Zillow Group (NASDAQ:ZG) Shares Break Below Fifty Day Moving Average - Should You Sell?

Key Points

• Zillow Group shares fell below their 50-day moving average, trading as low as $27.56 versus the $33.24 average, with the latest price near $27.97.
• Analyst sentiment is mixed: 10 analysts rate the stock a Buy, 12 a Hold and one a Sell, producing an overall “Hold” rating and an average price target of $51.38. Several firms recently lowered their targets.
• The company beat quarterly expectations, reporting $0.52 in earnings per share versus $0.44 expected and $772 million in revenue, up 17.9% year over year; however, insiders have sold about 38,539 shares over the past three months.

Zillow Group, Inc. (NASDAQ:ZG - Get Free Report)'s share price passed below its fifty day moving average during trading on Wednesday. The stock has a fifty day moving average of $33.24 and traded as low as $27.56. Zillow Group shares last traded at $27.97, with a volume of 1,297,872 shares.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the company. Sanford C. Bernstein downgraded Zillow Group from an "outperform" rating to a "market perform" rating and cut their target price for the company from $50.00 to $38.00 in a research report on Thursday, August 6th. Evercore set a $40.00 price target on Zillow Group and gave the stock an "in-line" rating in a research report on Thursday, August 6th. Piper Sandler dropped their price target on Zillow Group from $55.00 to $46.00 and set an "overweight" rating for the company in a research note on Friday, August 7th. KeyCorp reaffirmed an "overweight" rating and set a $48.00 price objective on shares of Zillow Group in a research report on Tuesday, August 25th. Finally, Cantor Fitzgerald cut their price objective on shares of Zillow Group from $34.00 to $32.00 and set a "neutral" rating for the company in a research report on Thursday, August 6th. Ten equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $51.38.

Zillow Group Stock Performance

The stock has a fifty day simple moving average of $33.24 and a two-hundred day simple moving average of $35.93. The stock has a market cap of $6.29 billion, a price-to-earnings ratio of 127.14, a P/E/G ratio of 1.23 and a beta of 2.02.

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

Insider Transactions at Zillow Group

In other Zillow Group news, insider Dan Spaulding sold 3,169 shares of the firm's stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $35.37, for a total value of $112,087.53. Following the sale, the insider owned 44,561 shares in the company, valued at $1,576,122.57. This trade represents a 6.64% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Erik Blachford sold 792 shares of the business's stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $35.71, for a total transaction of $28,282.32. Following the sale, the director directly owned 34,160 shares in the company, valued at approximately $1,219,853.60. The trade was a 2.27% 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. Over the last three months, insiders have sold 38,539 shares of company stock valued at $1,323,800. Corporate insiders own 29.88% of the company's stock.

Institutional Investors Weigh In On Zillow Group

Several hedge funds have recently modified their holdings of ZG. EverSource Wealth Advisors LLC grew its position in shares of Zillow Group by 183.6% in the 1st quarter. EverSource Wealth Advisors LLC now owns 984 shares of the technology company's stock valued at $41,000 after buying an additional 637 shares during the last quarter. Public Employees Retirement System of Ohio raised its position in shares of Zillow Group by 4.7% during the first quarter. Public Employees Retirement System of Ohio now owns 15,433 shares of the technology company's stock worth $639,000 after acquiring an additional 699 shares during the last quarter. NewEdge Advisors LLC raised its position 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 worth $458,000 after acquiring an additional 699 shares during the last quarter. Silvant Capital Management LLC lifted its stake in shares of Zillow Group by 1.6% in the fourth quarter. Silvant Capital Management LLC now owns 48,210 shares of the technology company's stock worth $3,289,000 after acquiring an additional 774 shares during the period. Finally, Integrated Wealth Concepts LLC acquired a new position in shares of Zillow Group in the second quarter worth approximately $29,000. Institutional investors and hedge funds own 20.32% of the company's stock.

About Zillow Group

Zillow Group, Inc is a digital real estate company that operates online marketplaces and technology platforms designed to help consumers buy, sell, rent and finance homes. Founded in 2006 and headquartered in Seattle, Washington, the company serves the U.S. residential real estate market through a portfolio of well-known brands.

Its flagship Zillow platform provides home listings, property information, estimated home values through its Zestimate tool, rental listings, mortgage resources and connections to real estate professionals.

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