Zillow Group (NASDAQ:ZG) Issues Quarterly Earnings Results, Beats Expectations By $0.10 EPS

Zillow Group (NASDAQ:ZG - Get Free Report) issued its quarterly earnings results on Wednesday. The technology company reported $0.53 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.43 by $0.10, Briefing.com reports. Zillow Group had a net margin of 2.27% and a return on equity of 1.37%. 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 firm earned $0.41 earnings per share. The firm's quarterly revenue was up 18.4% on a year-over-year basis.

Zillow Group Trading Down 1.8%

Shares of ZG stock opened at $44.04 on Friday. Zillow Group has a 12-month low of $39.14 and a 12-month high of $90.22. The stock has a 50 day simple moving average of $43.69 and a 200-day simple moving average of $57.86. The company has a market cap of $10.57 billion, a price-to-earnings ratio of 176.16, a price-to-earnings-growth ratio of 2.20 and a beta of 2.04.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on ZG. Benchmark reaffirmed a "buy" rating on shares of Zillow Group in a report on Wednesday, February 11th. Citizens Jmp dropped their price objective on Zillow Group from $90.00 to $85.00 and set a "market outperform" rating on the stock in a report on Monday, January 12th. Evercore reissued an "outperform" rating on shares of Zillow Group in a research report on Tuesday, March 17th. Mizuho decreased their target price on Zillow Group from $65.00 to $53.00 and set a "neutral" rating for the company in a research note on Thursday. Finally, Zacks Research raised Zillow Group from a "hold" rating to a "strong-buy" rating in a report on Friday, April 10th. 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 assigned a Sell rating to the company's stock. According to MarketBeat, Zillow Group currently has a consensus rating of "Moderate Buy" and a consensus price target of $71.90.

Key Headlines Impacting Zillow Group

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

• Positive Sentiment: Q1 revenue growth and business momentum: Zillow reported year‑over‑year revenue growth driven by a big jump in mortgage originations and rental revenue, highlighting strength in its diversified home‑finance and rentals businesses. Zacks: Zillow's Q1 Earnings Beat Estimates
• Neutral Sentiment: Guidance roughly in line with expectations: Zillow gave Q2 revenue guidance of about $750.0–$765.0M versus a consensus near $760.3M — broadly in range but not clearly upside. See the company release for details. PR Newswire: Q1 Financial Results
• Negative Sentiment: Analysts cut price targets: Several firms trimmed targets (Wells Fargo to $45, Mizuho to $53, Piper Sandler to $55, KeyCorp to $65). Those cuts reduce upside and signal increased caution from sell‑side analysts. Benzinga: Analyst Price Target Moves
• Negative Sentiment: Securities‑class‑action investigation announced: Rosen Law Firm is soliciting Zillow shareholders for a potential securities class action alleging materially misleading statements, which can increase legal and reputational risk. Newsfile: Rosen Law Firm Investigation
• Negative Sentiment: Mixed/conflicting earnings coverage and traffic decline create uncertainty: Some outlets reported an EPS beat while others flagged a miss or lower traffic (WSJ reports traffic down ~3%), which may be amplifying investor uncertainty about growth sustainability and margins. MarketBeat: Earnings summary WSJ: Traffic decline

Insider Buying and Selling at Zillow Group

In other news, CEO Jeremy Wacksman sold 13,661 shares of the firm's stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $44.25, for a total value of $604,499.25. Following the completion of the transaction, the chief executive officer owned 116,322 shares in the company, valued at $5,147,248.50. This trade represents a 10.51% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Dan Spaulding sold 5,361 shares of the firm's stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $43.95, for a total value of $235,615.95. Following the completion of the transaction, the insider owned 41,080 shares of the company's stock, valued at approximately $1,805,466. This represents a 11.54% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 60,801 shares of company stock worth $2,683,986. Corporate insiders own 29.88% of the company's stock.

Institutional Investors Weigh In On Zillow Group

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Tiger Global Management LLC lifted its holdings in 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 valued at $69,849,000 after purchasing an additional 240,690 shares in the last quarter. UBS Group AG lifted its stake in shares of Zillow Group by 18.2% during the third quarter. UBS Group AG now owns 704,805 shares of the technology company's stock valued at $52,466,000 after buying an additional 108,600 shares during the period. Wellington Management Group LLP boosted its position in Zillow Group by 60.1% during the third quarter. Wellington Management Group LLP now owns 557,735 shares of the technology company's stock worth $41,518,000 after acquiring an additional 209,312 shares during the last quarter. Virtu Financial LLC boosted its position in Zillow Group by 271.9% during the third quarter. Virtu Financial LLC now owns 293,718 shares of the technology company's stock worth $21,864,000 after acquiring an additional 214,743 shares during the last quarter. Finally, Millennium Management LLC grew its stake in Zillow Group by 110.8% in the 1st 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. Hedge funds and other institutional investors own 20.32% of the company's stock.

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.