Zillow Group (NASDAQ:ZG) Stock Price Up 6.9% - Here's Why

Key Points

• Zillow Group shares rose 6.9% in Wednesday trading, reaching as high as $34.02 after previously closing at $31.80. Volume was well below average, with about 297,240 shares traded.
• Analyst sentiment was mixed but generally positive. Zacks Research upgraded Zillow to strong-buy, while several firms trimmed price targets; the consensus rating remains Moderate Buy with an average price target of $69.48.
• Recent fundamentals were solid. In its latest quarterly report, Zillow beat earnings estimates with $0.53 EPS versus $0.43 expected, and revenue rose 18.4% year over year to $708 million.

Zillow Group, Inc. (NASDAQ:ZG - Get Free Report) shares traded up 6.9% during mid-day trading on Wednesday . The company traded as high as $34.02 and last traded at $33.99. 297,240 shares changed hands during trading, a decline of 74% from the average session volume of 1,164,969 shares. The stock had previously closed at $31.80.

Analysts Set New Price Targets

Several research analysts have recently weighed in on ZG shares. Zacks Research upgraded shares of Zillow Group from a "hold" rating to a "strong-buy" rating in a research note on Monday, July 6th. Mizuho cut their price objective 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. Robert W. Baird decreased their price objective on shares of Zillow Group from $67.00 to $55.00 and set a "neutral" rating for the company in a research report on Wednesday, March 18th. 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 note on Thursday, May 7th. Finally, Wells Fargo & Company lifted their target price on Zillow Group from $45.00 to $46.00 and gave the stock an "equal weight" rating in a research report on Tuesday, July 7th. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, eleven have assigned a Hold rating and one has issued 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 $69.48.

Zillow Group Trading Up 5.5%

The company has a market cap of $7.68 billion, a P/E ratio of 134.28, a P/E/G ratio of 1.37 and a beta of 1.95. The company's 50-day moving average price is $34.92 and its two-hundred day moving average price is $45.69.

Zillow Group (NASDAQ:ZG - Get Free Report) last issued its quarterly earnings results on Wednesday, May 6th. The technology company reported $0.53 EPS for the quarter, topping the consensus estimate of $0.43 by $0.10. The business had revenue of $708.00 million for the quarter, compared to analysts' expectations of $705.17 million. Zillow Group had a net margin of 2.27% and a return on equity of 1.41%. The company's quarterly revenue was up 18.4% compared to the same quarter last year. During the same quarter last year, the company posted $0.41 earnings per share. As a group, analysts anticipate that Zillow Group, Inc. will post 0.9 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Errol G. Samuelson sold 2,939 shares of the firm's stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $37.97, for a total transaction of $111,593.83. Following the transaction, the insider directly owned 134,039 shares in the company, valued at $5,089,460.83. This trade represents a 2.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Dan Spaulding sold 3,078 shares of the firm's stock in a transaction on Monday, May 18th. The stock was sold at an average price of $37.40, for a total value of $115,117.20. Following the transaction, the insider owned 49,696 shares in the company, valued at $1,858,630.40. This trade represents a 5.83% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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 the last quarter, insiders have sold 42,910 shares of company stock worth $1,605,732. 29.88% of the stock is currently owned by insiders.

Institutional Trading of Zillow Group

A number of institutional investors and hedge funds have recently modified their holdings of the business. Arax Advisory Partners boosted its holdings in shares of Zillow Group by 402.3% in the 4th quarter. Arax Advisory Partners now owns 442 shares of the technology company's stock valued at $30,000 after buying an additional 354 shares during the period. First Command Advisory Services Inc. acquired a new position in Zillow Group in the fourth quarter valued at approximately $34,000. EverSource Wealth Advisors LLC grew its holdings in shares of Zillow Group by 183.6% during the first 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 during the last quarter. Fifth Third Bancorp grew its holdings in shares of Zillow Group by 990.3% during the first quarter. Fifth Third Bancorp now owns 1,014 shares of the technology company's stock valued at $42,000 after purchasing an additional 921 shares during the last quarter. Finally, Kestra Advisory Services LLC acquired a new stake in shares of Zillow Group during the 4th quarter worth approximately $47,000. 20.32% of the stock is owned by institutional investors and hedge funds.

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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