Zillow Group (NASDAQ:Z) Trading Up 6.8% – Should You Buy?

Shares of Zillow Group, Inc. (NASDAQ:Z) rose 6.8% during mid-day trading on Wednesday . The stock traded as high as $34.03 and last traded at $34.0180. Approximately 947,925 shares changed hands during mid-day trading, a decline of 78% from the average session volume of 4,274,018 shares. The stock had previously closed at $31.86.

Key Zillow Group News

Here are the key news stories impacting Zillow Group this week:

• Positive Sentiment: Jefferies cut its price target on Zillow Group but kept a buy rating, implying substantial upside from recent trading levels and offering some support for the stock. Jefferies lowers Zillow price target
• Neutral Sentiment: Zillow Research said America’s housing deficit remained near 4.7 million homes in 2024, with strong multifamily construction slowing the growth in the shortfall. The data reinforces the long-term housing supply backdrop for Zillow’s business, but it is not an immediate earnings catalyst. Zillow housing deficit research release
• Negative Sentiment: Multiple law firms announced or promoted class-action lawsuits and lead-plaintiff deadlines against Zillow Group over alleged securities-law violations, creating legal overhang and investor concern. Class action lawsuit announcement
• Negative Sentiment: Recent reports say the lawsuits stem from a sharp stock decline tied to an alleged anticompetitive agreement with Redfin, which is weighing on sentiment and could keep the shares volatile. Zillow securities fraud lawsuit report

Analyst Upgrades and Downgrades

A number of analysts recently commented on the company. JPMorgan Chase & Co. dropped their price target on Zillow Group from $84.00 to $76.00 and set an “overweight” rating on the stock in a report on Thursday, May 7th. Jefferies Financial Group decreased their target price on Zillow Group from $75.00 to $60.00 and set a “buy” rating for the company in a research report on Tuesday. Royal Bank Of Canada lowered their target price on Zillow Group from $95.00 to $70.00 and set an “outperform” rating on the stock in a research note on Wednesday, June 10th. Keefe, Bruyette & Woods cut their price target on shares of Zillow Group from $50.00 to $37.00 and set a “market perform” rating on the stock in a report on Monday. Finally, UBS Group decreased their price objective on shares of Zillow Group from $80.00 to $75.00 and set a “buy” rating for the company in a report on Tuesday, April 28th. Three equities research analysts have rated the stock with a Strong Buy rating, six have given a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $72.38.

Zillow Group Trading Up 5.3%

The stock has a market cap of $7.68 billion, a PE ratio of 134.26, a PEG ratio of 1.38 and a beta of 1.98. The business has a 50-day moving average price of $34.74 and a 200 day moving average price of $45.78.

Zillow Group (NASDAQ:Z) last announced its quarterly earnings data on Wednesday, May 6th. The financial services provider reported $0.53 earnings per share for the quarter, topping the consensus estimate of $0.43 by $0.10. The company had revenue of $708.00 million during the quarter, compared to analyst estimates of $705.10 million. Zillow Group had a return on equity of 1.41% and a net margin of 2.27%. On average, equities analysts predict that Zillow Group, Inc. will post 0.9 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Erik C. Blachford sold 791 shares of Zillow Group stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $34.80, for a total value of $27,526.80. Following the completion of the transaction, the director directly owned 34,952 shares in the company, valued at approximately $1,216,329.60. The trade was a 2.21% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Dan Spaulding sold 3,078 shares of Zillow Group 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 transaction, the insider owned 49,696 shares of the company’s stock, valued at $1,858,630.40. This represents a 5.83% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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. Over the last quarter, insiders have sold 42,910 shares of company stock valued at $1,605,732. Corporate insiders own 25.03% of the company’s stock.

Hedge Funds Weigh In On Zillow Group

A number of large investors have recently made changes to their positions in the stock. Empowered Funds LLC grew its holdings in Zillow Group by 4.7% during the 1st quarter. Empowered Funds LLC now owns 3,822 shares of the financial services provider’s stock valued at $262,000 after buying an additional 171 shares in the last quarter. Doliver Advisors LP raised its holdings in shares of Zillow Group by 1.8% during the 4th quarter. Doliver Advisors LP now owns 9,687 shares of the financial services provider’s stock worth $661,000 after acquiring an additional 171 shares in the last quarter. GAMMA Investing LLC raised its holdings in shares of Zillow Group by 21.4% during the 4th quarter. GAMMA Investing LLC now owns 1,186 shares of the financial services provider’s stock worth $81,000 after acquiring an additional 209 shares in the last quarter. CIBC Asset Management Inc boosted its position in shares of Zillow Group by 3.0% during the 4th quarter. CIBC Asset Management Inc now owns 7,550 shares of the financial services provider’s stock valued at $515,000 after acquiring an additional 220 shares during the last quarter. Finally, B. Metzler seel. Sohn & Co. AG boosted its position in shares of Zillow Group by 6.9% during the 4th quarter. B. Metzler seel. Sohn & Co. AG now owns 3,923 shares of the financial services provider’s stock valued at $268,000 after acquiring an additional 252 shares during the last quarter. 71.01% of the stock is owned by institutional investors.

About Zillow Group

Zillow Group, Inc is an online real estate marketplace company that operates a portfolio of consumer-facing websites and mobile apps designed to connect buyers, sellers, renters, homeowners and real estate professionals. The company’s platforms aggregate property listings, rental listings, and related information to help users search for homes, estimate property values and connect with agents and service providers. Zillow generates revenue primarily through advertising and lead-generation services for real estate professionals, property managers and mortgage lenders.

Key products and services include the Zillow and Trulia consumer websites and apps, which provide searchable listings, photos, neighborhood data and the company’s automated home valuation tool known as the “Zestimate.” Zillow also offers a rentals marketplace, a mortgage marketplace and tools for home buying and selling such as Zillow Premier Agent for agent advertising and leads, as well as ancillary services designed to support transactions, including closing and title-related offerings.