Zillow Group (NASDAQ:ZG) CAO Sells $39,281.66 in Stock

Key Points

• Zillow CAO Jennifer Rock sold 1,034 shares on May 14 at an average price of $37.99, totaling about $39,282. The company said the sale was to cover tax withholding tied to vesting equity awards.
• Zillow recently beat earnings expectations, reporting Q1 EPS of $0.53 versus the $0.43 consensus estimate, with revenue of $708 million, up 18.4% year over year. The company also said it expects full-year EPS of 0.82 based on analyst forecasts.
• Wall Street sentiment has cooled somewhat, as several firms cut their price targets even though the stock still carries a “Moderate Buy” consensus. The article also notes recent institutional buying and a cluster of insider sales that may weigh on investor sentiment.

Zillow Group, Inc. (NASDAQ:ZG - Get Free Report) CAO Jennifer Rock sold 1,034 shares of the business's stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $37.99, for a total transaction of $39,281.66. Following the transaction, the chief accounting officer directly owned 59,742 shares of the company's stock, valued at approximately $2,269,598.58. This trade represents a 1.70% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Zillow Group Stock Performance

Shares of ZG traded up $0.20 during midday trading on Friday, hitting $38.06. 1,220,724 shares of the stock traded hands, compared to its average volume of 1,107,114. Zillow Group, Inc. has a 1-year low of $37.26 and a 1-year high of $90.22. The firm has a market capitalization of $8.71 billion, a PE ratio of 152.24, a price-to-earnings-growth ratio of 1.82 and a beta of 2.04. The business's 50 day moving average price is $43.15 and its two-hundred day moving average price is $56.67.

Zillow Group (NASDAQ:ZG - Get Free Report) last announced its quarterly earnings results on Wednesday, May 6th. The technology company reported $0.53 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.43 by $0.10. Zillow Group had a net margin of 2.27% and a return on equity of 1.41%. The company had revenue of $708.00 million during the quarter, compared to the consensus estimate of $705.17 million. During the same quarter in the previous year, the company posted $0.41 earnings per share. The company's revenue for the quarter was up 18.4% compared to the same quarter last year. As a group, equities research analysts forecast that Zillow Group, Inc. will post 0.82 EPS for the current fiscal year.

Analysts Set New Price Targets

ZG has been the topic of a number of recent analyst reports. Piper Sandler cut their price objective on shares of Zillow Group from $70.00 to $55.00 and set an "overweight" rating on the stock in a research note on Thursday, May 7th. Wells Fargo & Company cut their price objective on shares of Zillow Group from $60.00 to $45.00 and set an "equal weight" rating on the stock in a research note on Thursday, May 7th. Barclays cut their price objective on shares of Zillow Group from $58.00 to $54.00 and set an "equal weight" rating on the stock in a research note on Friday, May 8th. Royal Bank Of Canada restated an "outperform" rating and set a $95.00 price objective on shares of Zillow Group in a research note on Tuesday, April 28th. Finally, Citigroup cut their price objective on shares of Zillow Group from $78.00 to $68.00 and set a "buy" rating on the stock in a research note on Monday. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $71.24.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of ZG. AQR Capital Management LLC grew its holdings 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 acquiring an additional 3,717 shares during the period. Millennium Management LLC grew its holdings in Zillow Group by 110.8% during the first quarter. Millennium Management LLC now owns 290,999 shares of the technology company's stock worth $19,456,000 after acquiring an additional 152,955 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in Zillow Group by 7.0% during the first 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 acquiring an additional 5,737 shares during the period. JPMorgan Chase & Co. grew its holdings in Zillow Group by 5.8% during the second quarter. JPMorgan Chase & Co. now owns 21,093 shares of the technology company's stock worth $1,445,000 after acquiring an additional 1,150 shares during the period. Finally, Prudential Financial Inc. grew its holdings in Zillow Group by 16.3% during the second quarter. Prudential Financial Inc. now owns 7,933 shares of the technology company's stock worth $543,000 after acquiring an additional 1,110 shares during the period. 20.32% of the stock is owned by institutional investors and hedge funds.

Zillow Group News Roundup

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

• Positive Sentiment: Zillow highlighted survey results showing most prospective home sellers want broad public exposure rather than private listing networks. The company said 85% of soon-to-be sellers are more likely to hire an agent who can pre-market to the broadest online audience, reinforcing Zillow’s core pitch that open-market listings benefit sellers. Article Title
• Positive Sentiment: Zillow also emphasized its data showing sellers lose money in same-agent dual agency deals and off-MLS listings, a message that could support demand for Zillow’s public-listing ecosystem and advertising tools. Article Title
• Neutral Sentiment: JPMorgan/other analyst commentary pointed to a lower price target for Zillow Group, suggesting Wall Street expectations have softened and may be limiting upside sentiment. Article Title
• Negative Sentiment: Multiple Zillow insiders, including the CEO, COO, CTO, CAO, general counsel, and another executive, sold shares this week. The company said the sales were mainly to cover tax withholding tied to vesting equity awards and some were made under a 10b5-1 plan, but the cluster of insider selling can still create a bearish overhang for investors. Article Title
• Negative Sentiment: Rosen Law Firm said it is investigating potential securities claims against Zillow, adding legal uncertainty that may be a headwind for the stock. Article Title

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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