Zillow Group (NASDAQ:ZG) Hits New 52-Week Low - Time to Sell?

Key Points

• Zillow Group shares hit a new 52-week low, trading as low as $38.30 after closing at $39.84 the prior day. The stock’s slide comes despite recent quarterly results that slightly beat analyst expectations.
• Several analysts have cut price targets on Zillow, with Mizuho, Barclays, Canaccord Genuity, and Wells Fargo all lowering estimates while maintaining neutral or hold-like ratings. The consensus analyst view remains a Moderate Buy, with an average price target of $71.24.
• Zillow reported Q1 earnings of $0.53 per share on revenue of $708 million, both above expectations, and revenue rose 18.4% year over year. Even so, the stock remains under pressure, with insider selling and a share price well below its 50-day and 200-day moving averages.

Shares of Zillow Group, Inc. (NASDAQ:ZG - Get Free Report) reached a new 52-week low on Wednesday . The stock traded as low as $38.30 and last traded at $39.3180, with a volume of 99233 shares trading hands. The stock had previously closed at $39.84.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on ZG shares. Mizuho reduced their target price on shares of Zillow Group from $65.00 to $53.00 and set a "neutral" rating for the company in a research note on Thursday, May 7th. Barclays dropped their price objective on 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. Weiss Ratings upgraded shares of Zillow Group from a "sell (d)" rating to a "sell (d+)" rating in a research note on Thursday, May 7th. Canaccord Genuity Group decreased their price objective on Zillow Group from $72.00 to $52.00 and set a "hold" rating for the company in a research note on Thursday, May 7th. Finally, Wells Fargo & Company decreased their target price on Zillow Group from $60.00 to $45.00 and set an "equal weight" rating on the stock in a report on Thursday, May 7th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Zillow Group has a consensus rating of "Moderate Buy" and a consensus price target of $71.24.

Zillow Group Stock Performance

The stock has a market capitalization of $9.39 billion, a price-to-earnings ratio of 156.58, a P/E/G ratio of 1.90 and a beta of 2.04. The company has a fifty day simple moving average of $43.40 and a 200 day simple moving average of $57.18.

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

Insider Buying and Selling at Zillow Group

In other Zillow Group news, CEO Jeremy Wacksman sold 13,661 shares of the firm's stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $44.25, for a total value of $604,499.25. Following the transaction, the chief executive officer directly owned 116,322 shares of the company's stock, valued at approximately $5,147,248.50. This trade represents a 10.51% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Errol G. Samuelson sold 7,015 shares of the firm's stock in a transaction on Thursday, February 12th. The shares were sold at an average price of $44.21, for a total transaction of $310,133.15. Following the completion of the transaction, the insider directly owned 113,800 shares in the company, valued at $5,031,098. This trade represents a 5.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 60,801 shares of company stock worth $2,683,986 in the last quarter. Company insiders own 29.88% of the company's stock.

Institutional Investors Weigh In On Zillow Group

Institutional investors have recently modified their holdings of the stock. Norges Bank bought a new stake in Zillow Group in the 4th quarter worth approximately $152,050,000. Independent Franchise Partners LLP grew its stake in Zillow Group by 1.1% during the fourth quarter. Independent Franchise Partners LLP now owns 2,024,556 shares of the technology company's stock valued at $138,135,000 after acquiring an additional 21,862 shares in the last quarter. M&T Bank Corp grew its stake in Zillow Group by 38,344.0% during the fourth quarter. M&T Bank Corp now owns 1,604,270 shares of the technology company's stock valued at $120,092,000 after acquiring an additional 1,600,097 shares in the last quarter. Tiger Global Management LLC increased its holdings in shares of Zillow Group by 30.7% in the 4th quarter. Tiger Global Management LLC now owns 1,023,733 shares of the technology company's stock worth $69,849,000 after buying an additional 240,690 shares during the last quarter. Finally, UBS Group AG boosted its stake in Zillow Group by 44.5% during the fourth quarter. UBS Group AG now owns 1,018,448 shares of the technology company's stock worth $69,489,000 after buying an additional 313,643 shares during the period. 20.32% of the stock is owned by hedge funds and other institutional investors.

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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