Virtu Financial LLC Invests $2.67 Million in Zillow Group, Inc. $Z

Key Points

• Virtu Financial LLC disclosed a new fourth-quarter stake in Zillow Group, buying 39,146 shares valued at about $2.67 million.
• Zillow reported stronger-than-expected quarterly results, with EPS of $0.53 beating estimates and revenue of $708 million slightly above forecasts.
• Investor sentiment is mixed: Zillow faces securities class-action litigation and multiple analysts have cut price targets, though the stock still carries a Moderate Buy consensus.

Virtu Financial LLC purchased a new stake in Zillow Group, Inc. (NASDAQ:Z - Free Report) in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund purchased 39,146 shares of the financial services provider's stock, valued at approximately $2,671,000.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Empowered Funds LLC lifted its holdings in shares of Zillow Group by 4.7% during the first quarter. Empowered Funds LLC now owns 3,822 shares of the financial services provider's stock worth $262,000 after buying an additional 171 shares in the last quarter. Intech Investment Management LLC grew its stake in shares of Zillow Group by 21.7% in the first quarter. Intech Investment Management LLC now owns 20,518 shares of the financial services provider's stock valued at $1,407,000 after acquiring an additional 3,653 shares in the last quarter. American Century Companies Inc. grew its stake in shares of Zillow Group by 1.6% in the second quarter. American Century Companies Inc. now owns 23,064 shares of the financial services provider's stock valued at $1,616,000 after acquiring an additional 362 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its position in Zillow Group by 186.3% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,678 shares of the financial services provider's stock worth $118,000 after acquiring an additional 1,092 shares during the period. Finally, First Trust Advisors LP increased its position in Zillow Group by 1,895.4% during the second quarter. First Trust Advisors LP now owns 128,362 shares of the financial services provider's stock worth $8,992,000 after acquiring an additional 121,929 shares during the period. 71.01% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling

In other news, General Counsel Bradley D. Owens sold 3,364 shares of the company's stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $37.23, for a total transaction of $125,241.72. Following the completion of the sale, the general counsel owned 65,245 shares of the company's stock, valued at approximately $2,429,071.35. This represents a 4.90% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 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, insider Dan Spaulding sold 3,078 shares of Zillow Group stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $37.40, for a total transaction of $115,117.20. Following the completion of the transaction, the insider directly owned 49,696 shares in the company, valued at $1,858,630.40. This trade represents a 5.83% 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. In the last ninety days, insiders sold 42,910 shares of company stock worth $1,605,732. 25.03% of the stock is owned by company insiders.

Key Headlines Impacting Zillow Group

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

• Positive Sentiment: Zillow also highlighted a favorable housing affordability trend, saying 74% of rental listings on Zillow in May were affordable to a median-income household, the highest share ever for that time of year, which could support engagement and renter demand. Article Title
• Neutral Sentiment: A Zacks note called Zillow a “strong growth stock,” but the item is promotional and did not add new fundamental information. Article Title
• Negative Sentiment: Several law firms said a securities class action has been filed against Zillow, alleging investor harm and violations of federal securities laws during the class period. Article Title
• Negative Sentiment: Additional notices say the lawsuit centers on an alleged anticompetitive agreement and related regulatory risks, raising the possibility of further legal and financial exposure for Zillow. Article Title

Zillow Group Stock Up 0.3%

Z stock opened at $32.11 on Friday. The company has a market cap of $7.35 billion, a PE ratio of 128.44, a price-to-earnings-growth ratio of 1.37 and a beta of 1.97. The business has a 50-day simple moving average of $39.02 and a 200 day simple moving average of $50.85. Zillow Group, Inc. has a 52 week low of $31.48 and a 52 week high of $93.88.

Zillow Group (NASDAQ:Z - Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The financial services provider reported $0.53 earnings per share for the quarter, topping the consensus estimate of $0.43 by $0.10. Zillow Group had a net margin of 2.27% and a return on equity of 1.41%. The business had revenue of $708.00 million during the quarter, compared to analysts' expectations of $705.10 million. On average, analysts anticipate that Zillow Group, Inc. will post 0.9 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several brokerages have weighed in on Z. Deutsche Bank Aktiengesellschaft dropped their price objective on shares of Zillow Group from $80.00 to $68.00 and set a "buy" rating for the company in a research note on Friday, May 8th. Zacks Research cut shares of Zillow Group from a "strong-buy" rating to a "hold" rating in a report on Thursday, June 4th. Keefe, Bruyette & Woods lowered their target price on shares of Zillow Group from $60.00 to $50.00 and set a "market perform" rating on the stock in a report on Thursday, May 7th. Royal Bank Of Canada cut their price target on Zillow Group from $95.00 to $70.00 and set an "outperform" rating for the company in a research note on Wednesday, June 10th. Finally, JPMorgan Chase & Co. reduced their price target on Zillow Group from $84.00 to $76.00 and set an "overweight" rating on the stock in a research report on Thursday, May 7th. Two investment analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $76.00.

Zillow Group Company Profile

Zillow Group, Inc is an online real estate marketplace company that operates a portfolio of consumer-facing websites and mobile apps designed to connect buyers, sellers, renters, homeowners and real estate professionals. The company's platforms aggregate property listings, rental listings, and related information to help users search for homes, estimate property values and connect with agents and service providers. Zillow generates revenue primarily through advertising and lead-generation services for real estate professionals, property managers and mortgage lenders.

Key products and services include the Zillow and Trulia consumer websites and apps, which provide searchable listings, photos, neighborhood data and the company's automated home valuation tool known as the “Zestimate.” Zillow also offers a rentals marketplace, a mortgage marketplace and tools for home buying and selling such as Zillow Premier Agent for agent advertising and leads, as well as ancillary services designed to support transactions, including closing and title-related offerings.

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