Zillow Group, Inc. (NASDAQ:ZG) Stock Has Consensus Price Target of $48.14

Key Points

• Analysts have a consensus “Hold” rating on Zillow Group, with a 12-month average price target of $48.14; ratings include 10 buys, 11 holds, and 2 sells. Several firms recently cut their targets, reflecting mixed views.
• Zillow’s third-quarter results missed expectations: adjusted EPS was $0.55 versus $0.60 forecast, and revenue was $724 million versus about $754 million expected, despite 7.1% year-over-year revenue growth.
• Housing-market activity weakened in October, with newly pending listings down 16.8% year over year and Zillow’s preliminary existing-home sales measure down 8.7%, potentially limiting marketplace and related revenue opportunities.

Shares of Zillow Group, Inc. (NASDAQ:ZG - Get Free Report) have received a consensus rating of "Hold" from the twenty-three brokerages that are currently covering the firm, MarketBeat Ratings reports. Two research analysts have rated the stock with a sell rating, eleven have given a hold rating and ten have issued a buy rating on the company. The average 12 month target price among analysts that have issued ratings on the stock in the last year is $48.14.

ZG has been the topic of several analyst reports. JPMorgan Chase & Co. dropped 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. Cantor Fitzgerald cut their target price on shares of Zillow Group from $32.00 to $26.00 and set a "neutral" rating on the stock in a report on Thursday. UBS Group reduced their price objective on Zillow Group from $48.00 to $43.00 and set a "buy" rating on the stock in a research note on Thursday. DA Davidson dropped their price objective on Zillow Group from $60.00 to $50.00 and set a "buy" rating on the stock in a research note on Thursday, August 6th. Finally, Sanford C. Bernstein lowered their target price on shares of Zillow Group from $38.00 to $34.00 and set a "market perform" rating on the stock in a research note on Thursday.

Zillow Group News Roundup

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

• Neutral Sentiment: Zillow said its COO and CFO will take part in a fireside chat at the RBC Capital Markets technology conference on Nov. 17; the announcement does not include new financial guidance. Conference announcement
• Neutral Sentiment: Although UBS retained a Buy rating and Canaccord a Hold, both lowered their price targets—to $43 from $48 and $34 from $40, respectively. Other firms also cut targets, with ratings ranging from Overweight to Equal Weight and Neutral, reflecting mixed views. Read More. · Read More.
• Negative Sentiment: Zillow’s third-quarter results missed estimates: adjusted earnings were $0.55 per share versus $0.60 expected, while revenue of $724 million came in below the roughly $754 million consensus. Revenue still rose 7.1% year over year, but the shortfall likely weighed on investor sentiment. Q3 results
• Negative Sentiment: Housing activity weakened in October: newly pending listings fell 16.8% year over year, the steepest decline since August 2023, and Zillow’s preliminary measure of existing-home sales dropped 8.7%. Softer transaction activity could constrain Zillow’s marketplace and related revenue opportunities. October housing market report

Insider Activity

In related news, CEO Jeremy Wacksman sold 9,339 shares of Zillow Group stock in a transaction dated 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 transaction, the chief executive officer directly owned 138,574 shares of the company's stock, valued at approximately $4,736,459.32. The trade was a 6.31% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 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, Director Erik C. Blachford sold 792 shares of the business's stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $35.71, for a total transaction of $28,282.32. Following the transaction, the director owned 34,160 shares of the company's stock, valued at $1,219,853.60. This represents a 2.27% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 38,539 shares of company stock worth $1,323,800. 29.88% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Russell Investments Group Ltd. grew its stake in shares of Zillow Group by 92.9% in the 3rd quarter. Russell Investments Group Ltd. now owns 149,517 shares of the technology company's stock valued at $4,142,000 after buying an additional 71,996 shares in the last quarter. Illinois Municipal Retirement Fund acquired a new stake in shares of Zillow Group during the third quarter worth $1,415,000. Fulcrum Asset Management LLP acquired a new stake in shares of Zillow Group in the 3rd quarter valued at approximately $399,000. Brighton Jones LLC acquired a new position in shares of Zillow Group in the 3rd quarter worth approximately $231,000. Finally, Parallel Advisors LLC lifted its stake in shares of 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 buying an additional 1,562 shares in the last quarter. Hedge funds and other institutional investors own 20.32% of the company's stock.

Zillow Group Trading Down 2.7%

NASDAQ:ZG opened at $30.36 on Friday. The firm has a market capitalization of $6.83 billion, a PE ratio of -58.38, a PEG ratio of 1.40 and a beta of 1.95. Zillow Group has a 1 year low of $27.25 and a 1 year high of $74.80. The firm's fifty day simple moving average is $31.60 and its 200 day simple moving average is $38.51.

Zillow Group (NASDAQ:ZG - Get Free Report) last released its quarterly earnings results on Wednesday, November 4th. The technology company reported $0.55 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.60 by ($0.05). Zillow Group had a net margin of 1.96% and a return on equity of 2.32%. The firm 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 firm earned $0.44 earnings per share. The business's revenue for the quarter was up 7.1% compared to the same quarter last year. As a group, analysts anticipate that Zillow Group will post 0.91 EPS for the current fiscal year.

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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