Zillow Group (NASDAQ:ZG) Stock Price Down 3.7% - Time to Sell?

Key Points

• Zillow shares fell 3.7% to approximately $30.82, with trading volume down 79% from its average; the stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment is mixed, with a consensus rating of “Hold” from 25 analysts and an average price target of $53.14, despite recent target-price cuts from Goldman Sachs and UBS.
• Zillow exceeded quarterly expectations, reporting $0.52 in EPS versus $0.44 expected and 17.9% year-over-year revenue growth, although its high 141.92 price-to-earnings ratio and recent insider selling may concern investors.

Shares of Zillow Group, Inc. (NASDAQ:ZG - Get Free Report) were down 3.7% on Thursday . The stock traded as low as $31.03 and last traded at $30.8180. Approximately 247,150 shares traded hands during mid-day trading, a decline of 79% from the average daily volume of 1,154,954 shares. The stock had previously closed at $32.00.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on ZG shares. The Goldman Sachs Group dropped their target price on Zillow Group from $53.00 to $40.00 and set a "neutral" rating on the stock in a research report on Friday, June 12th. BTIG Research reaffirmed a "neutral" rating on shares of Zillow Group in a report on Thursday, June 11th. KeyCorp restated an "overweight" rating and issued a $48.00 price objective on shares of Zillow Group in a research report on Tuesday, August 25th. UBS Group decreased their target price on shares of Zillow Group from $75.00 to $50.00 and set a "buy" rating on the stock in a research report on Friday, July 31st. Finally, Royal Bank Of Canada restated an "outperform" rating and issued a $55.00 price target on shares of Zillow Group in a report on Friday, September 11th. Eleven equities research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, Zillow Group currently has an average rating of "Hold" and a consensus target price of $53.14.

Zillow Group Stock Down 2.6%

The firm has a market cap of $7.01 billion, a price-to-earnings ratio of 141.92, a PEG ratio of 1.44 and a beta of 1.97. The company has a 50 day moving average of $34.25 and a 200 day moving average of $37.56.

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

Insider Buying and Selling at Zillow Group

In other news, CFO Jeremy Hofmann sold 5,661 shares of the business's stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $34.18, for a total transaction of $193,492.98. Following the completion of the transaction, the chief financial officer directly owned 59,144 shares in the company, valued at approximately $2,021,541.92. The trade was a 8.74% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. 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, Director Claire Thielke sold 1,187 shares of Zillow Group stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $35.71, for a total value of $42,387.77. Following the sale, the director directly owned 2,375 shares in the company, valued at $84,811.25. The trade was a 33.32% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 38,539 shares of company stock worth $1,323,800. Corporate insiders own 29.88% of the company's stock.

Institutional Investors Weigh In On Zillow Group

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ZG. Kahn Brothers Group Inc. bought a new stake in Zillow Group in the second quarter worth about $22,560,872,000. Norges Bank acquired a new stake in shares of Zillow Group during the 4th quarter valued at $152,050,000. Independent Franchise Partners LLP grew its stake in Zillow Group by 1.1% in the fourth quarter. Independent Franchise Partners LLP now owns 2,024,556 shares of the technology company's stock valued at $138,135,000 after purchasing an additional 21,862 shares in the last quarter. Technology Crossover Management XI Ltd. bought a new stake in shares of Zillow Group in the 2nd quarter valued at approximately $73,694,895. Finally, Dimensional Fund Advisors LP increased its stake in shares of Zillow Group by 18.2% during the 1st quarter. Dimensional Fund Advisors LP now owns 554,460 shares of the technology company's stock worth $22,947,000 after purchasing an additional 85,367 shares during the last quarter. Institutional investors 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 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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