Technology Crossover Management XI Ltd. Takes Position in Zillow Group, Inc. $ZG

Key Points

• Technology Crossover Management XI Ltd. acquired 2.34 million Zillow shares worth approximately $73.7 million, making ZG its second-largest holding and representing about 1.02% of the company.
• Zillow reported a quarterly earnings beat, with EPS of $0.52 versus the $0.44 consensus and revenue up 17.9% year over year to $772 million. Rising rents may support marketplace demand, although increased rental concessions signal continued pressure.
• Analyst sentiment remains cautious: Zillow has a consensus “Hold” rating, with several firms recently cutting price targets. The stock opened at $35.28, well below the consensus target of $52.29, while executives’ recent share sales were conducted under pre-arranged plans mainly to cover tax obligations.

Technology Crossover Management XI Ltd. bought a new stake in Zillow Group, Inc. (NASDAQ:ZG - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor bought 2,338,036 shares of the technology company's stock, valued at approximately $73,694,895,000. Zillow Group makes up 13.8% of Technology Crossover Management XI Ltd.'s holdings, making the stock its 2nd biggest position. Technology Crossover Management XI Ltd. owned approximately 1.02% of Zillow Group at the end of the most recent quarter.

A number of other large investors have also recently added to or reduced their stakes in ZG. PNC Financial Services Group Inc. raised its stake in shares of Zillow Group by 10.1% in the 4th quarter. PNC Financial Services Group Inc. now owns 2,156 shares of the technology company's stock valued at $147,000 after acquiring an additional 198 shares during the period. Lido Advisors LLC boosted its position in shares of Zillow Group by 0.4% during the 4th quarter. Lido Advisors LLC now owns 50,846 shares of the technology company's stock worth $3,627,000 after purchasing an additional 215 shares during the period. Royal London Asset Management Ltd. increased its holdings in Zillow Group by 1.4% in the 2nd quarter. Royal London Asset Management Ltd. now owns 18,217 shares of the technology company's stock valued at $1,248,000 after purchasing an additional 247 shares during the last quarter. Mackenzie Financial Corp raised its position in Zillow Group by 8.5% in the third quarter. Mackenzie Financial Corp now owns 3,301 shares of the technology company's stock valued at $246,000 after purchasing an additional 258 shares during the period. Finally, California State Teachers Retirement System raised its position in Zillow Group by 9.2% in the second quarter. California State Teachers Retirement System now owns 3,147 shares of the technology company's stock valued at $216,000 after purchasing an additional 264 shares during the period. 20.32% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Zillow Group

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

• Positive Sentiment: U.S. asking rents rose to $1,962 in July, increasing 2.3% from a year earlier—the fastest growth in more than a year. Strong rental demand could support Zillow’s traffic, advertising activity and rental-related revenue. Rents near $2,000, rising at the fastest pace in over a year
• Neutral Sentiment: CEO Jeremy Wacksman, CFO Jeremy Hofmann, CAO Jennifer Rock, CTO David Beitel and other insiders sold shares worth roughly $1.5 million in aggregate. The transactions were made under pre-arranged trading plans or to cover tax withholding on vested equity awards, making them a relatively weak signal of deteriorating management confidence. Zillow Group insider filings
• Negative Sentiment: Rental concessions increased to 39.8% of Zillow listings in July from 35.9% a year earlier. Although rent growth remains positive, the higher use of concessions suggests landlords still face competitive pressure, which could temper the benefit to Zillow’s rental marketplace.
• Negative Sentiment: Analysts have recently lowered several price targets, including Wells Fargo’s reduction to $35 and Canaccord Genuity’s reduction to $40. Zillow Group’s consensus rating remains “Hold,” despite its latest quarterly earnings beat of $0.52 per share versus the $0.44 estimate. Zillow Group analyst and stock information

Zillow Group Stock Up 2.8%

NASDAQ:ZG opened at $35.28 on Wednesday. The company has a market capitalization of $7.93 billion, a PE ratio of 160.37, a P/E/G ratio of 1.53 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. The stock's 50 day moving average price is $33.01 and its 200 day moving average price is $39.80.

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

Insider Buying and Selling

In other Zillow Group news, CEO Jeremy Wacksman sold 9,339 shares of the business's stock in a transaction 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 sale, the chief executive officer directly owned 138,574 shares in the company, valued at approximately $4,736,459.32. The trade was a 6.31% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed 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, CFO Jeremy Hofmann sold 5,661 shares of the stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $34.18, for a total transaction of $193,492.98. Following the completion of the sale, the chief financial officer owned 59,144 shares in the company, valued at $2,021,541.92. This represents a 8.74% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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 sold a total of 46,423 shares of company stock valued at $1,612,148 in the last 90 days. 29.88% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

Several equities analysts have weighed in on ZG shares. The Goldman Sachs Group dropped their target price on Zillow Group from $53.00 to $40.00 and set a "neutral" rating for the company in a research report on Friday, June 12th. Evercore set a $40.00 price objective on shares of Zillow Group and gave the company an "in-line" rating in a research note on Thursday, August 6th. Barclays decreased their price target on shares of Zillow Group from $58.00 to $54.00 and set an "equal weight" rating for the company in a research report on Friday, May 8th. Piper Sandler cut their price objective on Zillow Group from $55.00 to $46.00 and set an "overweight" rating on the stock in a research report on Friday, August 7th. Finally, Canaccord Genuity Group reduced their price objective on Zillow Group from $52.00 to $40.00 and set a "hold" 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 issued a Sell rating to the stock. According to MarketBeat, Zillow Group has a consensus rating of "Hold" and a consensus price target of $52.29.

Zillow Group 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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