Wells Fargo & Company Issues Pessimistic Forecast for Zillow Group (NASDAQ:ZG) Stock Price

Key Points

• Wells Fargo cut Zillow Group’s price target from $46 to $35 while maintaining an “equal weight” rating, implying only 1.24% upside from the stock’s $34.57 price.
• Analyst sentiment remains mixed but cautious: Zillow has 11 Buy, 14 Hold, and 1 Sell rating, with an average price target of $56.14; several firms recently reduced their targets.
• Zillow exceeded quarterly earnings and revenue expectations, reporting $0.52 EPS and $772 million in revenue, but its valuation remains elevated and its cautious outlook, restructuring costs, and net loss continue to weigh on investor sentiment.

Zillow Group (NASDAQ:ZG - Get Free Report) had its target price dropped by analysts at Wells Fargo & Company from $46.00 to $35.00 in a research note issued on Friday,Benzinga reports. The firm presently has an "equal weight" rating on the technology company's stock. Wells Fargo & Company's price target indicates a potential upside of 1.24% from the stock's current price.

A number of other equities research analysts also recently issued reports on ZG. Weiss Ratings downgraded shares of Zillow Group from a "sell (d+)" rating to a "sell (d)" rating in a research note on Friday, May 22nd. Benchmark lowered their price objective on shares of Zillow Group from $110.00 to $80.00 and set a "buy" rating for the company in a research report on Thursday. Piper Sandler dropped their target price on shares of Zillow Group from $70.00 to $55.00 and set an "overweight" rating for the company in a report on Thursday, May 7th. Susquehanna cut their target price on Zillow Group from $50.00 to $38.00 and set a "neutral" rating on the stock in a research report on Thursday. Finally, KeyCorp decreased their price target on Zillow Group from $65.00 to $57.00 and set an "overweight" rating on the stock in a research note on Monday. Eleven investment analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $56.14.

Zillow Group Price Performance

Shares of NASDAQ:ZG traded up $0.81 during midday trading on Friday, reaching $34.57. 390,826 shares of the company's stock were exchanged, compared to its average volume of 1,193,546. The firm's 50 day simple moving average is $33.19 and its two-hundred day simple moving average is $41.59. The stock has a market cap of $7.91 billion, a price-to-earnings ratio of 157.30, a P/E/G ratio of 1.58 and a beta of 1.95. Zillow Group has a fifty-two week low of $29.03 and a fifty-two week high of $90.22.

Zillow Group (NASDAQ:ZG - Get Free Report) last posted its 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. The company had revenue of $772.00 million for the quarter, compared to analysts' expectations of $758.25 million. Zillow Group had a net margin of 1.96% and a return on equity of 2.27%. Zillow Group's revenue for the quarter was up 17.9% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.40 earnings per share. Equities research analysts predict that Zillow Group will post 0.9 earnings per share for the current fiscal year.

Insider Transactions at Zillow Group

In other Zillow Group news, insider Dan Spaulding sold 3,078 shares of the firm's stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $37.40, for a total value of $115,117.20. Following the completion of the transaction, the insider owned 49,696 shares of the company's stock, valued at $1,858,630.40. This trade represents a 5.83% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at 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, CFO Jeremy Hofmann sold 5,501 shares of the business's stock in a transaction on Monday, May 18th. The stock was sold at an average price of $37.40, for a total transaction of $205,737.40. Following the completion of the transaction, the chief financial officer owned 68,315 shares of the company's stock, valued at approximately $2,554,981. This trade represents a 7.45% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 42,910 shares of company stock valued at $1,605,732. 29.88% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. M&T Bank Corp increased its stake in shares of Zillow Group by 38,344.0% during the fourth quarter. M&T Bank Corp now owns 1,604,270 shares of the technology company's stock worth $120,092,000 after buying an additional 1,600,097 shares during the period. Polianta Ltd purchased a new position in Zillow Group in the first quarter worth approximately $1,494,000. Independent Franchise Partners LLP lifted 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 worth $138,135,000 after acquiring an additional 21,862 shares during the last quarter. Deltroit Asset Management UK LLP acquired a new position in Zillow Group during the 4th quarter worth approximately $2,715,000. Finally, IMC Chicago LLC acquired a new position in Zillow Group during the 4th quarter worth approximately $1,050,000. 20.32% of the stock is currently owned by hedge funds and other institutional investors.

Key Zillow Group News

Here are the key news stories impacting Zillow Group this week:

• Positive Sentiment: Zillow reported second-quarter revenue of $772 million, up 17.9% year over year and above the $758 million consensus estimate. Adjusted EPS of $0.52 also exceeded expectations of $0.44, supported by growth in mortgage and rental businesses. Zillow Q2 earnings article
• Positive Sentiment: Benchmark maintained a “buy” rating despite reducing its price target to $80 from $110, while DA Davidson also retained a “buy” rating with a $50 target. These targets imply substantial potential upside if Zillow’s longer-term growth strategy succeeds. Benchmark price target article
• Neutral Sentiment: Zillow announced leadership changes, expanding CFO Jeremy Hofmann’s role to chief operating officer and appointing Cassandra Knight as its first chief legal and policy officer. The moves are intended to support the company’s integrated housing “super app” strategy, but add execution considerations for investors. Zillow leadership announcement
• Negative Sentiment: Third-quarter revenue guidance of $745 million to $760 million was below the $772.3 million analyst consensus, and full-year revenue guidance of $2.9 billion to $3.0 billion was roughly in line with the low end of expectations. The cautious outlook overshadowed the quarterly beat.
• Negative Sentiment: Zillow posted a $4 million net loss as $36 million in restructuring costs weighed on results. Reports also highlighted layoffs and executive changes, raising concerns about near-term profitability and operating momentum. Zillow earnings reaction
• Negative Sentiment: Analyst sentiment deteriorated: Evercore downgraded Zillow to “hold” with a $40 target, Zacks cut its rating to “hold,” Susquehanna lowered its target to $38 and Cantor Fitzgerald cut its target to $32. RBC also warned that Zillow’s preferred-model shift could create near-term pressure. RBC Zillow analysis
• Negative Sentiment: Zillow’s July housing report showed sales up 7% year over year, but sharply lower newly pending sales and higher mortgage rates suggested that the improvement may not persist into the second half. Zillow July market report
• Negative Sentiment: Investor law firms are promoting a securities class action covering purchases from February 11, 2025, through May 7, 2026, with an August 10 lead-plaintiff deadline. While the claims are not an adjudicated finding, the litigation adds headline and potential financial risk. Zillow securities lawsuit notice

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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