Zillow Group, Inc. $Z Shares Newly Bought by Compass Financial Management LLC

Key Points

• Compass Financial Management opened a new Zillow position, acquiring 46,385 shares valued at approximately $1.26 million in the third quarter.
• Institutional investors own about 71% of Zillow’s shares, with several funds increasing holdings; insiders have sold 38,539 shares worth roughly $1.32 million in the past 90 days, mostly to cover tax withholding on vested equity awards.
• Zillow’s latest quarter fell short of expectations, reporting EPS of $0.55 versus $0.58 expected and revenue of $724 million versus about $754 million expected. Analysts’ consensus rating is Hold, with an average price target of $57.71.

Compass Financial Management LLC acquired a new position in shares of Zillow Group, Inc. (NASDAQ:Z - Free Report) in the 3rd quarter, according to the company in its most recent filing with the SEC. The fund acquired 46,385 shares of the financial services provider's stock, valued at approximately $1,258,000.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. Tiger Global Management LLC raised its stake in Zillow Group by 21.7% in the first quarter. Tiger Global Management LLC now owns 7,368,957 shares of the financial services provider's stock valued at $304,927,000 after buying an additional 1,312,000 shares during the last quarter. Dimensional Fund Advisors LP increased its holdings in shares of Zillow Group by 21.8% during the first quarter. Dimensional Fund Advisors LP now owns 1,896,206 shares of the financial services provider's stock valued at $78,461,000 after acquiring an additional 338,803 shares in the last quarter. Quantinno Capital Management LP increased its holdings in shares of Zillow Group by 455.6% during the first quarter. Quantinno Capital Management LP now owns 641,618 shares of the financial services provider's stock valued at $26,550,000 after acquiring an additional 526,142 shares in the last quarter. Swiss National Bank raised its position in shares of Zillow Group by 7.2% in the 1st quarter. Swiss National Bank now owns 491,834 shares of the financial services provider's stock valued at $20,352,000 after purchasing an additional 33,200 shares during the last quarter. Finally, Hsbc Holdings PLC raised its position in shares of Zillow Group by 199.9% in the 1st quarter. Hsbc Holdings PLC now owns 439,222 shares of the financial services provider's stock valued at $18,182,000 after purchasing an additional 292,760 shares during the last quarter. Hedge funds and other institutional investors own 71.01% of the company's stock.

Insiders Place Their Bets

In other news, CTO David A. Beitel sold 1,798 shares of the firm's stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $34.24, for a total transaction of $61,563.52. Following the sale, the chief technology officer owned 133,013 shares of the company's stock, valued at approximately $4,554,365.12. This trade represents a 1.33% decrease in their position. The sale 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, insider Errol G. Samuelson sold 3,154 shares of the company's stock in a transaction that occurred on Thursday, August 13th. The shares were 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 $4,481,502.40. This trade represents a 2.35% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 38,539 shares of company stock worth $1,323,800. Corporate insiders own 25.03% of the company's stock.

Analysts Set New Price Targets

A number of research firms recently commented on Z. Sanford C. Bernstein downgraded Zillow Group from a "strong-buy" rating to a "hold" rating in a report on Thursday, August 6th. Morgan Stanley cut their price target on shares of Zillow Group from $60.00 to $35.00 and set an "equal weight" rating on the stock in a report on Tuesday, October 13th. Weiss Ratings reissued a "sell (d)" rating on shares of Zillow Group in a research report on Wednesday, August 19th. Keefe, Bruyette & Woods reduced their price target on shares of Zillow Group from $37.00 to $34.00 and set a "market perform" rating for the company in a research report on Friday, August 7th. Finally, Jefferies Financial Group decreased their price objective on shares of Zillow Group from $75.00 to $60.00 and set a "buy" rating for the company in a research note on Tuesday, July 14th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $57.71.

Zillow Group Trading Down 10.6%

Shares of NASDAQ Z opened at $30.29 on Friday. The stock has a market cap of $6.81 billion, a PE ratio of -58.25, a P/E/G ratio of 1.45 and a beta of 1.98. Zillow Group, Inc. has a 12-month low of $26.67 and a 12-month high of $77.07. The company has a 50-day moving average of $30.92 and a 200 day moving average of $38.44.

Zillow Group (NASDAQ:Z - Get Free Report) last posted its earnings results on Wednesday, November 4th. The financial services provider reported $0.55 earnings per share for the quarter, missing the consensus estimate of $0.58 by ($0.03). The firm had revenue of $724.00 million during the quarter, compared to analyst estimates of $753.54 million. Zillow Group had a negative net margin of 3.95% and a positive return on equity of 3.18%. On average, sell-side analysts forecast that Zillow Group, Inc. will post 0.91 EPS for the current fiscal year.

Zillow Group News Roundup

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

• Positive Sentiment: Third-quarter revenue increased 7% year over year, with the rentals business helping cushion weakness in home sales. Zillow also said its “Zillow Preferred” model can generate more revenue per buyer connection than its prior model. Zillow Revenue Rises as Rentals Help Offset Weak Market for Home Sales How Zillow Is Staying Flexible in a Brittle Housing Market
• Neutral Sentiment: Needham reaffirmed its “hold” rating, signaling no change in its view of the shares. Needham rating information
• Negative Sentiment: Zillow reported third-quarter EPS of $0.55, below the roughly $0.58 consensus, while revenue of $724 million also missed expectations of about $754 million. Zillow misses Q3 earnings and revenue estimates
• Negative Sentiment: The company expects fourth-quarter revenue of $635 million to $665 million and forecasts purchase mortgage originations to decline 10%–15%, indicating continued pressure on its home-financing business. Zillow Q4 outlook
• Negative Sentiment: Housing-market indicators were weak in October: newly pending listings fell 16.8% year over year, while Zillow’s preliminary measure of existing-home sales declined 8.7%. Fewer transactions could weigh on sales-related revenue. October housing market report

Zillow Group Profile

Zillow Group, Inc NASDAQ: Z operates a digital real estate marketplace in the United States. Its platforms help consumers search for homes, research neighborhoods and market conditions, connect with real estate professionals, and manage various steps in the home-buying, selling, renting and financing processes.

The company's portfolio includes Zillow, Trulia, StreetEasy and HotPads, which provide property listings and real estate information. Zillow Group also offers services for real estate professionals, including marketing, lead generation, transaction management and showing coordination through products such as Zillow Premier Agent and ShowingTime+.

Through Zillow Home Loans and other affiliated services, the company provides or facilitates mortgage and closing-related solutions.

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