Zillow Group (NASDAQ:ZG) Stock Price Crosses Below Fifty Day Moving Average After Analyst Downgrade

Key Points

• Zillow Group shares fell below their 50-day moving average, trading as low as $31.61 after UBS lowered its price target from $50 to $48, while maintaining a Buy rating.
• Analyst sentiment is mixed: Zillow has an average rating of Hold and an average price target of $51.10, with 10 Buy, 12 Hold, and 1 Sell rating.
• The company reported stronger-than-expected quarterly results, including $0.52 earnings per share versus $0.44 expected and $772 million in revenue, up 17.9% year over year.

Zillow Group, Inc. (NASDAQ:ZG - Get Free Report)'s share price crossed below its 50 day moving average during trading on Wednesday after UBS Group lowered their price target on the stock from $50.00 to $48.00. The stock has a 50 day moving average of $32.28 and traded as low as $31.61. UBS Group currently has a buy rating on the stock. Zillow Group shares last traded at $31.87, with a volume of 979,246 shares trading hands.

Several other brokerages have also recently weighed in on ZG. Evercore set a $40.00 price objective on shares of Zillow Group and gave the stock an "in-line" rating in a research note on Thursday, August 6th. Citizens Jmp cut their target price on shares of Zillow Group from $75.00 to $46.00 and set a "market outperform" rating for the company in a research report on Friday, August 7th. Sanford C. Bernstein cut shares of Zillow Group from an "outperform" rating to a "market perform" rating and reduced their target price for the company from $50.00 to $38.00 in a report on Thursday, August 6th. Cantor Fitzgerald reduced their target price on shares of Zillow Group from $34.00 to $32.00 and set a "neutral" rating for the company in a report on Thursday, August 6th. Finally, KeyCorp reiterated an "overweight" rating and issued a $48.00 price target on shares of Zillow Group in a research report on Tuesday, August 25th. Ten investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $51.10.

Insider Transactions at Zillow Group

In related news, CTO David A. Beitel sold 1,798 shares of the business's stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $34.24, for a total transaction of $61,563.52. Following the completion of the transaction, the chief technology officer directly owned 133,013 shares in the company, valued at approximately $4,554,365.12. The trade was a 1.33% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Errol G. Samuelson sold 3,154 shares of the stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $34.24, for a total transaction of $107,992.96. Following the completion of the sale, the insider directly owned 130,885 shares of the company's stock, valued at $4,481,502.40. This represents a 2.35% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 38,539 shares of company stock valued at $1,323,800. Company insiders own 29.88% of the company's stock.

Hedge Funds Weigh In On Zillow Group

Several large investors have recently added to or reduced their stakes in ZG. Technology Crossover Management XI Ltd. purchased a new stake in shares of Zillow Group in the second quarter worth $73,694,895. Kahn Brothers Group Inc. purchased a new position in shares of Zillow Group during the 2nd quarter valued at $37,265,000. Assenagon Asset Management S.A. lifted its stake in shares of Zillow Group by 724.4% during the 3rd quarter. Assenagon Asset Management S.A. now owns 406,398 shares of the technology company's stock valued at $11,257,000 after buying an additional 357,104 shares in the last quarter. Hsbc Holdings PLC boosted its holdings in Zillow Group by 1,616.8% in the 1st quarter. Hsbc Holdings PLC now owns 135,352 shares of the technology company's stock worth $5,602,000 after buying an additional 127,468 shares during the period. Finally, Quantinno Capital Management LP boosted its holdings in Zillow Group by 106.6% in the 1st quarter. Quantinno Capital Management LP now owns 176,052 shares of the technology company's stock worth $7,287,000 after buying an additional 90,858 shares during the period. Hedge funds and other institutional investors own 20.32% of the company's stock.

Zillow Group Stock Performance

The company has a market cap of $7.17 billion, a P/E ratio of 144.87, a P/E/G ratio of 1.44 and a beta of 2.02. The firm's fifty day moving average is $32.28 and its two-hundred day moving average is $39.73.

Zillow Group (NASDAQ:ZG - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The technology company reported $0.52 EPS for the quarter, beating 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 analysts' expectations of $758.25 million. During the same period last year, the firm earned $0.40 earnings per share. The business's quarterly revenue was up 17.9% on a year-over-year basis. On average, equities research analysts expect that Zillow Group, Inc. will post 0.92 EPS for the current year.

About Zillow Group

Zillow Group, Inc is a digital real estate company that operates online marketplaces and technology platforms for consumers, real estate professionals, and other housing industry participants. Its services are designed to help people search for homes, understand property values, connect with agents, and manage transactions throughout the residential real estate process.

The company's portfolio includes Zillow, Trulia, StreetEasy, HotPads, and ShowingTime+. Zillow provides home listings, estimated property values, rental information, agent connections, mortgage resources, and other housing-related tools.

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