Zillow Group (NASDAQ:ZG) Sets New 12-Month Low - What's Next?

Key Points

• Zillow Group hit a new 52-week low, trading as low as $34.50 as the stock continued to weaken, with shares down about 0.4% in the session.
• Analyst sentiment remains mixed: the stock has a consensus Hold rating and an average price target of $71.24, though several firms recently cut targets while Sanford C. Bernstein upgraded it to Buy.
• Despite the stock slump, Zillow recently delivered a better-than-expected quarterly report, posting $0.53 EPS on $708 million in revenue, both slightly above estimates and up 18.4% year over year.

Zillow Group, Inc. (NASDAQ:ZG - Get Free Report)'s share price reached a new 52-week low during trading on Monday . The stock traded as low as $34.50 and last traded at $35.25, with a volume of 61792 shares trading hands. The stock had previously closed at $35.39.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the company. Sanford C. Bernstein raised Zillow Group from an "outperform" rating to a "buy" rating in a research note on Tuesday, May 26th. Mizuho dropped their price target 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. Piper Sandler reduced their price objective on shares of Zillow Group from $70.00 to $55.00 and set an "overweight" rating on the stock in a research note on Thursday, May 7th. KeyCorp lowered their target price on Zillow Group from $75.00 to $65.00 and set an "overweight" rating for the company in a research report on Thursday, May 7th. Finally, Barclays reduced their price target on Zillow Group from $58.00 to $54.00 and set an "equal weight" rating on the stock in a research report on Friday, May 8th. Thirteen equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $71.24.

Zillow Group Stock Down 0.4%

The stock's 50-day simple moving average is $40.63 and its 200 day simple moving average is $52.87. The firm has a market cap of $8.07 billion, a P/E ratio of 141.06, a PEG ratio of 1.51 and a beta of 1.94.

Zillow Group (NASDAQ:ZG - Get Free Report) last posted its quarterly earnings data 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 return on equity of 1.41% and a net margin of 2.27%.The firm had revenue of $708.00 million during the quarter, compared to analyst estimates of $705.17 million. During the same period last year, the company posted $0.41 EPS. The business's quarterly revenue was up 18.4% on a year-over-year basis. On average, research analysts forecast that Zillow Group, Inc. will post 0.9 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Errol G. Samuelson sold 2,939 shares of the firm's stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $37.97, for a total transaction of $111,593.83. Following the completion of the sale, the insider owned 134,039 shares of the company's stock, valued at $5,089,460.83. This trade represents a 2.15% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Jeremy Wacksman sold 9,072 shares of the business's stock in a transaction on Friday, May 22nd. The shares were 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. 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. In the last three months, insiders sold 42,119 shares of company stock worth $1,578,206. Company insiders own 29.88% of the company's stock.

Hedge Funds Weigh In On Zillow Group

A number of institutional investors and hedge funds have recently made changes to their positions in ZG. Norges Bank bought a new stake in Zillow Group in the 4th quarter valued at about $152,050,000. Independent Franchise Partners LLP raised its position in shares of 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 worth $138,135,000 after purchasing an additional 21,862 shares during the period. M&T Bank Corp lifted its holdings in shares of Zillow Group by 38,344.0% in the 4th quarter. M&T Bank Corp now owns 1,604,270 shares of the technology company's stock worth $120,092,000 after purchasing an additional 1,600,097 shares in the last quarter. Tiger Global Management LLC lifted 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 purchasing an additional 240,690 shares in the last quarter. Finally, UBS Group AG grew its position in Zillow Group by 44.5% in the 4th quarter. UBS Group AG now owns 1,018,448 shares of the technology company's stock valued at $69,489,000 after purchasing an additional 313,643 shares during the period. 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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