Zillow Group (NASDAQ:Z) Downgraded by Evercore to Hold

Evercore lowered shares of Zillow Group (NASDAQ:Z) from a strong-buy rating to a hold rating in a report published on Thursday,Zacks.com reports.

Several other analysts have also weighed in on the company. Morgan Stanley set a $60.00 price target on Zillow Group in a report on Thursday. Deutsche Bank Aktiengesellschaft cut their price objective on shares of Zillow Group from $80.00 to $68.00 and set a “buy” rating on the stock in a research report on Friday, May 8th. Keefe, Bruyette & Woods reduced their target price on shares of Zillow Group from $50.00 to $37.00 and set a “market perform” rating on the stock in a research note on Monday, July 13th. Weiss Ratings lowered shares of Zillow Group from a “sell (d+)” rating to a “sell (d)” rating in a report on Friday, May 22nd. Finally, JPMorgan Chase & Co. cut their price target on shares of Zillow Group from $84.00 to $76.00 and set an “overweight” rating on the stock in a report on Thursday, May 7th. Two research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $68.88.

Zillow Group Trading Down 7.4%

Z opened at $33.43 on Thursday. The stock has a 50-day moving average of $33.08 and a 200 day moving average of $41.59. Zillow Group has a 12 month low of $29.23 and a 12 month high of $93.88. The firm has a market cap 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.

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

Insider Buying and Selling at Zillow Group

In related news, insider Dan Spaulding sold 3,078 shares of the stock in a transaction that occurred 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 of the company’s stock, valued at $1,858,630.40. This represents a 5.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available 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 stock was sold at an average price of $37.97, for a total value of $111,593.83. Following the completion of the transaction, the insider directly owned 134,039 shares in the company, valued at approximately $5,089,460.83. This trade represents a 2.15% decrease in their position. 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. In the last quarter, insiders sold 42,910 shares of company stock valued at $1,605,732. 25.03% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Zillow Group

Several hedge funds have recently made changes to their positions in Z. Independent Franchise Partners LLP increased its stake in shares of Zillow Group by 0.9% during the fourth quarter. Independent Franchise Partners LLP now owns 10,953,405 shares of the financial services provider’s stock valued at $747,241,000 after buying an additional 94,569 shares during the period. Capital World Investors raised its holdings in shares of Zillow Group by 1.8% in the fourth quarter. Capital World Investors now owns 10,826,066 shares of the financial services provider’s stock valued at $738,554,000 after acquiring an additional 191,058 shares in the last quarter. Tiger Global Management LLC lifted its stake in Zillow Group by 21.7% in the first quarter. Tiger Global Management LLC now owns 7,368,957 shares of the financial services provider’s stock worth $304,927,000 after acquiring an additional 1,312,000 shares during the period. State Street Corp lifted its stake in Zillow Group by 3.9% in the fourth quarter. State Street Corp now owns 3,838,788 shares of the financial services provider’s stock worth $261,882,000 after acquiring an additional 143,726 shares during the period. Finally, Geode Capital Management LLC grew its holdings in Zillow Group by 1.7% during the 4th quarter. Geode Capital Management LLC now owns 3,363,657 shares of the financial services provider’s stock worth $228,898,000 after acquiring an additional 55,323 shares in the last quarter. 71.01% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Zillow Group

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.