Zillow Group (NASDAQ:Z) Downgraded to Hold Rating by Evercore

Key Points

• Evercore downgraded Zillow Group from “strong buy” to “hold,” adding to a mixed analyst outlook. The stock’s consensus rating remains “Moderate Buy,” with an average price target of $68.88.
• Zillow’s latest quarter exceeded expectations, with adjusted EPS of $0.52 versus $0.45 expected and revenue of $772 million versus $758.1 million forecast. However, shares opened down 7.4%, reflecting concerns about the company’s outlook.
• Forward guidance and housing-market conditions remain challenging: Zillow forecast third-quarter revenue below consensus, reported restructuring costs and job cuts, and cited weaker leading housing indicators and elevated mortgage rates.

Zillow Group (NASDAQ:Z - Get Free Report) was downgraded by equities researchers at Evercore from a "strong-buy" rating to a "hold" rating in a report released on Thursday,Zacks.com reports.

Several other brokerages have also recently issued reports on Z. Royal Bank Of Canada cut their price target on Zillow Group from $95.00 to $70.00 and set an "outperform" rating for the company in a research note on Wednesday, June 10th. Zacks Research lowered Zillow Group from a "strong-buy" rating to a "hold" rating in a research note on Tuesday. Jefferies Financial Group dropped their price objective on Zillow Group from $75.00 to $60.00 and set a "buy" rating for the company in a report on Tuesday, July 14th. UBS Group cut their target price on Zillow Group from $80.00 to $75.00 and set a "buy" rating for the company in a research report on Tuesday, April 28th. Finally, Wall Street Zen raised Zillow Group from a "hold" rating to a "buy" rating in a report on Saturday, May 9th. Two investment analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $68.88.

Zillow Group Stock Down 7.4%

Shares of Zillow Group stock opened at $33.43 on Thursday. Zillow Group has a twelve month low of $29.23 and a twelve month high of $93.88. The company has a 50-day simple moving average of $33.08 and a two-hundred day simple moving average of $41.59. The stock has a market capitalization of $7.65 billion, a price-to-earnings ratio of 151.96, a price-to-earnings-growth ratio of 1.54 and a beta of 1.98.

Zillow Group (NASDAQ:Z - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The financial services provider reported $0.52 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.45 by $0.07. Zillow Group had a net margin of 1.96% and a return on equity of 2.27%. The firm had revenue of $772.00 million during the quarter, compared to the consensus estimate of $758.10 million. On average, sell-side analysts anticipate that Zillow Group will post 0.9 earnings per share for the current fiscal year.

Insider Buying and Selling at Zillow Group

In other Zillow Group news, CFO Jeremy Hofmann sold 5,501 shares of the business'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 transaction of $205,737.40. Following the completion of the transaction, the chief financial officer directly owned 68,315 shares in the company, valued at $2,554,981. The trade was a 7.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, 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, CEO Jeremy Wacksman sold 9,072 shares of the company's stock in a transaction on 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 owned 153,699 shares of the company's stock, valued at $5,616,161.46. The trade was a 5.57% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 42,910 shares of company stock worth $1,605,732 in the last three months. Company insiders own 25.03% of the company's stock.

Hedge Funds Weigh In On Zillow Group

Several hedge funds and other institutional investors have recently modified their holdings of Z. V Square Quantitative Management LLC acquired a new position in shares of Zillow Group during the 4th quarter worth $28,000. Flagship Harbor Advisors LLC acquired a new stake in Zillow Group in the fourth quarter valued at about $43,000. IFC & Insurance Marketing Inc. acquired a new stake in Zillow Group in the fourth quarter valued at about $68,000. SBI Okasan Asset Management Co.Ltd. bought a new position in Zillow Group in the fourth quarter valued at about $71,000. Finally, Towarzystwo Funduszy Inwestycyjnych PZU SA grew its position in Zillow Group by 34.5% in the fourth quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 1,170 shares of the financial services provider's stock valued at $80,000 after acquiring an additional 300 shares during the last quarter. Institutional investors own 71.01% of the company's stock.

Key Zillow Group News

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

• Positive Sentiment: Second-quarter results exceeded estimates. Zillow reported adjusted EPS of $0.52 versus the $0.45 consensus and revenue of $772 million versus expectations of $758.1 million. Revenue increased 18% year over year, providing evidence of continued demand for the company’s services. Zillow Surpasses Q2 Earnings and Revenue Estimates
• Neutral Sentiment: Management is reshaping its leadership structure. CFO Jeremy Hofmann will also become chief operating officer, while Cassandra Knight becomes Zillow’s first chief legal and policy officer. The changes could improve execution, but they also highlight a period of significant organizational change. Zillow Strengthens Executive Leadership Team
• Negative Sentiment: Forward guidance came in below analyst expectations. Zillow forecast third-quarter revenue of $745 million to $760 million, below the $772.3 million consensus, and full-year revenue of $2.9 billion to $3.0 billion, roughly below or at the low end of the $3.0 billion estimate. The soft outlook drove after-hours selling. Zillow Stock Slides on Soft Outlook
• Negative Sentiment: Restructuring costs pushed Zillow to a loss. The company posted a $4 million net loss despite higher revenue, as $36 million in restructuring expenses weighed on results. Zillow also plans to eliminate just over 500 jobs, or about 7% of its workforce, underscoring management’s concern about a flat housing market. Zillow Layoffs Amid Flat Housing Market
• Negative Sentiment: Housing indicators point to a slower second half. July home sales rose 7% year over year, but sharply lower newly pending sales and higher mortgage rates suggest the improvement may not persist. Zacks also downgraded Zillow from “strong buy” to “hold.” Zillow July Market Report
• Negative Sentiment: Several law firms are promoting a securities-fraud class action involving investors who purchased Zillow shares between February 11, 2025 and May 7, 2026. The August 10 lead-plaintiff deadline adds reputational and potential legal-risk overhang, although the allegations have not been proven. Zillow Securities Class Action Deadline

About Zillow Group

Zillow Group, Inc is an online real estate marketplace company that operates a portfolio of consumer-facing websites and mobile apps designed to connect buyers, sellers, renters, homeowners and real estate professionals. The company's platforms aggregate property listings, rental listings, and related information to help users search for homes, estimate property values and connect with agents and service providers. Zillow generates revenue primarily through advertising and lead-generation services for real estate professionals, property managers and mortgage lenders.

Key products and services include the Zillow and Trulia consumer websites and apps, which provide searchable listings, photos, neighborhood data and the company's automated home valuation tool known as the “Zestimate.” Zillow also offers a rentals marketplace, a mortgage marketplace and tools for home buying and selling such as Zillow Premier Agent for agent advertising and leads, as well as ancillary services designed to support transactions, including closing and title-related offerings.

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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