Zillow Group (NASDAQ:ZG) Posts Earnings Results, Misses Expectations By $0.38 EPS

Key Points

• Zillow reported quarterly EPS of $0.22, missing analysts’ consensus estimate of $0.60 by $0.38; net margin was 1.96%.
• Shares rose 9.9% on Wednesday to $34.45, despite the earnings shortfall.
• Analyst sentiment is mixed but averages to a Hold rating, with a consensus price target of $50.33.

Zillow Group (NASDAQ:ZG - Get Free Report) issued its quarterly earnings data on Wednesday. The technology company reported $0.22 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.60 by ($0.38), Zacks reports. Zillow Group had a return on equity of 2.32% and a net margin of 1.96%.

Zillow Group Stock Up 9.9%

Shares of NASDAQ ZG traded up $3.10 during trading hours on Wednesday, reaching $34.45. 2,882,416 shares of the stock traded hands, compared to its average volume of 1,162,557. The company's 50-day simple moving average is $31.87 and its two-hundred day simple moving average is $39.03. The company has a market capitalization of $7.75 billion, a P/E ratio of 156.60, a price-to-earnings-growth ratio of 1.40 and a beta of 1.95. Zillow Group has a 52-week low of $27.25 and a 52-week high of $74.80.

Insiders Place Their Bets

In other Zillow Group news, insider Dan Spaulding sold 3,169 shares of Zillow Group stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $35.37, for a total transaction of $112,087.53. Following the transaction, the insider directly owned 44,561 shares of the company's stock, valued at approximately $1,576,122.57. This trade represents a 6.64% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Jeremy Wacksman sold 9,339 shares of the business's stock in a transaction that occurred on Monday, August 17th. The stock was 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 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 ownership of the stock. 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 valued at $1,323,800 over the last 90 days. Company insiders own 29.88% of the company's stock.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on ZG shares. Zacks Research cut Zillow Group from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 4th. Citizens Jmp dropped their price target on Zillow Group from $75.00 to $46.00 and set a "market outperform" rating for the company in a research report on Friday, August 7th. Canaccord Genuity Group dropped their price target on Zillow Group from $52.00 to $40.00 and set a "hold" rating for the company in a research report on Thursday, August 6th. Evercore lowered Zillow Group from an "outperform" rating to an "in-line" rating and set a $40.00 price objective for the company. in a report on Thursday, August 6th. Finally, KeyCorp decreased their price objective 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. Ten analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Zillow Group presently has an average rating of "Hold" and a consensus target price of $50.33.

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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