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

Key Points

• UBS lowered Zillow Group’s price target from $75 to $50 but maintained a “buy” rating, implying roughly 44% upside from the stock’s reported price of $34.69.
• Other analysts also reduced their targets, contributing to an overall “Moderate Buy” consensus rating and an average price target of $68.29.
• Zillow reported quarterly revenue of $708 million, up 18.4% year over year, and earnings of $0.53 per share, exceeding the $0.43 consensus estimate.

Zillow Group (NASDAQ:ZG - Get Free Report) had its price target decreased by equities research analysts at UBS Group from $75.00 to $50.00 in a research note issued on Friday,Benzinga reports. The brokerage presently has a "buy" rating on the technology company's stock. UBS Group's price objective points to a potential upside of 44.13% from the company's current price.

Several other equities analysts also recently commented on the stock. Mizuho decreased their price target on shares of Zillow Group from $65.00 to $53.00 and set a "neutral" rating on the stock in a research note on Thursday, May 7th. Piper Sandler decreased their target price on shares of Zillow Group from $70.00 to $55.00 and set an "overweight" rating on the stock in a research report on Thursday, May 7th. Canaccord Genuity Group dropped their price target on shares of Zillow Group from $72.00 to $52.00 and set a "hold" rating for the company in a research report on Thursday, May 7th. Wells Fargo & Company boosted their price target on Zillow Group from $45.00 to $46.00 and gave the company an "equal weight" rating in a research note on Tuesday, July 7th. Finally, Citigroup reissued a "market outperform" rating on shares of Zillow Group in a research report on Tuesday, May 26th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $68.29.

Zillow Group Price Performance

Shares of ZG traded up $0.64 during midday trading on Friday, hitting $34.69. The stock had a trading volume of 2,936,760 shares, compared to its average volume of 1,184,354. The company has a 50 day simple moving average of $33.27 and a two-hundred day simple moving average of $42.71. Zillow Group has a twelve month low of $29.03 and a twelve month high of $90.22. The firm has a market cap of $7.94 billion, a price-to-earnings ratio of 138.76, a price-to-earnings-growth ratio of 1.47 and a beta of 1.95.

Zillow Group (NASDAQ:ZG - Get Free Report) last issued its quarterly earnings data on Wednesday, May 6th. The technology company reported $0.53 earnings per share for the quarter, beating 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 company had revenue of $708.00 million for the quarter, compared to analyst estimates of $705.17 million. During the same period in the prior year, the firm earned $0.41 earnings per share. The company's revenue was up 18.4% on a year-over-year basis. Analysts forecast that Zillow Group will post 0.9 EPS for the current fiscal year.

Insider Buying and Selling at Zillow Group

In related news, CEO Jeremy Wacksman sold 9,072 shares of the firm's stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $36.54, for a total value of $331,490.88. Following the sale, the chief executive officer directly owned 153,699 shares of the company's stock, valued at $5,616,161.46. This trade represents a 5.57% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Jeremy Hofmann sold 5,501 shares of the business's stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $37.40, for a total value of $205,737.40. Following the transaction, the chief financial officer directly owned 68,315 shares of the company's stock, valued at approximately $2,554,981. The trade was a 7.45% 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 42,910 shares of company stock worth $1,605,732 over the last quarter. 29.88% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Zillow Group

Hedge funds and other institutional investors have recently made changes to their positions in the stock. AQR Capital Management LLC lifted its stake in Zillow Group by 40.5% in the 1st quarter. AQR Capital Management LLC now owns 12,890 shares of the technology company's stock valued at $862,000 after purchasing an additional 3,717 shares during the last quarter. Millennium Management LLC lifted its stake in shares of Zillow Group by 110.8% in the 1st quarter. Millennium Management LLC now owns 290,999 shares of the technology company's stock valued at $19,456,000 after acquiring an additional 152,955 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in shares of Zillow Group by 7.0% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 87,912 shares of the technology company's stock valued at $5,878,000 after acquiring an additional 5,737 shares during the last quarter. JPMorgan Chase & Co. boosted its holdings in shares of Zillow Group by 5.8% during the 2nd quarter. JPMorgan Chase & Co. now owns 21,093 shares of the technology company's stock valued at $1,445,000 after acquiring an additional 1,150 shares in the last quarter. Finally, Prudential Financial Inc. boosted its holdings in shares of Zillow Group by 16.3% during the 2nd quarter. Prudential Financial Inc. now owns 7,933 shares of the technology company's stock valued at $543,000 after acquiring an additional 1,110 shares in the last quarter. 20.32% of the stock is owned by institutional investors.

Zillow Group Company Profile

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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