Zillow Group (NASDAQ:ZG) Shares Down 5.8% After Analyst Downgrade

Key Points

• Zillow shares fell 5.8% after Cantor Fitzgerald cut its price target from $56 to $46 and kept a neutral rating; the stock traded as low as $43.40 and was last at $42.49 with mid‑day volume roughly 84% below average.
• Analyst sentiment is mixed — 14 Buys, 12 Holds and 1 Sell — giving an average rating of Hold and an average price target of $77.05, though several firms have recently lowered targets.
• Zillow missed EPS ($0.39 vs. $0.42 expected) while beating revenue, and insiders sold about 60,801 shares (~$2.68M) over the last quarter; insiders now own 17.14% of the company.

Zillow Group, Inc. (NASDAQ:ZG - Get Free Report)'s share price fell 5.8% on Wednesday after Cantor Fitzgerald lowered their price target on the stock from $56.00 to $46.00. Cantor Fitzgerald currently has a neutral rating on the stock. Zillow Group traded as low as $43.40 and last traded at $42.49. 186,812 shares were traded during mid-day trading, a decline of 84% from the average session volume of 1,167,276 shares. The stock had previously closed at $45.09.

Several other brokerages have also commented on ZG. Citigroup lowered their price objective on Zillow Group from $100.00 to $78.00 and set a "buy" rating for the company in a research report on Thursday, February 12th. Barclays decreased their price target on shares of Zillow Group from $72.00 to $66.00 and set an "equal weight" rating for the company in a research note on Wednesday, February 11th. BNP Paribas Exane began coverage on shares of Zillow Group in a research note on Wednesday, January 14th. They set an "outperform" rating and a $85.00 price objective on the stock. Mizuho set a $65.00 price objective on shares of Zillow Group in a report on Wednesday, February 11th. Finally, Wells Fargo & Company decreased their target price on shares of Zillow Group from $73.00 to $61.00 and set an "equal weight" rating for the company in a research note on Tuesday, February 10th. Fourteen equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $77.05.

Insider Transactions at Zillow Group

In related news, CTO David A. Beitel sold 3,966 shares of the firm's stock in a transaction that occurred on Thursday, February 12th. The shares were sold at an average price of $44.22, for a total transaction of $175,376.52. Following the completion of the sale, the chief technology officer owned 136,690 shares of the company's stock, valued at $6,044,431.80. This trade represents a 2.82% 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. Also, insider Errol G. Samuelson sold 7,015 shares of the business's stock in a transaction that occurred on Thursday, February 12th. The stock was sold at an average price of $44.21, for a total transaction of $310,133.15. Following the completion of the transaction, the insider owned 113,800 shares of the company's stock, valued at approximately $5,031,098. The trade was a 5.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 60,801 shares of company stock worth $2,683,986 over the last quarter. Corporate insiders own 17.14% of the company's stock.

Institutional Investors Weigh In On Zillow Group

A number of large investors have recently added to or reduced their stakes in ZG. DoubleLine ETF Adviser LP increased its stake in Zillow Group by 4.9% during the third quarter. DoubleLine ETF Adviser LP now owns 3,214 shares of the technology company's stock worth $239,000 after acquiring an additional 150 shares during the last quarter. Wealth Enhancement Advisory Services LLC lifted its stake in shares of Zillow Group by 4.5% in the 3rd quarter. Wealth Enhancement Advisory Services LLC now owns 3,657 shares of the technology company's stock valued at $256,000 after purchasing an additional 156 shares during the last quarter. Signaturefd LLC lifted its stake in shares of Zillow Group by 10.4% in the 4th quarter. Signaturefd LLC now owns 1,711 shares of the technology company's stock valued at $117,000 after purchasing an additional 161 shares during the last quarter. Smartleaf Asset Management LLC boosted its holdings in shares of Zillow Group by 78.9% in the 3rd quarter. Smartleaf Asset Management LLC now owns 424 shares of the technology company's stock worth $33,000 after purchasing an additional 187 shares during the period. Finally, Jones Financial Companies Lllp boosted its holdings in shares of Zillow Group by 23.1% in the 3rd quarter. Jones Financial Companies Lllp now owns 1,033 shares of the technology company's stock worth $80,000 after purchasing an additional 194 shares during the period. Institutional investors own 20.32% of the company's stock.

Zillow Group Trading Down 4.9%

The stock has a market cap of $10.29 billion, a P/E ratio of 476.39, a P/E/G ratio of 2.50 and a beta of 2.05. The company has a 50-day moving average price of $51.78 and a two-hundred day moving average price of $64.93.

Zillow Group (NASDAQ:ZG - Get Free Report) last released its quarterly earnings results on Tuesday, February 10th. The technology company reported $0.39 earnings per share for the quarter, missing the consensus estimate of $0.42 by ($0.03). The company had revenue of $654.00 million for 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 business's quarterly revenue was up 18.1% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.27 EPS. As a group, equities analysts forecast that Zillow Group, Inc. will post 0.32 earnings per share for the current fiscal year.

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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