Zillow Group (NASDAQ:ZG) Announces Earnings Results, Misses Estimates By $0.24 EPS

Key Points

• Zillow Group reported quarterly EPS of $0.20, missing the $0.44 consensus estimate by $0.24. The company posted a 2.27% net margin and 1.41% return on equity.
• Shares fell 0.4% to $36.89, while Zillow carries a market capitalization of $8.44 billion and a high price-to-earnings ratio of 147.56.
• Investors face additional uncertainty from more than 500 job cuts, securities-fraud lawsuits tied to alleged anticompetitive conduct, and recent insider selling, although analysts maintain a consensus “Moderate Buy” rating with a $67.90 price target.

Zillow Group (NASDAQ:ZG - Get Free Report) announced its quarterly earnings data on Wednesday. The technology company reported $0.20 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.44 by ($0.24), Zacks reports. Zillow Group had a net margin of 2.27% and a return on equity of 1.41%.

Zillow Group Trading Down 0.4%

Shares of ZG traded down $0.14 during trading hours on Wednesday, reaching $36.89. The company had a trading volume of 1,395,993 shares, compared to its average volume of 1,185,493. The firm has a 50 day simple moving average of $33.22 and a 200-day simple moving average of $42.05. The company has a market capitalization of $8.44 billion, a price-to-earnings ratio of 147.56, a PEG ratio of 1.53 and a beta of 1.95. Zillow Group has a 12-month low of $29.03 and a 12-month high of $90.22.

Insider Activity

In other Zillow Group news, General Counsel Bradley D. Owens sold 3,364 shares of the company's stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $37.23, for a total transaction of $125,241.72. Following the transaction, the general counsel directly owned 65,245 shares in the company, valued at approximately $2,429,071.35. This represents a 4.90% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed 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, Director Erik C. Blachford sold 791 shares of the stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $34.80, for a total transaction of $27,526.80. Following the completion of the transaction, the director directly owned 34,952 shares of the company's stock, valued at approximately $1,216,329.60. This trade represents a 2.21% decrease in their ownership of the stock. 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. Insiders have sold 42,910 shares of company stock valued at $1,605,732 in the last quarter. Insiders own 29.88% of the company's stock.

Hedge Funds Weigh In On Zillow Group

Several hedge funds and other institutional investors have recently bought and sold shares of ZG. AQR Capital Management LLC boosted its position in Zillow Group by 40.5% during the first quarter. AQR Capital Management LLC now owns 12,890 shares of the technology company's stock worth $862,000 after purchasing an additional 3,717 shares in the last quarter. Millennium Management LLC increased its position in shares of Zillow Group by 110.8% in the first quarter. Millennium Management LLC now owns 290,999 shares of the technology company's stock valued at $19,456,000 after buying an additional 152,955 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of Zillow Group by 7.0% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 87,912 shares of the technology company's stock worth $5,878,000 after buying an additional 5,737 shares during the last quarter. JPMorgan Chase & Co. raised its stake in shares of Zillow Group by 5.8% during the 2nd quarter. JPMorgan Chase & Co. now owns 21,093 shares of the technology company's stock worth $1,445,000 after buying an additional 1,150 shares during the last quarter. Finally, Prudential Financial Inc. boosted its position in shares of Zillow Group by 16.3% in the 2nd quarter. Prudential Financial Inc. now owns 7,933 shares of the technology company's stock worth $543,000 after buying an additional 1,110 shares in the last quarter. 20.32% of the stock is owned by institutional investors and hedge funds.

Zillow Group News Summary

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

• Positive Sentiment: KeyBanc maintained its Buy rating on Zillow Group Class A shares, signaling continued confidence in the company’s longer-term outlook despite recent volatility. KeyBanc Sticks to Their Buy Rating for Zillow Group Class A
• Neutral Sentiment: KeyCorp issued a pessimistic stock-price forecast for Zillow Group. The report adds caution from the analyst community, although the specific forecast details were not provided in the article. KeyCorp Issues Pessimistic Forecast for Zillow Group Stock Price
• Negative Sentiment: Zillow eliminated more than 500 jobs, or roughly 7% of its workforce. The cuts, described as the company’s largest layoff of the year, occurred immediately before its quarterly earnings report and may raise concerns about operating conditions and growth prospects, even though they could reduce costs. Zillow cuts more than 500 jobs in its largest layoff of the year
• Negative Sentiment: Multiple law firms are promoting securities-fraud class actions against Zillow Group (ZG and Z) over alleged disclosures related to an anticompetitive agreement with Redfin and associated regulatory risks. The allegations followed a previously reported stock decline of more than 16%, and investors have until August 10, 2026, to seek lead-plaintiff status. The litigation could create legal costs, reputational damage, and additional regulatory uncertainty. Zillow Anticompetitive Agreement Leads to Stock Drop and Securities Fraud Class Action Rosen Zillow Securities Class Action Deadline

Analyst Upgrades and Downgrades

ZG has been the topic of several analyst reports. Sanford C. Bernstein raised shares of Zillow Group from an "outperform" rating to a "buy" rating in a report on Tuesday, May 26th. Royal Bank Of Canada cut their price target on shares of Zillow Group to $70.00 and set an "outperform" rating for the company in a report on Wednesday, June 10th. UBS Group reduced their price objective on shares of Zillow Group from $75.00 to $50.00 and set a "buy" rating for the company in a research report on Friday, July 31st. Barclays lowered their price objective on Zillow Group from $58.00 to $54.00 and set an "equal weight" rating on the stock in a report on Friday, May 8th. Finally, Wells Fargo & Company increased their target price on Zillow Group from $45.00 to $46.00 and gave the stock an "equal weight" rating in a research note on Tuesday, July 7th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $67.90.

Zillow Group Company Profile

Zillow Group NASDAQ: ZG is a U.S.-based online real estate marketplace that connects consumers, real estate professionals and mortgage lenders through a suite of digital products and advertising services. Founded in 2006 by Rich Barton and Lloyd Frink and headquartered in Seattle, Washington, the company operates a portfolio of consumer-facing brands and tools designed to simplify home search, rental discovery, valuation and mortgage shopping.

Zillow's core products include its consumer websites and mobile apps that list homes for sale and rent, the Zestimate automated home value estimate, and marketplaces that connect buyers and renters with agents and lenders.

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