Zillow Group (NASDAQ:Z) Hits New 12-Month Low - Time to Sell?

Key Points

• Zillow Group shares hit a new 52-week low, trading as low as $30.08 after closing at $30.31 the previous day, highlighting continued weakness in the stock.
• Despite the price drop, analysts still have a Moderate Buy consensus on Zillow, with a consensus price target of $76.00, even though several firms recently cut their targets.
• The company recently beat quarterly earnings expectations with EPS of $0.53 versus $0.43 expected, while revenue of $708 million also slightly topped estimates.

Zillow Group, Inc. (NASDAQ:Z - Get Free Report)'s stock price reached a new 52-week low during trading on Wednesday . The company traded as low as $30.08 and last traded at $30.50, with a volume of 3409890 shares. The stock had previously closed at $30.31.

Wall Street Analyst Weigh In

Several analysts have weighed in on Z shares. JPMorgan Chase & Co. dropped their price objective on shares of Zillow Group from $84.00 to $76.00 and set an "overweight" rating for the company in a research note on Thursday, May 7th. Deutsche Bank Aktiengesellschaft lowered their target price on shares of Zillow Group from $80.00 to $68.00 and set a "buy" rating on the stock in a report on Friday, May 8th. Weiss Ratings downgraded shares of Zillow Group from a "sell (d+)" rating to a "sell (d)" rating in a research report on Friday, May 22nd. UBS Group cut their price target on Zillow Group from $80.00 to $75.00 and set a "buy" rating for the company in a research note on Tuesday, April 28th. Finally, Wall Street Zen raised Zillow Group from a "hold" rating to a "buy" rating in a research report on Saturday, May 9th. Two equities research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Zillow Group presently has a consensus rating of "Moderate Buy" and a consensus price target of $76.00.

Zillow Group Stock Performance

The stock has a market capitalization of $6.98 billion, a P/E ratio of 122.00, a price-to-earnings-growth ratio of 1.30 and a beta of 1.97. The firm's fifty day simple moving average is $38.44 and its 200 day simple moving average is $49.95.

Zillow Group (NASDAQ:Z - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The financial services provider reported $0.53 earnings per share (EPS) for the quarter, topping 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 business had revenue of $708.00 million for the quarter, compared to analyst estimates of $705.10 million. Analysts anticipate that Zillow Group, Inc. will post 0.9 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Dan Spaulding sold 3,078 shares of Zillow Group 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 $115,117.20. Following the sale, the insider directly owned 49,696 shares in the company, valued at $1,858,630.40. This trade represents a 5.83% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 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 dated Friday, May 22nd. The shares were sold at an average price of $36.54, for a total value of $331,490.88. Following the completion of the sale, the chief executive officer owned 153,699 shares in the company, valued at $5,616,161.46. This trade represents a 5.57% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 42,910 shares of company stock worth $1,605,732. 23.76% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. V Square Quantitative Management LLC bought a new stake in shares of Zillow Group in the 4th quarter valued at $28,000. Flagship Harbor Advisors LLC bought a new position in Zillow Group during the fourth quarter worth $43,000. Clearstead Advisors LLC raised its stake in Zillow Group by 4,119.0% during the third quarter. Clearstead Advisors LLC now owns 886 shares of the financial services provider's stock worth $68,000 after buying an additional 865 shares during the last quarter. IFC & Insurance Marketing Inc. acquired a new position in Zillow Group in the fourth quarter valued at $68,000. Finally, SBI Okasan Asset Management Co.Ltd. bought a new stake in Zillow Group during the fourth quarter valued at $71,000. Institutional investors own 71.01% of the company's stock.

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.

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