Zillow Group (NASDAQ:ZG) Sets New 52-Week Low - Here's Why

Key Points

• Zillow shares hit a new 52-week low, trading as low as $41.89 (last $41.7950) and down about 5% on the day.
• Multiple brokers cut price targets recently (e.g., Wells Fargo to $61, Cantor to $56, Goldman to $62), leaving a consensus rating of “Moderate Buy” with an average target of $78.05.
• Zillow slightly missed quarterly EPS ($0.39 vs. $0.42) despite 18.1% year-over-year revenue growth, and insiders — including CEO Jeremy Wacksman — have been selling shares (60,801 shares sold over the last three months).

Zillow Group, Inc. (NASDAQ:ZG - Get Free Report) shares reached a new 52-week low during mid-day trading on Thursday . The stock traded as low as $41.89 and last traded at $41.7950, with a volume of 314598 shares. The stock had previously closed at $44.35.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on ZG shares. Wells Fargo & Company dropped their target price on Zillow Group from $73.00 to $61.00 and set an "equal weight" rating for the company in a research report on Tuesday, February 10th. Cantor Fitzgerald lowered their price objective on shares of Zillow Group from $68.00 to $56.00 and set a "neutral" rating for the company in a research note on Wednesday, February 11th. Robert W. Baird set a $67.00 target price on shares of Zillow Group in a research note on Wednesday, February 11th. Canaccord Genuity Group set a $72.00 target price on shares of Zillow Group in a report on Wednesday, February 11th. Finally, The Goldman Sachs Group dropped their price target on shares of Zillow Group from $78.00 to $62.00 and set a "neutral" rating for the company in a research note on Wednesday, February 11th. Fourteen investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $78.05.

Zillow Group Stock Down 5.0%

The company's fifty day moving average is $55.96 and its two-hundred day moving average is $67.44. The stock has a market cap of $10.11 billion, a price-to-earnings ratio of 469.35, a PEG ratio of 2.44 and a beta of 2.05.

Zillow Group (NASDAQ:ZG - Get Free Report) last announced its quarterly earnings data on Tuesday, February 10th. The technology company reported $0.39 EPS for the quarter, missing analysts' consensus estimates of $0.42 by ($0.03). The firm had revenue of $654.00 million during the quarter, compared to analysts' expectations of $650.40 million. Zillow Group had a net margin of 0.89% and a return on equity of 0.56%. The company's revenue for the quarter was up 18.1% on a year-over-year basis. During the same period in the prior year, the company posted $0.27 earnings per share. Sell-side analysts predict that Zillow Group, Inc. will post 0.32 EPS for the current fiscal year.

Insider Activity at Zillow Group

In other news, CEO Jeremy Wacksman sold 13,661 shares of the company's stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $44.25, for a total transaction of $604,499.25. Following the completion of the transaction, the chief executive officer directly owned 116,322 shares of the company's stock, valued at approximately $5,147,248.50. This represents a 10.51% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Dan Spaulding sold 5,361 shares of the firm's stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $43.95, for a total value of $235,615.95. Following the sale, the insider directly owned 41,080 shares in the company, valued at $1,805,466. This trade represents a 11.54% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 60,801 shares of company stock worth $2,683,986 over the last three months. Company insiders own 17.14% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of ZG. Arax Advisory Partners raised its stake in Zillow Group by 402.3% during the 4th quarter. Arax Advisory Partners now owns 442 shares of the technology company's stock worth $30,000 after acquiring an additional 354 shares in the last quarter. Smartleaf Asset Management LLC boosted its stake in Zillow Group by 78.9% in the third 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 in the last quarter. First Command Advisory Services Inc. acquired a new position in Zillow Group in the fourth quarter valued at $34,000. Kestra Advisory Services LLC purchased a new position in shares of Zillow Group during the fourth quarter worth about $47,000. Finally, Quarry LP acquired a new stake in shares of Zillow Group during the fourth quarter worth about $56,000. Institutional investors and hedge funds 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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