Kahn Brothers Group Inc. Buys Shares of 545,212 Zillow Group, Inc. $ZG

Key Points

• Kahn Brothers Group initiated a 545,212-share Zillow Group position during the second quarter, making ZG its largest holding at roughly 45.2% of its portfolio and about 0.24% of Zillow’s outstanding shares.
• Zillow reported quarterly earnings of $0.52 per share, beating estimates by $0.08, while revenue rose 17.9% year over year to $772 million. Shares opened at $36.35, compared with a consensus analyst price target of $53.14 and an overall “Hold” rating.
• Several analysts recently lowered their price targets, although most maintained Buy, Overweight, or Outperform ratings. Insiders sold shares primarily to cover tax obligations, with 37,351 shares sold for about $1.28 million over the past three months.

Kahn Brothers Group Inc. bought a new stake in Zillow Group, Inc. (NASDAQ:ZG - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm bought 545,212 shares of the technology company's stock, valued at approximately $22,560,872,000. Zillow Group comprises about 45.2% of Kahn Brothers Group Inc.'s investment portfolio, making the stock its biggest position. Kahn Brothers Group Inc. owned approximately 0.24% of Zillow Group at the end of the most recent reporting period.

Several other institutional investors also recently modified their holdings of the business. Technology Crossover Management XI Ltd. acquired a new position in Zillow Group in the second quarter valued at approximately $73,694,895,000. Norges Bank acquired a new stake in Zillow Group during the 4th quarter worth $152,050,000. Independent Franchise Partners LLP grew its holdings in Zillow Group by 1.1% during the 4th quarter. Independent Franchise Partners LLP now owns 2,024,556 shares of the technology company's stock worth $138,135,000 after acquiring an additional 21,862 shares during the period. Tiger Global Management LLC raised its position in shares of Zillow Group by 30.7% during the 4th quarter. Tiger Global Management LLC now owns 1,023,733 shares of the technology company's stock valued at $69,849,000 after acquiring an additional 240,690 shares during the last quarter. Finally, UBS Group AG raised its position in shares of Zillow Group by 44.5% during the 4th quarter. UBS Group AG now owns 1,018,448 shares of the technology company's stock valued at $69,489,000 after acquiring an additional 313,643 shares during the last quarter. Institutional investors and hedge funds own 20.32% of the company's stock.

Zillow Group Stock Performance

Shares of NASDAQ:ZG opened at $36.35 on Friday. The company has a 50 day moving average price of $33.56 and a two-hundred day moving average price of $38.71. The company has a market capitalization of $8.17 billion, a PE ratio of 165.23, a PEG ratio of 1.57 and a beta of 1.95. Zillow Group, Inc. has a 52 week low of $29.03 and a 52 week high of $90.22.

Zillow Group (NASDAQ:ZG - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The technology company reported $0.52 earnings per share for the quarter, topping analysts' consensus estimates of $0.44 by $0.08. Zillow Group had a net margin of 1.96% and a return on equity of 2.32%. The company had revenue of $772.00 million for the quarter, compared to analysts' expectations of $758.25 million. During the same period last year, the firm posted $0.40 earnings per share. The business's quarterly revenue was up 17.9% compared to the same quarter last year. On average, sell-side analysts forecast that Zillow Group, Inc. will post 0.89 earnings per share for the current year.

Insider Buying and Selling at Zillow Group

In other Zillow Group news, insider Errol G. Samuelson sold 3,154 shares of the business's stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $34.24, for a total value of $107,992.96. Following the completion of the transaction, the insider directly owned 130,885 shares of the company's stock, valued at approximately $4,481,502.40. The trade was a 2.35% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 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 stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $34.18, for a total value of $193,492.98. Following the completion of the sale, 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 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 a total of 37,351 shares of company stock worth $1,280,657 in the last three months. 29.88% of the stock is owned by insiders.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on ZG shares. JPMorgan Chase & Co. cut their price target on Zillow Group from $76.00 to $62.00 and set an "overweight" rating on the stock in a research note on Tuesday, August 11th. Citigroup decreased their price objective on Zillow Group from $68.00 to $52.00 and set a "buy" rating for the company in a research note on Thursday, August 6th. Mizuho dropped their price objective on Zillow Group from $65.00 to $53.00 and set a "neutral" rating for the company in a report on Thursday, May 7th. Cantor Fitzgerald cut their target price on Zillow Group from $34.00 to $32.00 and set a "neutral" rating on the stock in a research note on Thursday, August 6th. Finally, Royal Bank Of Canada cut their target price on Zillow Group from $70.00 to $55.00 and set an "outperform" rating on the stock in a research note on Thursday, August 6th. Eleven research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $53.14.

About Zillow Group

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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