Zillow Group (NASDAQ:Z) Releases Earnings Results

Key Points

• Zillow reported an outsized quarterly EPS of $999.00, well above analysts' consensus estimate of $0.43.
• Shares rose about 2.3% to $44.53; the company has a market cap of $10.68 billion and a stretched P/E of 494.8, while analysts' consensus rating is Hold with an average 12‑month price target of $88.25.
• Insider selling accelerated—CEO Jeremy Wacksman sold 13,661 shares and insiders disposed of 60,801 shares (~$2.68M) over the last quarter, though insiders still own 23.76% of the stock.

Zillow Group (NASDAQ:Z - Get Free Report) posted its quarterly earnings results on Wednesday. The financial services provider reported $999.00 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.43 by $998.57, Zacks reports. Zillow Group had a return on equity of 0.56% and a net margin of 0.89%.

Zillow Group Trading Up 2.3%

Shares of Z traded up $0.99 during trading hours on Wednesday, reaching $44.53. The stock had a trading volume of 4,465,185 shares, compared to its average volume of 4,076,692. Zillow Group has a 12 month low of $39.05 and a 12 month high of $93.88. The firm has a 50-day simple moving average of $43.66 and a 200 day simple moving average of $59.13. The company has a market capitalization of $10.68 billion, a price-to-earnings ratio of 494.83, a P/E/G ratio of 2.16 and a beta of 2.07.

Wall Street Analyst Weigh In

A number of research firms have issued reports on Z. Zelman & Associates upgraded Zillow Group from a "hold" rating to a "strong-buy" rating in a report on Thursday, February 12th. Mizuho cut Zillow Group from a "strong-buy" rating to a "hold" rating in a report on Thursday, January 8th. Barclays upgraded Zillow Group from a "strong sell" rating to a "hold" rating in a report on Thursday, January 29th. Weiss Ratings restated a "sell (d-)" rating on shares of Zillow Group in a report on Wednesday, January 21st. Finally, Needham & Company LLC restated a "hold" rating on shares of Zillow Group in a report on Wednesday, February 11th. Two analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $88.25.

Insider Buying and Selling

In related news, CEO Jeremy Wacksman sold 13,661 shares of the stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $44.25, for a total value of $604,499.25. Following the transaction, the chief executive officer directly owned 116,322 shares in the company, valued at $5,147,248.50. This trade represents a 10.51% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Errol G. Samuelson sold 7,015 shares of the stock in a transaction on Thursday, February 12th. The stock was sold at an average price of $44.21, for a total value of $310,133.15. Following the completion of the transaction, the insider owned 113,800 shares in the company, valued at approximately $5,031,098. This represents a 5.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 60,801 shares of company stock worth $2,683,986 over the last quarter. Corporate insiders own 23.76% 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 stock. IFC & Insurance Marketing Inc. purchased a new stake in Zillow Group in the 4th quarter valued at $68,000. Advisory Services Network LLC purchased a new stake in Zillow Group in the 3rd quarter valued at $99,000. Northwestern Mutual Wealth Management Co. raised its position in Zillow Group by 186.3% in 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 buying an additional 1,092 shares during the last quarter. Kestra Advisory Services LLC purchased a new stake in Zillow Group in the 4th quarter valued at $153,000. Finally, Lido Advisors LLC purchased a new stake in Zillow Group in the 3rd quarter valued at $212,000. 71.01% of the stock is owned by hedge funds and other institutional investors.

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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