Zillow Group (NASDAQ:Z) Raised to "Strong-Buy" at Zacks Research

Key Points

• Zacks Research upgraded Zillow to a "Strong-Buy", joining some other upgrades but analysts remain mixed overall with a consensus rating of "Moderate Buy" and a consensus target price of $79.75.
• Q1 results beat expectations—Zillow reported $0.53 EPS vs $0.43 est. and $708M revenue, but gave cautious Q2 revenue guidance (~$750–$765M) and saw ~3% monthly traffic decline, producing mixed near‑term signals.
• Insider selling and ownership: several executives (including the CFO) sold shares recently and insiders have sold 60,801 shares (~$2.68M) over the last three months, while insiders still own about 25.03% of the company.

Zillow Group (NASDAQ:Z - Get Free Report) was upgraded by equities researchers at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued on Wednesday,Zacks.com reports.

Several other brokerages have also commented on Z. Zelman & Associates upgraded Zillow Group from a "hold" rating to a "strong-buy" rating in a research report on Thursday, February 12th. Needham & Company LLC reiterated a "hold" rating on shares of Zillow Group in a research report on Wednesday, February 11th. Keefe, Bruyette & Woods reduced their price objective on Zillow Group from $60.00 to $50.00 and set a "market perform" rating on the stock in a research report on Thursday. Barclays upgraded Zillow Group from a "strong sell" rating to a "hold" rating in a report on Thursday, January 29th. Finally, Mizuho cut Zillow Group from a "strong-buy" rating to a "hold" rating in a report on Thursday, January 8th. Three research analysts have rated the stock with a Strong Buy rating, two have given a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Zillow Group has a consensus rating of "Moderate Buy" and a consensus target price of $79.75.

Zillow Group Trading Down 1.9%

Shares of Zillow Group stock opened at $43.68 on Wednesday. The firm has a market capitalization of $10.48 billion, a PE ratio of 174.72, a price-to-earnings-growth ratio of 2.18 and a beta of 2.07. The business's 50-day moving average price is $43.70 and its 200-day moving average price is $58.72. Zillow Group has a 12 month low of $39.05 and a 12 month high of $93.88.

Zillow Group (NASDAQ:Z - Get Free Report) last announced its quarterly earnings data on Wednesday, May 6th. The financial services provider reported $0.53 EPS for the quarter, beating the consensus estimate of $0.43 by $0.10. The firm had revenue of $708.00 million for the quarter, compared to analyst estimates of $705.10 million. Zillow Group had a return on equity of 1.37% and a net margin of 2.27%. As a group, analysts predict that Zillow Group will post 0.82 earnings per share for the current fiscal year.

Insider Activity at Zillow Group

In related news, CFO Jeremy Hofmann sold 7,786 shares of the stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $43.73, for a total transaction of $340,481.78. Following the completion of the sale, the chief financial officer directly owned 57,487 shares in the company, valued at $2,513,906.51. This represents a 11.93% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, General Counsel Bradley D. Owens sold 2,602 shares of the stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $44.42, for a total value of $115,580.84. Following the sale, the general counsel owned 33,355 shares of the company's stock, valued at $1,481,629.10. This represents a 7.24% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 60,801 shares of company stock worth $2,683,986 over the last three months. Corporate insiders own 25.03% of the company's stock.

Institutional Investors Weigh In On Zillow Group

Institutional investors and hedge funds have recently bought and sold shares of the business. Root Financial Partners LLC purchased a new stake in Zillow Group in the 3rd quarter worth approximately $27,000. Pilgrim Partners Asia Pte Ltd purchased a new stake in Zillow Group in the 3rd quarter worth approximately $29,000. V Square Quantitative Management LLC purchased a new stake in Zillow Group in the 4th quarter worth approximately $28,000. Cullen Frost Bankers Inc. lifted its holdings in Zillow Group by 58.6% in the 3rd quarter. Cullen Frost Bankers Inc. now owns 441 shares of the financial services provider's stock worth $34,000 after buying an additional 163 shares during the period. Finally, Pittenger & Anderson Inc. lifted its holdings in Zillow Group by 32.8% in the 3rd quarter. Pittenger & Anderson Inc. now owns 546 shares of the financial services provider's stock worth $42,000 after buying an additional 135 shares during the period. Hedge funds and other institutional investors own 71.01% of the company's stock.

Key Stories Impacting Zillow Group

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

• Positive Sentiment: Zillow posted a profitable Q1 (reported $46M net income) with revenue roughly in line to slightly above consensus and an EPS beat, highlighting strength in Rentals and mortgage origination growth — a near-term fundamental positive. Read More.
• Positive Sentiment: The company emphasized AI-driven product expansion (new AI tools for agents, property managers and consumers) and cited revenue gains in a flat housing market, underscoring its pivot to higher‑value workflow tools that could lift long‑term monetization. Read More.
• Neutral Sentiment: Zillow gave Q2 revenue guidance of roughly $750M–$765M, which sits close to but slightly below some analyst models; that cautious outlook has tempered enthusiasm despite the Q1 beat. Read More.
• Negative Sentiment: Monthly site traffic fell (~3% to ~220M average monthly uniques), raising concerns about user engagement and future ad/search monetization. Read More.
• Negative Sentiment: Analysts trimmed targets after the report: JPMorgan cut its target (still an overweight rating) and Keefe, Bruyette & Woods lowered theirs — mixed analyst moves increase short‑term volatility. Read More.
• Negative Sentiment: Multiple law firms (Rosen, Pomerantz) have announced investigations into possible securities claims, creating legal overhang and downside risk for investors. Read More.

Zillow Group Company Profile

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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