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

Key Points

• Zillow hit a new 52-week low at $41.76 (last $41.72) and was down about 8.2% on heavy volume, trading well below its 50‑day ($56.37) and 200‑day ($69.10) moving averages, with a market cap near $9.9B and a very high P/E of 457.88.
• Analysts are mixed but cautious: the consensus rating is Hold with an average price target of $90.60, though recent actions include Keefe, Bruyette & Woods cutting its target to $65 and upgrades from other firms, reflecting divergent views.
• Zillow reported an EPS miss (Q: $0.39 vs. $0.42 est.) with revenue roughly in line, and insiders have been selling recently (60,801 shares sold in the last 90 days, including the CFO), while insiders still own about 25% of shares.

Zillow Group, Inc. (NASDAQ:Z - Get Free Report)'s stock price reached a new 52-week low during trading on Thursday . The company traded as low as $41.76 and last traded at $41.7240, with a volume of 2180664 shares. The stock had previously closed at $44.90.

Analysts Set New Price Targets

Z has been the subject of a number of research analyst reports. Keefe, Bruyette & Woods lowered their price target on Zillow Group from $80.00 to $65.00 and set a "market perform" rating for the company in a report on Monday, February 9th. Barclays raised shares of Zillow Group from a "strong sell" rating to a "hold" rating in a report on Thursday, January 29th. Zelman & Associates upgraded shares of Zillow Group from a "hold" rating to a "strong-buy" rating in a research note on Thursday, February 12th. Weiss Ratings reissued 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 research report on Wednesday, February 11th. Two investment analysts have rated the stock with a Strong Buy rating, three have given a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $90.60.

Zillow Group Trading Down 8.2%

The firm has a market capitalization of $9.89 billion, a price-to-earnings ratio of 457.88, a PEG ratio of 2.46 and a beta of 2.10. The business has a 50-day moving average price of $56.37 and a two-hundred day moving average price of $69.10.

Zillow Group (NASDAQ:Z - Get Free Report) last issued its quarterly earnings data on Tuesday, February 10th. The financial services provider reported $0.39 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. On average, equities research analysts predict that Zillow Group, Inc. will post 0.32 earnings per share for the current fiscal year.

Insider Buying and Selling at Zillow Group

In other Zillow Group news, CFO Jeremy Hofmann sold 7,786 shares of the business's stock in a transaction dated Wednesday, February 18th. The shares were sold at an average price of $43.73, for a total transaction of $340,481.78. Following the completion of the transaction, the chief financial officer directly owned 57,487 shares of the company's stock, valued at $2,513,906.51. The trade was a 11.93% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Errol G. Samuelson sold 7,015 shares of the company's stock in a transaction dated Thursday, February 12th. The stock was sold at an average price of $44.21, for a total transaction of $310,133.15. Following the completion of the transaction, the insider owned 113,800 shares of the company's stock, valued at approximately $5,031,098. This trade represents a 5.81% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 60,801 shares of company stock valued at $2,683,986. Corporate insiders own 25.03% of the company's stock.

Institutional Investors Weigh In On Zillow Group

A number of hedge funds have recently made changes to their positions in Z. Pittenger & Anderson Inc. increased its position in Zillow Group by 32.8% in the 3rd quarter. Pittenger & Anderson Inc. now owns 546 shares of the financial services provider's stock valued at $42,000 after acquiring an additional 135 shares during the period. Lansforsakringar Fondforvaltning AB publ grew its stake in shares of Zillow Group by 0.3% in the third quarter. Lansforsakringar Fondforvaltning AB publ now owns 48,575 shares of the financial services provider's stock worth $3,743,000 after purchasing an additional 144 shares in the last quarter. Farther Finance Advisors LLC increased its holdings in shares of Zillow Group by 20.5% during the third quarter. Farther Finance Advisors LLC now owns 954 shares of the financial services provider's stock valued at $74,000 after purchasing an additional 162 shares during the period. Cullen Frost Bankers Inc. raised its stake in shares of Zillow Group by 58.6% during the third quarter. Cullen Frost Bankers Inc. now owns 441 shares of the financial services provider's stock valued at $34,000 after purchasing an additional 163 shares in the last quarter. Finally, Doliver Advisors LP raised its stake in shares of Zillow Group by 1.8% during the fourth quarter. Doliver Advisors LP now owns 9,687 shares of the financial services provider's stock valued at $661,000 after purchasing an additional 171 shares in the last quarter. Institutional investors own 71.01% of the company's stock.

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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