Zillow Group (NASDAQ:Z) Price Target Lowered to $50.00 at Keefe, Bruyette & Woods

Key Points

• Keefe, Bruyette & Woods cut Zillow's price target to $50 from $60 and kept a "market perform" rating, implying roughly a 13.7% upside from the current price.
• The analyst consensus is a "Hold" with an average target of $84.50, reflecting divergent views (2 Strong Buy, 2 Buy, 6 Hold, 1 Sell).
• Zillow's latest quarter reported EPS of $0.39 (missed estimates by $0.03) with revenue of $654M (slightly above consensus), but cautious Q2 guidance and declining monthly traffic have raised investor concerns.

Zillow Group (NASDAQ:Z - Get Free Report) had its price objective dropped by stock analysts at Keefe, Bruyette & Woods from $60.00 to $50.00 in a research report issued on Thursday,Benzinga reports. The firm currently has a "market perform" rating on the financial services provider's stock. Keefe, Bruyette & Woods' price target points to a potential upside of 13.67% from the stock's current price.

A number of other analysts also recently issued reports on the stock. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Zillow Group in a report on Wednesday, January 21st. Mizuho cut shares of Zillow Group from a "strong-buy" rating to a "hold" rating in a research report on Thursday, January 8th. Needham & Company LLC reiterated a "hold" rating on shares of Zillow Group in a research report on Wednesday, February 11th. Zelman & Associates upgraded shares of Zillow Group from a "hold" rating to a "strong-buy" rating in a research report on Thursday, February 12th. Finally, Barclays upgraded shares of Zillow Group from a "strong sell" rating to a "hold" rating in a research report on Thursday, January 29th. Two equities research analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $84.50.

Zillow Group Price Performance

NASDAQ:Z traded down $0.54 during trading hours on Thursday, hitting $43.99. The stock had a trading volume of 3,516,775 shares, compared to its average volume of 4,071,264. Zillow Group has a one year low of $39.05 and a one year high of $93.88. The firm has a market capitalization of $10.55 billion, a price-to-earnings ratio of 488.97, a P/E/G ratio of 2.13 and a beta of 2.07. The company has a 50 day simple moving average of $43.70 and a two-hundred day simple moving average of $58.92.

Zillow Group (NASDAQ:Z - Get Free Report) last posted its quarterly earnings data on Tuesday, February 10th. The financial services provider reported $0.39 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.42 by ($0.03). Zillow Group had a return on equity of 0.56% and a net margin of 0.89%.The company had revenue of $654.00 million for the quarter, compared to the consensus estimate of $650.40 million. Equities research analysts anticipate that Zillow Group will post 0.82 earnings per share for the current year.

Insider Activity

In other news, CTO David A. Beitel sold 3,966 shares of the company's stock in a transaction dated Thursday, February 12th. The shares were sold at an average price of $44.22, for a total transaction of $175,376.52. Following the completion of the transaction, the chief technology officer directly owned 136,690 shares of the company's stock, valued at approximately $6,044,431.80. This represents a 2.82% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Errol G. Samuelson sold 7,015 shares of the company's stock in a transaction dated Thursday, February 12th. The shares were sold at an average price of $44.21, for a total transaction of $310,133.15. Following the transaction, the insider directly owned 113,800 shares of the company's stock, valued at approximately $5,031,098. This trade represents a 5.81% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 60,801 shares of company stock valued at $2,683,986. 25.03% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Zillow Group

Several hedge funds and other institutional investors have recently modified their holdings of Z. Empowered Funds LLC increased its position in shares of Zillow Group by 4.7% during the first quarter. Empowered Funds LLC now owns 3,822 shares of the financial services provider's stock valued at $262,000 after buying an additional 171 shares during the period. Intech Investment Management LLC raised its stake in Zillow Group by 21.7% during the first quarter. Intech Investment Management LLC now owns 20,518 shares of the financial services provider's stock valued at $1,407,000 after buying an additional 3,653 shares during the last quarter. American Century Companies Inc. raised its position in shares of Zillow Group by 1.6% in the 2nd quarter. American Century Companies Inc. now owns 23,064 shares of the financial services provider's stock worth $1,616,000 after purchasing an additional 362 shares during the last quarter. Northwestern Mutual Wealth Management Co. grew its position in Zillow Group by 186.3% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,678 shares of the financial services provider's stock valued at $118,000 after purchasing an additional 1,092 shares during the last quarter. Finally, First Trust Advisors LP raised its holdings in Zillow Group by 1,895.4% in the second quarter. First Trust Advisors LP now owns 128,362 shares of the financial services provider's stock worth $8,992,000 after buying an additional 121,929 shares during the last quarter. Hedge funds and other institutional investors own 71.01% of the company's stock.

Zillow Group News Summary

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

• Positive Sentiment: Q1 results beat consensus on both EPS and revenue, driven by stronger for-sale and rentals activity; earnings coverage highlights the quarter as a beat. Zillow Q1 Earnings & Revenues Top Estimates on Strong For Sale Growth
• Positive Sentiment: Mortgage originations nearly doubled year-over-year and rentals growth accelerated, signaling multiple revenue levers beyond search. Zillow (Z) Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: Company narrative gaining credibility: management emphasizes AI-driven productivity gains and new agent/consumer tools that analysts say could support longer-term margin expansion. Zillow Group leans into AI as revenue climbs 18% in flat housing market
• Neutral Sentiment: Zillow’s April Market Report shows inventory building and softer buyer demand — a mixed housing backdrop that could both pressure volumes and create opportunities for market-share gains. Higher rates stalled the sales recovery, Zillow's April Market Report shows
• Neutral Sentiment: Analysts and outlets are re-assessing Z’s valuation after a year of share weakness — debate centers on growth cadence and whether current multiples price in the AI-driven opportunity. Assessing Zillow Group (ZG) Valuation After A Year Of Share Price Weakness
• Negative Sentiment: Management’s Q2 revenue guidance ($750M–$765M) was viewed as cautious relative to consensus, which drove the market’s focus on the outlook despite the Q1 beat. Zillow stock dips despite Q1 beat as Q2 guidance fails to impress
• Negative Sentiment: Monthly unique-user traffic fell (~3% decline reported), a potential headwind for ad/partner revenue and monetization trends. Zillow Posts Higher Profit, Lower Traffic in First Quarter
• Negative Sentiment: Multiple law firms (Rosen, Pomerantz) have opened securities investigations alleging potentially misleading statements, introducing legal risk and investor uncertainty. ROSEN Encourages Zillow Group Investors to Inquire About Securities Class Action Investigation INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Zillow Group

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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