Zillow Group (NASDAQ:ZG) Given Outperform Rating at Royal Bank Of Canada

Key Points

• Royal Bank of Canada reiterated its outperform rating on Zillow Group and set a $95 price target, implying about 163.9% upside from the current share price.
• Zillow recently reported stronger-than-expected quarterly results, with earnings of $0.53 per share versus $0.43 expected and revenue of $708 million, up 18.4% from a year earlier.
• The stock has been under pressure despite analyst support, trading around $36 near its 52-week low, while recent headlines also highlight legal and competitive risks including securities-fraud investigations and listing-feed disputes.

Zillow Group (NASDAQ:ZG - Get Free Report)'s stock had its "outperform" rating restated by stock analysts at Royal Bank Of Canada in a research report issued to clients and investors on Thursday,Benzinga reports. They presently have a $95.00 price target on the technology company's stock. Royal Bank Of Canada's price objective would suggest a potential upside of 163.90% from the stock's current price.

ZG has been the topic of several other research reports. Zacks Research lowered Zillow Group from a "strong-buy" rating to a "hold" rating in a research note on Friday, May 15th. Susquehanna set a $50.00 price objective on Zillow Group in a research note on Thursday, February 12th. Wells Fargo & Company decreased their price target on 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. Cantor Fitzgerald decreased their price target on Zillow Group from $56.00 to $46.00 and set a "neutral" rating on the stock in a research note on Wednesday, March 25th. Finally, Citigroup decreased their price target on Zillow Group from $78.00 to $68.00 and set a "buy" rating on the stock in a research note on Monday, May 11th. Thirteen equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Hold" and an average price target of $71.24.

Zillow Group Price Performance

Zillow Group stock traded down $0.92 during trading hours on Thursday, hitting $36.00. The stock had a trading volume of 403,437 shares, compared to its average volume of 1,111,025. The stock has a market capitalization of $8.24 billion, a price-to-earnings ratio of 144.01, a PEG ratio of 1.56 and a beta of 2.04. Zillow Group has a 1-year low of $35.11 and a 1-year high of $90.22. The stock's fifty day moving average is $42.45 and its two-hundred day moving average is $55.72.

Zillow Group (NASDAQ:ZG - Get Free Report) last posted its earnings results on Wednesday, May 6th. The technology company reported $0.53 earnings per share for the quarter, beating the consensus estimate of $0.43 by $0.10. The company had revenue of $708.00 million for the quarter, compared to analyst estimates of $705.17 million. Zillow Group had a return on equity of 1.41% and a net margin of 2.27%.Zillow Group's revenue was up 18.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.41 earnings per share. As a group, sell-side analysts anticipate that Zillow Group will post 0.9 EPS for the current year.

Insider Buying and Selling

In other news, insider Dan Spaulding sold 3,078 shares of the firm's stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $37.40, for a total value of $115,117.20. Following the transaction, the insider directly owned 49,696 shares in the company, valued at $1,858,630.40. This trade represents a 5.83% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 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, insider Errol G. Samuelson sold 2,939 shares of the firm's stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $37.97, for a total value of $111,593.83. Following the completion of the transaction, the insider owned 134,039 shares in the company, valued at approximately $5,089,460.83. This trade represents a 2.15% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 33,047 shares of company stock worth $1,246,715. Corporate insiders own 29.88% of the company's stock.

Institutional Investors Weigh In On Zillow Group

Hedge funds have recently modified their holdings of the stock. Arax Advisory Partners raised its holdings in shares of Zillow Group by 402.3% during the 4th quarter. Arax Advisory Partners now owns 442 shares of the technology company's stock valued at $30,000 after buying an additional 354 shares during the period. Smartleaf Asset Management LLC raised its holdings in shares of Zillow Group by 78.9% during the 3rd quarter. Smartleaf Asset Management LLC now owns 424 shares of the technology company's stock valued at $33,000 after buying an additional 187 shares during the period. First Command Advisory Services Inc. purchased a new stake in shares of Zillow Group during the 4th quarter valued at about $34,000. EverSource Wealth Advisors LLC raised its holdings in shares of Zillow Group by 183.6% during the 1st quarter. EverSource Wealth Advisors LLC now owns 984 shares of the technology company's stock valued at $41,000 after buying an additional 637 shares during the period. Finally, Fifth Third Bancorp raised its holdings in shares of Zillow Group by 990.3% during the 1st quarter. Fifth Third Bancorp now owns 1,014 shares of the technology company's stock valued at $42,000 after buying an additional 921 shares during the period. 20.32% of the stock is currently owned by hedge funds and other institutional investors.

Zillow Group News Summary

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

• Positive Sentiment: Zillow’s own market data shows home sales are rebounding in supply-rich markets like Austin, where inventory is 52% above pre-pandemic averages and homes are selling in about 17 days, suggesting healthier transaction activity that could support Zillow’s housing traffic and revenue. Home sales rebound where supply has surged
• Positive Sentiment: Jefferies said stronger April housing data points to improving transaction growth in the second quarter and nearly 6% growth in housing transaction value, which could be a tailwind for Zillow Group’s core real-estate platform. Zillow seen benefiting from stronger April housing data, says Jefferies
• Neutral Sentiment: Zacks highlighted Zillow Group (ZG) as a top-ranked growth stock, a sentiment that may support the bull case but does not appear to be tied to a fresh operational catalyst. Zillow Group (ZG) is a Top-Ranked Growth Stock: Should You Buy?
• Negative Sentiment: Multiple law firms announced or continued securities-fraud investigations into Zillow Group, adding legal uncertainty and raising the risk of distraction, costs, or potential claims against the company. Securities Fraud Investigation Into Zillow Group, Inc. (Z, ZG) Continues
• Negative Sentiment: A Midwest listings site suspended its data feed to Zillow, and a Chicago-area listing dispute suggests friction with industry partners that could hurt listing coverage and platform utility. Midwest listings site suspends its data feed to Zillow
• Negative Sentiment: Separately, reporting tied Zillow’s drop to the FTC suit and the Chicago listing dispute, reinforcing concerns that regulatory and competitive pressures are weighing on the stock. Zillow Group (ZG) Is Down 8.6% After FTC Suit And Chicago Listing Dispute Hit Core Model

About Zillow Group

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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