Stock Traders Purchase High Volume of Zillow Group Call Options (NASDAQ:ZG)

Key Points

• Investors showed significant interest in Zillow Group, purchasing 4,633 call options on Monday, a substantial increase of 1,738% compared to the average daily volume.
• Insider selling was notable, with key executives Dan Spaulding and CFO Jeremy Hofmann selling 5,680 and 8,168 shares respectively, reflecting a decrease in ownership of approximately 8.7% and 8.85%.
• Several analysts have raised their price targets for Zillow Group, with DA Davidson increasing its target from $85.00 to $95.00 and maintaining a "buy" rating, reflecting positive sentiment on the stock.

Zillow Group, Inc. (NASDAQ:ZG - Get Free Report) was the target of some unusual options trading on Monday. Stock traders bought 4,633 call options on the company. This represents an increase of approximately 1,738% compared to the average volume of 252 call options.

Zillow Group Price Performance

Shares of ZG stock traded down $1.41 during midday trading on Friday, hitting $84.34. The company had a trading volume of 436,576 shares, compared to its average volume of 506,804. The company's 50 day simple moving average is $78.98 and its 200 day simple moving average is $71.36. The stock has a market cap of $20.43 billion, a price-to-earnings ratio of -324.38, a PEG ratio of 8.99 and a beta of 2.02. Zillow Group has a 52-week low of $55.08 and a 52-week high of $88.45.

Zillow Group (NASDAQ:ZG - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The technology company reported $0.40 EPS for the quarter, missing the consensus estimate of $0.44 by ($0.04). The business had revenue of $655.00 million during the quarter, compared to analyst estimates of $647.06 million. Zillow Group had a negative net margin of 2.60% and a negative return on equity of 1.26%. The firm's quarterly revenue was up 14.5% compared to the same quarter last year. During the same period in the prior year, the business earned $0.39 earnings per share. Analysts anticipate that Zillow Group will post 0.32 EPS for the current year.

Insider Activity

In related news, COO Jun Choo sold 45,710 shares of the firm's stock in a transaction that occurred on Thursday, August 7th. The stock was sold at an average price of $85.21, for a total transaction of $3,894,949.10. Following the transaction, the chief operating officer owned 117,098 shares in the company, valued at $9,977,920.58. This trade represents a 28.08% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CTO David A. Beitel sold 22,510 shares of the firm's stock in a transaction that occurred on Monday, September 8th. The stock was sold at an average price of $90.97, for a total value of $2,047,734.70. Following the transaction, the chief technology officer owned 144,549 shares in the company, valued at $13,149,622.53. This represents a 13.47% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 657,087 shares of company stock worth $56,286,479 over the last ninety days. 17.14% of the stock is owned by corporate insiders.

Institutional Trading of Zillow Group

Hedge funds have recently modified their holdings of the business. GAMMA Investing LLC lifted its holdings in shares of Zillow Group by 38.0% in the 1st quarter. GAMMA Investing LLC now owns 1,828 shares of the technology company's stock valued at $122,000 after buying an additional 503 shares during the period. Wealth Enhancement Advisory Services LLC lifted its holdings in shares of Zillow Group by 60.9% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 6,044 shares of the technology company's stock valued at $404,000 after buying an additional 2,288 shares during the period. SG Americas Securities LLC lifted its holdings in shares of Zillow Group by 253.3% in the 1st quarter. SG Americas Securities LLC now owns 20,980 shares of the technology company's stock valued at $1,403,000 after buying an additional 15,042 shares during the period. Trexquant Investment LP acquired a new stake in shares of Zillow Group in the 1st quarter valued at approximately $370,000. Finally, Cetera Investment Advisers acquired a new stake in shares of Zillow Group in the 4th quarter valued at approximately $228,000. 20.32% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

ZG has been the topic of a number of research reports. Susquehanna restated a "neutral" rating on shares of Zillow Group in a research note on Friday, August 8th. Canaccord Genuity Group raised their price target on Zillow Group from $76.00 to $84.00 and gave the stock a "hold" rating in a research note on Thursday, August 7th. KeyCorp reiterated an "overweight" rating and issued a $92.00 target price (up from $90.00) on shares of Zillow Group in a research note on Thursday, August 7th. Wells Fargo & Company lowered their target price on Zillow Group from $75.00 to $73.00 and set an "equal weight" rating on the stock in a research note on Thursday. Finally, Piper Sandler lifted their target price on Zillow Group from $82.00 to $94.00 and gave the company an "overweight" rating in a research note on Thursday, August 7th. Thirteen equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Zillow Group currently has an average rating of "Hold" and an average target price of $85.52.

About Zillow Group

Zillow Group, Inc operates real estate brands in mobile applications and Websites in the United States. The company offers premier agent and rentals marketplaces, new construction marketplaces, advertising, display advertising, and business technology solutions, as well as dotloop and floor plans. It also provides mortgage originations and the sale of mortgages, and advertising to mortgage lenders and other mortgage professionals; and title and escrow services.