Zillow Group (NASDAQ:Z) Sets New 12-Month Low - What's Next?

Key Points

• Zillow Group shares hit a new 52-week low, trading as low as $34.16 and closing near $34.95, continuing a recent slide that left the stock well below its 50-day and 200-day moving averages.
• Analysts remain mixed, but several recently cut price targets or downgraded the stock; the consensus rating is still “Moderate Buy” with a consensus target price of $77.00.
• The company beat quarterly earnings and revenue estimates in its latest report, while insiders have been selling shares and hedge funds continue to hold a large majority of the stock.

Shares of Zillow Group, Inc. (NASDAQ:Z - Get Free Report) reached a new 52-week low on Monday . The company traded as low as $34.16 and last traded at $34.9510, with a volume of 258904 shares traded. The stock had previously closed at $35.06.

Analyst Ratings Changes

A number of research firms have recently commented on Z. JPMorgan Chase & Co. cut their price target on shares of Zillow Group from $84.00 to $76.00 and set an "overweight" rating on the stock in a report on Thursday, May 7th. Keefe, Bruyette & Woods lowered their price objective on shares of Zillow Group from $60.00 to $50.00 and set a "market perform" rating for the company in a research report on Thursday, May 7th. Weiss Ratings downgraded shares of Zillow Group from a "sell (d+)" rating to a "sell (d)" rating in a research note on Friday, May 22nd. Zacks Research downgraded shares of Zillow Group from a "strong-buy" rating to a "hold" rating in a research note on Thursday. Finally, Zelman & Associates raised Zillow Group from a "hold" rating to a "strong-buy" rating in a research note on Thursday, February 12th. Two equities research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $77.00.

Zillow Group Stock Down 0.3%

The business's 50 day moving average is $40.42 and its 200 day moving average is $53.27. The company has a market cap of $8.00 billion, a P/E ratio of 139.91, a P/E/G ratio of 1.50 and a beta of 1.97.

Zillow Group (NASDAQ:Z - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The financial services provider reported $0.53 EPS for the quarter, topping the consensus estimate of $0.43 by $0.10. Zillow Group had a return on equity of 1.41% and a net margin of 2.27%.The firm had revenue of $708.00 million during the quarter, compared to analyst estimates of $705.10 million. As a group, equities research analysts forecast that Zillow Group, Inc. will post 0.9 EPS for the current year.

Insider Transactions at Zillow Group

In related news, General Counsel Bradley D. Owens sold 3,364 shares of the business's stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $37.23, for a total transaction of $125,241.72. Following the completion of the transaction, the general counsel owned 65,245 shares in the company, valued at $2,429,071.35. The trade was a 4.90% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 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, CFO Jeremy Hofmann sold 5,501 shares of the 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 $205,737.40. Following the sale, the chief financial officer directly owned 68,315 shares of the company's stock, valued at $2,554,981. The trade was a 7.45% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have sold 42,119 shares of company stock worth $1,578,206. 25.03% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Zillow Group

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Empowered Funds LLC grew its stake 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 worth $262,000 after acquiring an additional 171 shares during the last quarter. Intech Investment Management LLC raised its position in shares of Zillow Group by 21.7% in the 1st quarter. Intech Investment Management LLC now owns 20,518 shares of the financial services provider's stock valued at $1,407,000 after purchasing an additional 3,653 shares during the last quarter. American Century Companies Inc. boosted its stake in 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 in the last quarter. Northwestern Mutual Wealth Management Co. boosted its stake 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 worth $118,000 after purchasing an additional 1,092 shares in the last quarter. Finally, First Trust Advisors LP grew its position in Zillow Group by 1,895.4% during the 2nd quarter. First Trust Advisors LP now owns 128,362 shares of the financial services provider's stock worth $8,992,000 after purchasing an additional 121,929 shares during the last quarter. 71.01% of the stock is currently 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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