Zillow Group (NASDAQ:ZG) Hits New 1-Year Low - Should You Sell?

Key Points

• Zillow Group shares hit a new 52-week low of $28.90, trading below both their 50-day and 200-day moving averages.
• Analyst sentiment is mixed: 11 analysts rate the stock a Buy, 13 a Hold and one a Sell, resulting in an overall “Hold” rating and an average price target of $53.14.
• The company exceeded quarterly expectations, reporting $0.52 in EPS versus a $0.44 consensus and revenue of $772 million, up 17.9% year over year; however, insiders sold shares worth $1.32 million over the past 90 days.

Shares of Zillow Group, Inc. (NASDAQ:ZG - Get Free Report) hit a new 52-week low during trading on Thursday . The stock traded as low as $28.90 and last traded at $28.91, with a volume of 100647 shares trading hands. The stock had previously closed at $29.35.

Analyst Ratings Changes

Several research firms recently issued reports on ZG. DA Davidson decreased their price objective on shares of Zillow Group from $60.00 to $50.00 and set a "buy" rating for the company in a report on Thursday, August 6th. Deutsche Bank Aktiengesellschaft set a $80.00 price target on shares of Zillow Group in a report on Monday, August 24th. The Goldman Sachs Group dropped their price objective on Zillow Group from $53.00 to $40.00 and set a "neutral" rating on the stock in a research note on Friday, June 12th. Evercore set a $40.00 target price on Zillow Group and gave the company an "in-line" rating in a research note on Thursday, August 6th. Finally, Zacks Research downgraded Zillow Group from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 4th. Eleven analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Hold" and an average price target of $53.14.

Zillow Group Stock Down 1.3%

The stock's 50-day moving average price is $34.06 and its 200 day moving average price is $37.04. The firm has a market cap of $6.51 billion, a price-to-earnings ratio of 130.92, a price-to-earnings-growth ratio of 1.38 and a beta of 1.97.

Zillow Group (NASDAQ:ZG - Get Free Report) last released its earnings results on Wednesday, August 5th. The technology company reported $0.52 earnings per share for the quarter, topping analysts' consensus estimates of $0.44 by $0.08. Zillow Group had a return on equity of 2.32% and a net margin of 1.96%.The business had revenue of $772.00 million for the quarter, compared to the consensus estimate of $758.25 million. During the same period last year, the business earned $0.40 earnings per share. The firm's revenue for the quarter was up 17.9% compared to the same quarter last year. On average, research analysts predict that Zillow Group, Inc. will post 0.89 EPS for the current year.

Insiders Place Their Bets

In other Zillow Group news, CFO Jeremy Hofmann sold 5,661 shares of the business's stock in a transaction on Monday, August 17th. The shares were sold at an average price of $34.18, for a total value of $193,492.98. Following the sale, the chief financial officer owned 59,144 shares of the company's stock, valued at $2,021,541.92. The trade was a 8.74% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. 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 3,169 shares of the stock in a transaction on Friday, August 14th. The shares were sold at an average price of $35.37, for a total transaction of $112,087.53. Following the completion of the transaction, the insider owned 44,561 shares of the company's stock, valued at approximately $1,576,122.57. This represents a 6.64% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 38,539 shares of company stock valued at $1,323,800 in the last ninety days. 29.88% of the stock is currently owned by insiders.

Institutional Trading of Zillow Group

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ZG. Tidal Investments LLC acquired a new stake in Zillow Group during the second quarter valued at approximately $436,000. Engineers Gate Manager LP raised its holdings in shares of Zillow Group by 1,290.7% in the 2nd quarter. Engineers Gate Manager LP now owns 95,959 shares of the technology company's stock worth $3,010,000 after buying an additional 89,059 shares in the last quarter. Integrated Wealth Concepts LLC acquired a new position in shares of Zillow Group in the 2nd quarter worth approximately $29,000. Arizona State Retirement System bought a new position in shares of Zillow Group during the 2nd quarter worth approximately $340,000. Finally, Nykredit A S bought a new position in shares of Zillow Group during the 2nd quarter worth approximately $65,000. Institutional investors own 20.32% of the company's stock.

Zillow Group Company Profile

Zillow Group, Inc is a digital real estate company that operates online marketplaces and technology platforms for consumers and real estate professionals. Its flagship Zillow platform provides property listings, home-value estimates, neighborhood information, mortgage resources and tools that help people buy, sell, rent and finance homes.

The company's portfolio also includes Trulia, StreetEasy, HotPads and Zillow Rentals, which serve home shoppers and renters in markets across the United States.

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