Barclays Has Lowered Expectations for Zillow Group (NASDAQ:ZG) Stock Price

Key Points

• Barclays cut its price target on Zillow from $72 to $66 and kept an "equal weight" rating, with the $66 target implying roughly a 39.9% upside from the prior close.
• Q4 results missed EPS expectations (reported $0.01 vs. $0.42 estimate) while revenue of $654M slightly exceeded estimates and management guided Q1 revenue of ~$700–$710M, and the miss helped drive the stock down about 13%.
• Analyst coverage is mixed—16 Buys, 12 Holds and 1 Sell—producing a consensus "Moderate Buy" and a $83.38 target, but several firms trimmed targets or moved to neutral after the earnings release, weighing on the stock.

Zillow Group (NASDAQ:ZG - Get Free Report) had its price target reduced by investment analysts at Barclays from $72.00 to $66.00 in a research note issued on Wednesday,Benzinga reports. The firm presently has an "equal weight" rating on the technology company's stock. Barclays's price target indicates a potential upside of 39.89% from the stock's previous close.

Several other research analysts have also recently issued reports on ZG. Piper Sandler reissued an "overweight" rating and set a $85.00 price objective (down previously from $94.00) on shares of Zillow Group in a research report on Friday, October 31st. Wells Fargo & Company dropped their price objective on shares of Zillow Group from $73.00 to $61.00 and set an "equal weight" rating for the company in a report on Tuesday. The Goldman Sachs Group restated a "neutral" rating and set a $78.00 price target on shares of Zillow Group in a report on Friday, October 31st. Weiss Ratings reissued a "sell (d-)" rating on shares of Zillow Group in a research note on Wednesday, January 21st. Finally, JPMorgan Chase & Co. lifted their price objective on shares of Zillow Group from $94.00 to $95.00 and gave the company an "overweight" rating in a report on Friday, October 31st. Sixteen equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $83.38.

Zillow Group Trading Down 13.3%

NASDAQ ZG opened at $47.18 on Wednesday. The company has a market cap of $11.42 billion, a PE ratio of -338.78, a PEG ratio of 3.13 and a beta of 2.04. The stock has a 50 day moving average of $66.55 and a 200-day moving average of $72.45. Zillow Group has a 12 month low of $47.47 and a 12 month high of $90.22.

Zillow Group (NASDAQ:ZG - Get Free Report) last released its quarterly earnings results on Tuesday, February 10th. The technology company reported $0.01 EPS for the quarter, missing the consensus estimate of $0.42 by ($0.41). Zillow Group had a negative net margin of 1.29% and a negative return on equity of 0.56%. The business had revenue of $654.00 million during the quarter, compared to analyst estimates of $650.40 million. During the same quarter last year, the company posted $0.27 earnings per share. The company's revenue was up 18.1% on a year-over-year basis. As a group, sell-side analysts predict that Zillow Group will post 0.32 EPS for the current fiscal year.

Insider Buying and Selling at Zillow Group

In other Zillow Group news, General Counsel Bradley D. Owens sold 2,722 shares of the business's stock in a transaction on Wednesday, November 19th. The stock was sold at an average price of $67.41, for a total value of $183,490.02. Following the transaction, the general counsel owned 37,974 shares of the company's stock, valued at approximately $2,559,827.34. The trade was a 6.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Dan Spaulding sold 5,455 shares of the firm's stock in a transaction that occurred on Friday, November 14th. The stock was sold at an average price of $69.40, for a total transaction of $378,577.00. Following the sale, the insider owned 50,342 shares of the company's stock, valued at approximately $3,493,734.80. The trade was a 9.78% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 28,103 shares of company stock worth $1,956,109 over the last 90 days. 17.14% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Zillow Group

Institutional investors have recently made changes to their positions in the stock. Vanguard Personalized Indexing Management LLC grew its holdings in Zillow Group by 3.0% in the second quarter. Vanguard Personalized Indexing Management LLC now owns 4,550 shares of the technology company's stock worth $312,000 after purchasing an additional 131 shares during the period. DoubleLine ETF Adviser LP boosted its position in shares of Zillow Group by 4.9% in the 3rd quarter. DoubleLine ETF Adviser LP now owns 3,214 shares of the technology company's stock worth $239,000 after purchasing an additional 150 shares in the last quarter. Wealth Enhancement Advisory Services LLC grew its stake in shares of Zillow Group by 4.5% in the 3rd quarter. Wealth Enhancement Advisory Services LLC now owns 3,657 shares of the technology company's stock worth $256,000 after buying an additional 156 shares during the last quarter. Signaturefd LLC increased its position in Zillow Group by 10.4% during the 4th quarter. Signaturefd LLC now owns 1,711 shares of the technology company's stock valued at $117,000 after buying an additional 161 shares in the last quarter. Finally, Smartleaf Asset Management LLC increased its position in Zillow Group by 78.9% during the 3rd quarter. Smartleaf Asset Management LLC now owns 424 shares of the technology company's stock valued at $33,000 after buying an additional 187 shares in the last quarter. Institutional investors own 20.32% of the company's stock.

Zillow Group News Roundup

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

• Positive Sentiment: Revenue and profit trends were constructive: Zillow reported year-over-year revenue growth (Q4 revenue ~ $654M) and swung to a small quarterly profit. This supports the case for continued top-line momentum as the housing market improves. WSJ: Zillow Swings to Fourth-Quarter Profit
• Positive Sentiment: Management issued Q1 revenue guidance of roughly $700–$710M, above Street consensus (~$691M), which could underpin near-term revenue expectations. Zillow press release
• Positive Sentiment: Some analysts and outlets remain constructive on longer-term growth prospects (Bernstein/Baron's commentary highlights continued upside if housing activity recovers). Globe & Mail: Bernstein Buy Barron's: Why Wall Street Still Likes Zillow
• Neutral Sentiment: Detailed analyses and the full earnings-call transcript are available for investors who want to dig into segment-level trends and management commentary. Earnings call transcript Zacks analysis
• Negative Sentiment: EPS materially missed consensus (company reported well below Street estimates), which was the primary trigger for the stock decline and investor concern. Yahoo: Zillow stock falls after Q4 earnings miss
• Negative Sentiment: Several sell-side firms trimmed price targets and/or moved to neutral/equal-weight after the print (Cantor Fitzgerald to $56 neutral; Wells Fargo to $61 equal weight), adding downward pressure on the stock. Benzinga: Cantor Fitzgerald PT cut Benzinga: Wells Fargo PT cut

Zillow Group Company Profile

Zillow Group NASDAQ: ZG is a U.S.-based online real estate marketplace that connects consumers, real estate professionals and mortgage lenders through a suite of digital products and advertising services. Founded in 2006 by Rich Barton and Lloyd Frink and headquartered in Seattle, Washington, the company operates a portfolio of consumer-facing brands and tools designed to simplify home search, rental discovery, valuation and mortgage shopping.

Zillow's core products include its consumer websites and mobile apps that list homes for sale and rent, the Zestimate automated home value estimate, and marketplaces that connect buyers and renters with agents and lenders.

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