Zillow Group (NASDAQ:ZG) Raised to "Strong-Buy" at Zacks Research

Key Points

• Zacks Research upgraded Zillow Group (NASDAQ:ZG) from “hold” to “strong-buy,” adding a more bullish view to the stock from one research firm.
• Other analyst actions were mixed: some firms trimmed price targets, while the overall consensus remains “Moderate Buy” with an average price target of $69.48.
• Zillow recently posted better-than-expected earnings, with Q1 EPS of $0.53 versus $0.43 expected and revenue up 18.4% year over year, even as insider selling and legal overhang remain factors to watch.

Zillow Group (NASDAQ:ZG - Get Free Report) was upgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued to investors on Monday,Zacks.com reports.

Several other research analysts also recently commented on the company. Mizuho decreased their price objective on Zillow Group from $65.00 to $53.00 and set a "neutral" rating on the stock in a report on Thursday, May 7th. Wells Fargo & Company raised their price target on Zillow Group from $45.00 to $46.00 and gave the stock an "equal weight" rating in a research report on Tuesday. Weiss Ratings cut Zillow Group from a "sell (d+)" rating to a "sell (d)" rating in a research note on Friday, May 22nd. Barclays lowered their price objective on Zillow Group from $58.00 to $54.00 and set an "equal weight" rating for the company in a research report on Friday, May 8th. Finally, UBS Group dropped their price objective on Zillow Group from $80.00 to $75.00 and set a "buy" rating for the company in a research note on Tuesday, April 28th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $69.48.

Zillow Group Stock Performance

ZG stock opened at $32.69 on Monday. The company has a market capitalization of $7.48 billion, a PE ratio of 130.76, a price-to-earnings-growth ratio of 1.41 and a beta of 1.95. Zillow Group has a one year low of $29.03 and a one year high of $90.22. The company's 50 day moving average price is $36.15 and its two-hundred day moving average price is $46.94.

Zillow Group (NASDAQ:ZG - Get Free Report) last released its earnings results on Wednesday, May 6th. The technology company reported $0.53 EPS 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 net margin of 2.27% and a return on equity of 1.41%. The firm's quarterly revenue was up 18.4% compared to the same quarter last year. During the same quarter last year, the firm earned $0.41 EPS. On average, research analysts predict that Zillow Group will post 0.9 EPS for the current year.

Insider Buying and Selling

In related news, CEO Jeremy Wacksman sold 9,072 shares of the business's stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $36.54, for a total transaction of $331,490.88. Following the transaction, the chief executive officer owned 153,699 shares in the company, valued at $5,616,161.46. The trade was a 5.57% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Erik C. Blachford sold 791 shares of the stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $34.80, for a total value of $27,526.80. Following the completion of the sale, the director owned 34,952 shares of the company's stock, valued at approximately $1,216,329.60. This trade represents a 2.21% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 42,910 shares of company stock valued at $1,605,732 over the last ninety days. Corporate insiders own 29.88% of the company's stock.

Institutional Trading of Zillow Group

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. NewEdge Advisors LLC increased its position in Zillow Group by 6.7% during the 1st quarter. NewEdge Advisors LLC now owns 11,071 shares of the technology company's stock valued at $458,000 after purchasing an additional 699 shares during the period. Edgestream Partners L.P. purchased a new stake in shares of Zillow Group in the 1st quarter worth about $398,000. EverSource Wealth Advisors LLC boosted its stake 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 purchasing an additional 637 shares in the last quarter. Empowered Funds LLC boosted its stake in shares of Zillow Group by 60.3% during the 1st quarter. Empowered Funds LLC now owns 10,060 shares of the technology company's stock valued at $416,000 after purchasing an additional 3,784 shares in the last quarter. Finally, Quantinno Capital Management LP increased its position in shares of Zillow Group by 106.6% during the first quarter. Quantinno Capital Management LP now owns 176,052 shares of the technology company's stock valued at $7,287,000 after buying an additional 90,858 shares during the period. Hedge funds and other institutional investors own 20.32% of the company's stock.

Key Stories Impacting Zillow Group

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

• Positive Sentiment: Wells Fargo raised its price target on Zillow Group to $46 from $45, indicating modestly improved valuation expectations despite maintaining an equal-weight rating.
• Positive Sentiment: Zillow’s June Market Report showed home sales up 5.9% year over year and new listings up 3%, signaling a possible pickup in housing activity that could benefit the platform. Article Title
• Neutral Sentiment: Zillow said it will announce second-quarter 2026 results on August 5, which could become the next major catalyst for the stock as investors look for signs of revenue and margin momentum. Article Title
• Negative Sentiment: New securities-fraud lawsuits and repeated deadline reminders create legal and regulatory overhang for Zillow Group, increasing uncertainty and potentially weighing on investor confidence. 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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