Zillow Group (NASDAQ:Z) Downgraded by Sanford C. Bernstein to Hold

Zillow Group (NASDAQ:Z) was downgraded by analysts at Sanford C. Bernstein from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Thursday,Zacks.com reports.

A number of other equities research analysts have also recently issued reports on Z. Deutsche Bank Aktiengesellschaft decreased their target price on Zillow Group from $80.00 to $68.00 and set a “buy” rating for the company in a research report on Friday, May 8th. Royal Bank Of Canada reduced their price objective on shares of Zillow Group from $95.00 to $70.00 and set an “outperform” rating for the company in a research note on Wednesday, June 10th. 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. Evercore lowered shares of Zillow Group from a “strong-buy” rating to a “hold” rating in a research note on Thursday. Finally, Weiss Ratings downgraded shares of Zillow Group from a “sell (d+)” rating to a “sell (d)” rating in a report on Friday, May 22nd. Two equities research analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $68.88.

Zillow Group Price Performance

Shares of NASDAQ:Z opened at $33.43 on Thursday. The stock has a market capitalization of $7.65 billion, a P/E ratio of 151.96, a P/E/G ratio of 1.54 and a beta of 1.98. The business has a 50-day moving average of $33.08 and a two-hundred day moving average of $41.59. Zillow Group has a fifty-two week low of $29.23 and a fifty-two week high of $93.88.

Zillow Group (NASDAQ:Z) last issued its quarterly earnings data on Wednesday, August 5th. The financial services provider reported $0.52 EPS for the quarter, beating analysts’ consensus estimates of $0.45 by $0.07. Zillow Group had a return on equity of 2.27% and a net margin of 1.96%.The business had revenue of $772.00 million for the quarter, compared to analyst estimates of $758.10 million. As a group, research analysts expect that Zillow Group will post 0.9 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CFO Jeremy Hofmann sold 5,501 shares of the company’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $37.40, for a total transaction of $205,737.40. Following the completion of the transaction, the chief financial officer directly owned 68,315 shares in the company, valued at $2,554,981. The trade was a 7.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 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. Also, insider Errol G. Samuelson sold 2,939 shares of the stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $37.97, for a total value of $111,593.83. Following the completion of the sale, the insider directly owned 134,039 shares of the company’s stock, valued at $5,089,460.83. This represents a 2.15% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 42,910 shares of company stock worth $1,605,732. 25.03% of the stock is currently owned by company insiders.

Institutional Trading of Zillow Group

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Empowered Funds LLC lifted its stake in shares of Zillow Group by 4.7% in the first 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 during the period. Intech Investment Management LLC lifted its position in shares of Zillow Group by 21.7% in the 1st quarter. Intech Investment Management LLC now owns 20,518 shares of the financial services provider’s stock worth $1,407,000 after acquiring an additional 3,653 shares during the period. American Century Companies Inc. grew its holdings in shares of Zillow Group by 1.6% during the 2nd quarter. American Century Companies Inc. now owns 23,064 shares of the financial services provider’s stock worth $1,616,000 after purchasing an additional 362 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its position in shares of Zillow Group by 186.3% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,678 shares of the financial services provider’s stock valued at $118,000 after purchasing an additional 1,092 shares during the period. Finally, First Trust Advisors LP increased its position in shares of Zillow Group by 1,895.4% during the second quarter. First Trust Advisors LP now owns 128,362 shares of the financial services provider’s stock valued at $8,992,000 after purchasing an additional 121,929 shares during the period. 71.01% of the stock is currently owned by institutional investors and hedge funds.

Zillow Group News Summary

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

• Positive Sentiment: Second-quarter results exceeded estimates. Zillow reported adjusted EPS of $0.52 versus the $0.45 consensus and revenue of $772 million versus expectations of $758.1 million. Revenue increased 18% year over year, providing evidence of continued demand for the company’s services. Zillow Surpasses Q2 Earnings and Revenue Estimates
• Neutral Sentiment: Management is reshaping its leadership structure. CFO Jeremy Hofmann will also become chief operating officer, while Cassandra Knight becomes Zillow’s first chief legal and policy officer. The changes could improve execution, but they also highlight a period of significant organizational change. Zillow Strengthens Executive Leadership Team
• Negative Sentiment: Forward guidance came in below analyst expectations. Zillow forecast third-quarter revenue of $745 million to $760 million, below the $772.3 million consensus, and full-year revenue of $2.9 billion to $3.0 billion, roughly below or at the low end of the $3.0 billion estimate. The soft outlook drove after-hours selling. Zillow Stock Slides on Soft Outlook
• Negative Sentiment: Restructuring costs pushed Zillow to a loss. The company posted a $4 million net loss despite higher revenue, as $36 million in restructuring expenses weighed on results. Zillow also plans to eliminate just over 500 jobs, or about 7% of its workforce, underscoring management’s concern about a flat housing market. Zillow Layoffs Amid Flat Housing Market
• Negative Sentiment: Housing indicators point to a slower second half. July home sales rose 7% year over year, but sharply lower newly pending sales and higher mortgage rates suggest the improvement may not persist. Zacks also downgraded Zillow from “strong buy” to “hold.” Zillow July Market Report
• Negative Sentiment: Several law firms are promoting a securities-fraud class action involving investors who purchased Zillow shares between February 11, 2025 and May 7, 2026. The August 10 lead-plaintiff deadline adds reputational and potential legal-risk overhang, although the allegations have not been proven. Zillow Securities Class Action Deadline

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.