.66 million. During the same period last year, the company posted $0.44 earnings per share. The firm's revenue for the quarter was up 7.1% on a year-over-year basis. Equities research analysts expect that Zillow Group will post 0.91 EPS for the current fiscal year.

Insider Buying and Selling at Zillow Group

In related news, CEO Jeremy Wacksman sold 9,339 shares of the firm's stock in a transaction on Monday, August 17th. The shares were sold at an average price of $34.18, for a total transaction of $319,207.02. Following the completion of the sale, the chief executive officer directly owned 138,574 shares of the company's stock, valued at approximately $4,736,459.32. This trade represents a 6.31% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through 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, insider Dan Spaulding sold 3,169 shares of Zillow Group stock in a transaction 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 sale, the insider directly owned 44,561 shares in the company, valued at $1,576,122.57. This trade represents a 6.64% decrease in their position. 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 sold 38,539 shares of company stock worth $1,323,800. 29.88% of the stock is currently owned by insiders.

Institutional Trading of Zillow Group

Several large investors have recently modified their holdings of the business. Ninety One SA Pty Ltd acquired a new stake in shares of Zillow Group during the third quarter worth approximately $26,000. Integrated Wealth Concepts LLC bought a new stake in shares of Zillow Group in the second quarter worth $29,000. EverSource Wealth Advisors LLC raised its holdings in Zillow Group by 183.6% in the first quarter. EverSource Wealth Advisors LLC now owns 984 shares of the technology company's stock valued at $41,000 after acquiring an additional 637 shares in the last quarter. Fifth Third Bancorp raised its holdings in Zillow Group by 990.3% in the first quarter. Fifth Third Bancorp now owns 1,014 shares of the technology company's stock valued at $42,000 after acquiring an additional 921 shares in the last quarter. Finally, Parallel Advisors LLC raised its holdings in Zillow Group by 244.8% in the third 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 in the last quarter. 20.32% of the stock is currently owned by institutional investors and hedge funds.

Key Zillow Group News

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

• Positive Sentiment: Piper Sandler kept its “overweight” rating despite lowering its price target to $39 from $46. Citizens JMP also maintained “market outperform,” with a reduced $40 target. Both targets imply upside from the reference price. Piper Sandler rating Citizens JMP rating
• Neutral Sentiment: Revenue rose 7.1% year over year to $724 million, with rentals helping offset weak home-sales conditions. However, the result was below analysts’ $753.7 million estimate, and EPS of $0.55 also missed the $0.60 consensus. Zillow revenue and rentals Zillow Q3 results
• Negative Sentiment: Housing-market indicators worsened: newly pending listings fell 16.8% year over year in October, while Zillow’s preliminary measure of existing home sales declined 8.7%. Fewer pending sales may weigh on Zillow’s transaction-related business. October Zillow Market Report
• Negative Sentiment: Several analysts lowered price targets after the results. Wells Fargo cut its target to $30 and kept an “equal weight” rating; Cantor Fitzgerald lowered its target to $26 and assigned “neutral”; Bernstein reduced its target to $34 while maintaining “market perform.” The broad pattern of target reductions reflects caution about Zillow’s outlook. Wells Fargo rating Cantor Fitzgerald rating

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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