Zillow Group (NASDAQ:ZG) Announces Quarterly Earnings Results, Beats Expectations By $0.10 EPS

Zillow Group (NASDAQ:ZG) posted its quarterly earnings results on Wednesday. The technology company reported $0.53 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.43 by $0.10, Briefing.com reports. Zillow Group had a net margin of 2.27% and a return on equity of 1.37%. The business had revenue of $708.00 million during the quarter, compared to the consensus estimate of $705.17 million. During the same quarter last year, the firm posted $0.41 EPS. Zillow Group’s revenue was up 18.4% compared to the same quarter last year.

Zillow Group Stock Down 4.8%

NASDAQ:ZG traded down $2.10 during trading hours on Friday, hitting $41.94. 1,602,770 shares of the company traded hands, compared to its average volume of 1,101,313. The firm’s 50-day simple moving average is $43.69 and its 200-day simple moving average is $57.86. Zillow Group has a one year low of $39.14 and a one year high of $90.22. The company has a market cap of $10.06 billion, a PE ratio of 167.76, a PEG ratio of 2.20 and a beta of 2.04.

Analysts Set New Price Targets

Several analysts recently issued reports on the stock. BNP Paribas Exane assumed coverage on shares of Zillow Group in a research report on Wednesday, January 14th. They issued an “outperform” rating and a $85.00 price target for the company. Citigroup reduced their price target on shares of Zillow Group from $100.00 to $78.00 and set a “buy” rating for the company in a research report on Thursday, February 12th. Zacks Research raised shares of Zillow Group from a “hold” rating to a “strong-buy” rating in a research report on Friday, April 10th. UBS Group reduced their price target on shares of Zillow Group from $80.00 to $75.00 and set a “buy” rating for the company in a research report on Tuesday, April 28th. Finally, Robert W. Baird reduced their price target 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. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $71.71.

Insider Buying and Selling at Zillow Group

In other Zillow Group news, CTO David A. Beitel sold 3,966 shares of the firm’s stock in a transaction on Thursday, February 12th. The stock was sold at an average price of $44.22, for a total transaction of $175,376.52. Following the transaction, the chief technology officer directly owned 136,690 shares in the company, valued at approximately $6,044,431.80. This trade represents a 2.82% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Jeremy Hofmann sold 7,786 shares of the firm’s stock in a transaction on Wednesday, February 18th. The shares were sold at an average price of $43.73, for a total value of $340,481.78. Following the transaction, the chief financial officer owned 57,487 shares in the company, valued at approximately $2,513,906.51. This trade represents a 11.93% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 60,801 shares of company stock worth $2,683,986. 29.88% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Zillow Group

Large investors have recently bought and sold shares of the stock. Arax Advisory Partners lifted 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 valued at $30,000 after acquiring an additional 354 shares in the last quarter. Kestra Advisory Services LLC bought a new position in Zillow Group during the 4th quarter valued at $47,000. Quarry LP bought a new stake in shares of Zillow Group during the 4th quarter worth $56,000. Group One Trading LLC raised its stake in shares of Zillow Group by 884.7% during the 3rd quarter. Group One Trading LLC now owns 1,477 shares of the technology company’s stock worth $110,000 after purchasing an additional 1,327 shares during the period. Finally, PNC Financial Services Group Inc. raised its stake in shares of Zillow Group by 10.1% during the 4th quarter. PNC Financial Services Group Inc. now owns 2,156 shares of the technology company’s stock worth $147,000 after purchasing an additional 198 shares during the period. 20.32% of the stock is currently owned by institutional investors.

Zillow Group News Roundup

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

• Positive Sentiment: Zillow beat Q1 estimates, reporting EPS of $0.53 versus $0.43 expected and revenue of $708 million versus $705.17 million, with revenue up 18.4% year over year. Mortgage originations surged 96% and rental revenue climbed 42%, supporting the growth story. Zillow Group (ZG) Q1 Earnings and Revenues Surpass Estimates
• Positive Sentiment: The company also issued Q2 revenue guidance of $750 million to $765 million, which brackets Wall Street expectations and signals continued growth.
• Neutral Sentiment: Several analysts lowered price targets after the earnings release, including Wells Fargo, KeyCorp, Piper Sandler and Mizuho, reflecting a more tempered outlook even as some firms maintained constructive ratings. Analyst target revisions
• Neutral Sentiment: A Rosen Law Firm securities class action investigation notice added another headline for investors, but it does not by itself prove wrongdoing. Rosen Law Firm investigation notice
• Negative Sentiment: WSJ reporting that first-quarter traffic fell 3% to 220 million average monthly unique users may be pressuring sentiment because it suggests softer audience engagement despite stronger profitability. Zillow Posts Higher Profit, Lower Traffic in First Quarter

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.