Zillow Group (NASDAQ:Z) Hits New 52-Week Low - Should You Sell?

Key Points

• Zillow Group hit a new 52-week low during Thursday trading, falling to as low as $31.48 before closing near $31.96. The decline came amid continued weakness in the shares.
• Legal overhang remains a key pressure point as class-action notices and allegations tied to anticompetitive conduct and regulatory issues continue to circulate. The article suggests these lawsuits may be contributing to investor concern and stock weakness.
• Despite the share-price drop, analysts remain moderately positive overall, with an average rating of “Moderate Buy” and a consensus price target of $76.00. Zillow also recently beat quarterly EPS estimates, though insider selling and lowered analyst targets add caution.

Shares of Zillow Group, Inc. (NASDAQ:Z - Get Free Report) reached a new 52-week low during mid-day trading on Thursday . The company traded as low as $31.48 and last traded at $31.9610, with a volume of 390658 shares trading hands. The stock had previously closed at $32.01.

Zillow Group News Summary

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

• Positive Sentiment: New Zillow analysis showed rental affordability improved in May, with 74% of listings affordable to median-income households and the share of sub-$1,000 rentals at a May high since 2022, which could support the company’s housing-market relevance and brand visibility. Article Title
• Neutral Sentiment: Zacks published a bullish style-score piece calling Zillow a strong growth stock, but it appears more like a model-driven commentary than a company-specific catalyst. Article Title
• Neutral Sentiment: Multiple law firms issued notices and deadline reminders regarding the class action against Zillow, with lead-plaintiff deadlines centered on August 10, 2026; these updates mostly reflect ongoing litigation rather than new business fundamentals. Article Title
• Negative Sentiment: The class action alleges investor harm from Zillow’s anticompetitive agreement and related regulatory issues, keeping legal overhang in focus and likely contributing to the stock’s weakness. Article Title

Analysts Set New Price Targets

A number of equities research analysts have issued reports on Z shares. Deutsche Bank Aktiengesellschaft cut their target price on Zillow Group from $80.00 to $68.00 and set a "buy" rating on the stock in a research note on Friday, May 8th. JPMorgan Chase & Co. cut their target price on Zillow Group from $84.00 to $76.00 and set an "overweight" rating on the stock in a research note on Thursday, May 7th. Wall Street Zen upgraded Zillow Group from a "hold" rating to a "buy" rating in a research note on Saturday, May 9th. Weiss Ratings cut Zillow Group from a "sell (d+)" rating to a "sell (d)" rating in a research note on Friday, May 22nd. Finally, Royal Bank Of Canada cut their target price on Zillow Group from $95.00 to $70.00 and set an "outperform" rating on the stock in a research note on Wednesday, June 10th. Two investment analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, seven have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $76.00.

Zillow Group Stock Up 0.1%

The business's 50 day moving average is $39.20 and its two-hundred day moving average is $51.15. The firm has a market capitalization of $7.33 billion, a P/E ratio of 128.25, a PEG ratio of 1.42 and a beta of 1.97.

Zillow Group (NASDAQ:Z - Get Free Report) last issued its quarterly earnings data on Wednesday, May 6th. The financial services provider reported $0.53 earnings per share for the quarter, beating analysts' consensus estimates 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 analysts' expectations of $705.10 million. As a group, equities analysts anticipate that Zillow Group, Inc. will post 0.9 earnings per share for the current fiscal year.

Insider Buying and Selling at Zillow Group

In related news, Director Erik C. Blachford sold 791 shares of Zillow Group stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $34.80, for a total transaction of $27,526.80. Following the sale, the director directly owned 34,952 shares in the company, valued at $1,216,329.60. The trade was a 2.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Dan Spaulding sold 3,078 shares of Zillow Group stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $37.40, for a total value of $115,117.20. Following the transaction, the insider directly owned 49,696 shares in the company, valued at approximately $1,858,630.40. The trade was a 5.83% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 42,910 shares of company stock valued at $1,605,732. 25.03% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. Lansforsakringar Fondforvaltning AB publ grew its holdings in Zillow Group by 0.3% during the third quarter. Lansforsakringar Fondforvaltning AB publ now owns 48,575 shares of the financial services provider's stock worth $3,743,000 after acquiring an additional 144 shares during the period. Doliver Advisors LP grew its holdings in Zillow Group by 1.8% during the fourth quarter. Doliver Advisors LP now owns 9,687 shares of the financial services provider's stock worth $661,000 after acquiring an additional 171 shares during the period. Empowered Funds LLC grew its holdings in Zillow Group by 4.7% during the first quarter. Empowered Funds LLC now owns 3,822 shares of the financial services provider's stock worth $262,000 after acquiring an additional 171 shares during the period. GAMMA Investing LLC grew its holdings in Zillow Group by 21.4% during the fourth quarter. GAMMA Investing LLC now owns 1,186 shares of the financial services provider's stock worth $81,000 after acquiring an additional 209 shares during the period. Finally, CIBC Asset Management Inc grew its holdings in Zillow Group by 3.0% during the fourth quarter. CIBC Asset Management Inc now owns 7,550 shares of the financial services provider's stock worth $515,000 after acquiring an additional 220 shares during the period. 71.01% of the stock is owned by institutional investors and hedge funds.

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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