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Zillow Group (NASDAQ:ZG) Posts Earnings Results, Misses Expectations By $0.04 EPS

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Key Points

  • Zillow Group reported a quarterly earnings per share (EPS) of $0.40, falling short of analyst expectations of $0.44 by $0.04.
  • The company's revenue increased by 14.5% year-over-year to $655 million, exceeding the expected $647.06 million.
  • Despite positive revenue growth, Zillow Group has a negative return on equity of 1.26% and a net margin of -2.60%.
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Zillow Group (NASDAQ:ZG - Get Free Report) issued its quarterly earnings data on Wednesday. The technology company reported $0.40 EPS for the quarter, missing analysts' consensus estimates of $0.44 by ($0.04), Briefing.com reports. The firm had revenue of $655.00 million for the quarter, compared to analyst estimates of $647.06 million. Zillow Group had a negative return on equity of 1.26% and a negative net margin of 2.60%. Zillow Group's revenue for the quarter was up 14.5% compared to the same quarter last year. During the same period in the previous year, the business earned $0.39 EPS.

Zillow Group Stock Performance

Zillow Group stock traded down $3.60 during midday trading on Friday, reaching $77.51. 681,201 shares of the company were exchanged, compared to its average volume of 554,110. The company has a market capitalization of $18.71 billion, a price-to-earnings ratio of -298.12, a P/E/G ratio of 14.98 and a beta of 2.07. The firm's 50-day simple moving average is $72.45 and its 200-day simple moving average is $70.83. Zillow Group has a 1 year low of $47.86 and a 1 year high of $86.58.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on the stock. William Blair initiated coverage on shares of Zillow Group in a research note on Monday, April 21st. They issued a "market perform" rating on the stock. Benchmark lowered their target price on shares of Zillow Group from $110.00 to $95.00 and set a "buy" rating on the stock in a research note on Thursday, May 8th. The Goldman Sachs Group lowered their target price on shares of Zillow Group from $77.00 to $69.00 and set a "neutral" rating on the stock in a research note on Thursday, May 8th. Susquehanna reaffirmed a "neutral" rating on shares of Zillow Group in a research note on Friday. Finally, JPMorgan Chase & Co. lifted their price target on Zillow Group from $93.00 to $94.00 and gave the stock an "overweight" rating in a report on Thursday. One equities research analyst has rated the stock with a sell rating, ten have issued a hold rating and thirteen have issued a buy rating to the company's stock. Based on data from MarketBeat, Zillow Group presently has an average rating of "Moderate Buy" and a consensus price target of $85.62.

Get Our Latest Stock Analysis on ZG

Insider Activity

In other Zillow Group news, CFO Jeremy Hofmann sold 7,959 shares of Zillow Group stock in a transaction dated Friday, May 16th. The stock was sold at an average price of $68.98, for a total value of $549,011.82. Following the completion of the sale, the chief financial officer owned 97,481 shares in the company, valued at $6,724,239.38. The trade was a 7.55% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Dan Spaulding sold 5,534 shares of Zillow Group stock in a transaction dated Friday, May 16th. The shares were sold at an average price of $68.98, for a total value of $381,735.32. Following the completion of the sale, the insider owned 68,889 shares of the company's stock, valued at $4,751,963.22. This trade represents a 7.44% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 83,371 shares of company stock worth $5,775,204 in the last quarter. Corporate insiders own 17.14% 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. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Zillow Group by 7.0% in 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 valued at $5,878,000 after purchasing an additional 5,737 shares in the last quarter. Millennium Management LLC raised its position in shares of Zillow Group by 110.8% in the 1st quarter. Millennium Management LLC now owns 290,999 shares of the technology company's stock valued at $19,456,000 after purchasing an additional 152,955 shares in the last quarter. Finally, AQR Capital Management LLC increased its holdings in shares of Zillow Group by 40.5% in the 1st quarter. AQR Capital Management LLC now owns 12,890 shares of the technology company's stock valued at $862,000 after acquiring an additional 3,717 shares during the last quarter. 20.32% of the stock is owned by institutional investors and hedge funds.

Zillow Group Company Profile

(Get Free Report)

Zillow Group, Inc operates real estate brands in mobile applications and Websites in the United States. The company offers premier agent and rentals marketplaces, new construction marketplaces, advertising, display advertising, and business technology solutions, as well as dotloop and floor plans. It also provides mortgage originations and the sale of mortgages, and advertising to mortgage lenders and other mortgage professionals; and title and escrow services.

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Earnings History for Zillow Group (NASDAQ:ZG)

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