Keefe, Bruyette & Woods Lowers Zillow Group (NASDAQ:Z) Price Target to $34.00

Key Points

• Keefe, Bruyette & Woods cut Zillow’s price target from $37 to $34 and maintained a “market perform” rating, implying only 1.71% upside from the $33.43 share price.
• Zillow’s latest quarter exceeded expectations, with $0.52 adjusted EPS and $772 million in revenue, but the company posted a $4 million net loss after restructuring costs and issued weaker-than-expected revenue guidance.
• Analyst sentiment has weakened, with several firms downgrading Zillow to “hold”; the stock is down 7.4%, while insiders have sold $1.6 million of shares over the past 90 days.

Zillow Group (NASDAQ:Z - Get Free Report) had its price objective cut by equities research analysts at Keefe, Bruyette & Woods from $37.00 to $34.00 in a report issued on Friday,Benzinga reports. The brokerage presently has a "market perform" rating on the financial services provider's stock. Keefe, Bruyette & Woods' target price would suggest a potential upside of 1.71% from the company's current price.

A number of other equities research analysts have also commented on the stock. Sanford C. Bernstein lowered shares of Zillow Group from a "strong-buy" rating to a "hold" rating in a report on Thursday. Wall Street Zen upgraded Zillow Group from a "hold" rating to a "buy" rating in a research report on Saturday, May 9th. Weiss Ratings lowered Zillow Group from a "sell (d+)" rating to a "sell (d)" rating in a research note on Friday, May 22nd. Evercore cut Zillow Group from a "strong-buy" rating to a "hold" rating in a report on Thursday. Finally, Royal Bank Of Canada lowered their price objective on Zillow Group from $95.00 to $70.00 and set an "outperform" rating for the company in a research report on Wednesday, June 10th. Two investment analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $68.50.

Zillow Group Stock Down 7.4%

Shares of Zillow Group stock opened at $33.43 on Friday. The stock has a market capitalization of $7.65 billion, a P/E ratio of 151.96, a price-to-earnings-growth ratio of 1.54 and a beta of 1.98. The company has a 50-day simple moving average of $33.08 and a 200 day simple moving average of $41.59. Zillow Group has a 12-month low of $29.23 and a 12-month high of $93.88.

Zillow Group (NASDAQ:Z - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The financial services provider reported $0.52 EPS for the quarter, beating analysts' consensus estimates of $0.45 by $0.07. The firm had revenue of $772.00 million for the quarter, compared to analyst estimates of $758.10 million. Zillow Group had a net margin of 1.96% and a return on equity of 2.27%. On average, equities analysts anticipate that Zillow Group will post 0.9 earnings per share for the current year.

Insider Buying and Selling

In other news, General Counsel Bradley D. Owens sold 3,364 shares of the business's stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $37.23, for a total transaction of $125,241.72. Following the completion of the transaction, the general counsel directly owned 65,245 shares in the company, valued at approximately $2,429,071.35. The trade was a 4.90% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available 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 the 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 sale, the insider owned 49,696 shares in the company, valued at $1,858,630.40. This represents a 5.83% 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 have sold a total of 42,910 shares of company stock worth $1,605,732 over the last 90 days. 25.03% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Independent Franchise Partners LLP raised its holdings in shares of Zillow Group by 0.9% during the fourth quarter. Independent Franchise Partners LLP now owns 10,953,405 shares of the financial services provider's stock worth $747,241,000 after acquiring an additional 94,569 shares during the period. Capital World Investors increased its holdings in Zillow Group by 1.8% during the 4th quarter. Capital World Investors now owns 10,826,066 shares of the financial services provider's stock worth $738,554,000 after purchasing an additional 191,058 shares in the last quarter. Tiger Global Management LLC raised its stake in shares of Zillow Group by 21.7% in the 1st quarter. Tiger Global Management LLC now owns 7,368,957 shares of the financial services provider's stock valued at $304,927,000 after purchasing an additional 1,312,000 shares during the period. State Street Corp lifted its holdings in shares of Zillow Group by 3.9% in the fourth quarter. State Street Corp now owns 3,838,788 shares of the financial services provider's stock valued at $261,882,000 after purchasing an additional 143,726 shares in the last quarter. Finally, Geode Capital Management LLC boosted its position in shares of Zillow Group by 1.7% during the fourth quarter. Geode Capital Management LLC now owns 3,363,657 shares of the financial services provider's stock worth $228,898,000 after buying an additional 55,323 shares during the period. 71.01% of the stock is owned by institutional investors and hedge funds.

Key Zillow Group News

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

• Positive Sentiment: Zillow’s second-quarter adjusted earnings of $0.52 per share exceeded estimates of approximately $0.44–$0.45, while revenue of $772 million also topped expectations of about $758 million. Revenue increased 18% year over year. Zillow Q2 earnings report
• Positive Sentiment: July home sales rose 7% year over year, the strongest annual gain of 2026, indicating some improvement in housing transaction activity.
• Neutral Sentiment: Zillow expanded CFO Jeremy Hofmann’s responsibilities to include chief operating officer and appointed Cassandra Knight as chief legal and policy officer. The changes may support execution of Zillow’s housing “super app,” but also underscore a significant period of organizational change. Zillow executive leadership changes
• Negative Sentiment: Zillow forecast third-quarter revenue of $745 million to $760 million, below the $772.3 million consensus estimate, and projected full-year revenue of $2.9 billion to $3.0 billion versus roughly $3.0 billion expected. The soft guidance is the clearest catalyst weighing on the shares. Zillow soft outlook
• Negative Sentiment: Despite the adjusted earnings beat, Zillow reported a $4 million net loss as $36 million of restructuring costs reduced profitability. The company also plans to eliminate just over 500 positions, or about 7% of its workforce, amid a flat housing market. Zillow layoffs
• Negative Sentiment: Evercore, Sanford C. Bernstein and Zacks Research each downgraded Zillow from “strong buy” to “hold,” adding pressure to investor sentiment after the earnings release.
• Negative Sentiment: Several law firms are promoting a securities-fraud class action covering investors who purchased Zillow shares between February 11, 2025, and May 7, 2026. The August 10 lead-plaintiff deadline increases near-term litigation headlines, although the allegations remain unproven. Zillow securities class action

About Zillow Group

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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