KeyCorp Has Lowered Expectations for Zillow Group (NASDAQ:ZG) Stock Price

Key Points

• KeyCorp cut Zillow Group’s price target from $65 to $57 but maintained an “overweight” rating, implying roughly 61% upside from the stock’s reported $35.30 price.
• Analyst sentiment remains generally positive: Zillow has a consensus “Moderate Buy” rating and an average price target of $67.90, despite several neutral ratings and recent target reductions.
• Zillow’s latest quarterly results exceeded expectations, with EPS of $0.53 versus a $0.43 estimate and revenue of $708 million, up 18.4% year over year; however, insiders sold $1.6 million of stock over the past 90 days.

Zillow Group (NASDAQ:ZG - Get Free Report) had its price objective reduced by investment analysts at KeyCorp from $65.00 to $57.00 in a research note issued on Monday,Benzinga reports. The firm currently has an "overweight" rating on the technology company's stock. KeyCorp's target price suggests a potential upside of 61.45% from the stock's current price.

A number of other research analysts have also commented on the stock. Sanford C. Bernstein upgraded shares of Zillow Group from an "outperform" rating to a "buy" rating in a research report on Tuesday, May 26th. Citigroup reiterated a "market outperform" rating on shares of Zillow Group in a research report on Tuesday, May 26th. Zacks Research upgraded shares of Zillow Group from a "hold" rating to a "strong-buy" rating in a research report on Monday, July 6th. Barclays reduced their price objective on Zillow Group from $58.00 to $54.00 and set an "equal weight" rating on the stock in a research note on Friday, May 8th. Finally, BTIG Research reissued a "neutral" rating on shares of Zillow Group in a research note on Thursday, June 11th. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Zillow Group has a consensus rating of "Moderate Buy" and an average target price of $67.90.

Zillow Group Trading Up 1.8%

Shares of NASDAQ:ZG traded up $0.61 during mid-day trading on Monday, hitting $35.30. 84,285 shares of the company traded hands, compared to its average volume of 1,176,576. The stock has a 50-day moving average price of $33.23 and a two-hundred day moving average price of $42.48. Zillow Group has a 12-month low of $29.03 and a 12-month high of $90.22. The stock has a market cap of $8.08 billion, a P/E ratio of 141.18, a P/E/G ratio of 1.48 and a beta of 1.95.

Zillow Group (NASDAQ:ZG - Get Free Report) last posted its earnings results on Wednesday, May 6th. The technology company reported $0.53 EPS 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 firm had revenue of $708.00 million for the quarter, compared to analysts' expectations of $705.17 million. During the same quarter last year, the firm earned $0.41 EPS. The company's quarterly revenue was up 18.4% compared to the same quarter last year. As a group, analysts expect that Zillow Group will post 0.9 earnings per share for the current year.

Insider Activity at Zillow Group

In other Zillow Group news, Director Erik C. Blachford sold 791 shares of the firm's stock in a transaction on Monday, June 8th. The shares were sold at an average price of $34.80, for a total value of $27,526.80. Following the sale, the director owned 34,952 shares of the company's stock, valued at $1,216,329.60. This trade represents a 2.21% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Dan Spaulding sold 3,078 shares of the business's stock in a transaction dated 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 owned 49,696 shares in the company, valued at $1,858,630.40. The trade was a 5.83% decrease in their position. 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. Insiders sold a total of 42,910 shares of company stock worth $1,605,732 over the last ninety days. Insiders own 29.88% of the company's stock.

Institutional Trading of Zillow Group

Several large investors have recently modified their holdings of the business. Polianta Ltd raised its position in Zillow Group by 60.9% during the 2nd quarter. Polianta Ltd now owns 58,100 shares of the technology company's stock valued at $1,822,000 after purchasing an additional 22,000 shares during the last quarter. MFG Wealth Management Inc. bought a new stake in shares of Zillow Group in the 2nd quarter worth approximately $2,146,000. Assenagon Asset Management S.A. bought a new stake in shares of Zillow Group in the 2nd quarter worth approximately $1,546,000. NewEdge Advisors LLC increased its stake in shares of Zillow Group by 6.7% during the first quarter. NewEdge Advisors LLC now owns 11,071 shares of the technology company's stock valued at $458,000 after buying an additional 699 shares during the period. Finally, Edgestream Partners L.P. purchased a new position in shares of Zillow Group during the first quarter valued at approximately $398,000. 20.32% of the stock is owned by institutional investors.

About Zillow Group

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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