Zillow Group (NASDAQ:ZG) Reaches New 12-Month Low on Insider Selling

Key Points

• Zillow Group shares hit a new 52-week low after insider selling, briefly falling to $37.26 and closing near $37.61, down about 1.2% on the day.
• CFO Jeremy Hofmann sold shares twice in May under a pre-arranged Rule 10b5-1 plan, with the transactions tied to tax withholding on vesting equity awards. Another insider, Dan Spaulding, also sold shares for the same reason.
• Analysts remain mixed but generally constructive: recent target-price cuts from several firms contrast with upgrades and buy ratings, while MarketBeat shows an overall “Moderate Buy” consensus and a $71.24 average price target.

Zillow Group, Inc. (NASDAQ:ZG - Get Free Report) shares hit a new 52-week low during trading on Tuesday after an insider sold shares in the company. The stock traded as low as $37.26 and last traded at $37.61, with a volume of 1697655 shares changing hands. The stock had previously closed at $38.06.

Specifically, CFO Jeremy Hofmann sold 5,501 shares of the firm's stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $37.40, for a total transaction of $205,737.40. Following the completion of the sale, the chief financial officer owned 68,315 shares of the company's stock, valued at $2,554,981. This trade represents a 7.45% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 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, CFO Jeremy Hofmann sold 3,671 shares of the firm's stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $37.93, for a total transaction of $139,241.03. Following the sale, the chief financial officer directly owned 73,816 shares of the company's stock, valued at $2,799,840.88. This trade represents a 4.74% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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. In related news, insider Dan Spaulding sold 3,078 shares of the firm's stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $37.40, for a total transaction of $115,117.20. Following the completion of the sale, the insider owned 49,696 shares of the company's stock, valued at $1,858,630.40. This trade represents a 5.83% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 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.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on ZG. Zacks Research upgraded shares of Zillow Group from a "hold" rating to a "strong-buy" rating in a report on Friday, April 10th. Wells Fargo & Company dropped their target price on shares of Zillow Group from $60.00 to $45.00 and set an "equal weight" rating on the stock in a report on Thursday, May 7th. Cantor Fitzgerald dropped their target price on shares of Zillow Group from $56.00 to $46.00 and set a "neutral" rating on the stock in a report on Wednesday, March 25th. Benchmark restated a "buy" rating on shares of Zillow Group in a report on Wednesday, February 11th. Finally, Mizuho dropped their target price on shares of Zillow Group from $65.00 to $53.00 and set a "neutral" rating on the stock in a report on Thursday, May 7th. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $71.24.

Zillow Group Stock Down 1.2%

The company's fifty day moving average is $42.81 and its 200-day moving average is $56.17. The company has a market cap of $8.61 billion, a PE ratio of 150.44, a PEG ratio of 1.78 and a beta of 2.04.

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

Institutional Investors Weigh In On Zillow Group

Hedge funds have recently modified their holdings of the business. Smartleaf Asset Management LLC grew its position 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 acquiring an additional 187 shares during the period. Arax Advisory Partners grew its position 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 acquiring an additional 354 shares during the period. First Command Advisory Services Inc. bought a new stake in shares of Zillow Group during the 4th quarter valued at $34,000. Kestra Advisory Services LLC bought a new stake in shares of Zillow Group during the 4th quarter valued at $47,000. Finally, Quarry LP bought a new stake in shares of Zillow Group during the 4th quarter valued at $56,000. 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.

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