Zillow Group (NASDAQ:ZG) Releases Earnings Results, Beats Estimates By $0.08 EPS

Zillow Group (NASDAQ:ZG) released its earnings results on Wednesday. The technology company reported $0.52 earnings per share for the quarter, topping analysts’ consensus estimates of $0.44 by $0.08, Briefing.com reports. The company had revenue of $772.00 million during the quarter, compared to the consensus estimate of $758.25 million. Zillow Group had a return on equity of 1.41% and a net margin of 2.27%.Zillow Group’s quarterly revenue was up 17.9% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.40 EPS.

Zillow Group Stock Down 8.5%

Shares of NASDAQ:ZG traded down $3.13 during midday trading on Thursday, hitting $33.76. 3,356,038 shares of the stock traded hands, compared to its average volume of 1,200,082. The stock has a market capitalization of $7.72 billion, a PE ratio of 135.04, a P/E/G ratio of 1.58 and a beta of 1.95. The business’s 50 day moving average is $33.23 and its two-hundred day moving average is $41.83. Zillow Group has a one year low of $29.03 and a one year high of $90.22.

Insider Activity at Zillow Group

In other Zillow Group news, CEO Jeremy Wacksman sold 9,072 shares of the company’s stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $36.54, for a total transaction of $331,490.88. Following the completion of the transaction, the chief executive officer owned 153,699 shares of the company’s stock, valued at $5,616,161.46. This represents a 5.57% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Jeremy Hofmann sold 5,501 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 $205,737.40. Following the completion of the sale, the chief financial officer owned 68,315 shares of the company’s stock, valued at approximately $2,554,981. This trade represents a 7.45% decrease in their position. 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. Insiders have sold 42,910 shares of company stock worth $1,605,732 over the last 90 days. 29.88% of the stock is owned by insiders.

Institutional Investors Weigh In On Zillow Group

Institutional investors and hedge funds have recently modified their holdings of the stock. Arax Advisory Partners lifted its stake 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 purchasing an additional 354 shares during the period. Kestra Advisory Services LLC purchased a new position in Zillow Group during the fourth quarter valued at $47,000. Quarry LP bought a new stake in shares of Zillow Group during the 4th quarter valued at $56,000. Group One Trading LLC boosted its holdings 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 valued at $110,000 after buying an additional 1,327 shares in the last quarter. Finally, PNC Financial Services Group Inc. grew its position in shares of Zillow Group by 10.1% in the 4th quarter. PNC Financial Services Group Inc. now owns 2,156 shares of the technology company’s stock worth $147,000 after buying an additional 198 shares during the period. 20.32% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on ZG. BTIG Research reaffirmed a “neutral” rating on shares of Zillow Group in a research note on Thursday, June 11th. Barclays cut their price target on shares of Zillow Group from $58.00 to $54.00 and set an “equal weight” rating for the company in a research report on Friday, May 8th. Piper Sandler reduced their price objective on Zillow Group from $70.00 to $55.00 and set an “overweight” rating on the stock in a research note on Thursday, May 7th. Cantor Fitzgerald decreased their price objective on Zillow Group from $34.00 to $32.00 and set a “neutral” rating on the stock in a report on Thursday. Finally, Susquehanna lowered their target price on Zillow Group from $50.00 to $38.00 and set a “neutral” rating for the company in a research note on Thursday. Eleven investment analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $56.67.

Key Stories Impacting Zillow Group

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

• Positive Sentiment: Zillow exceeded second-quarter expectations, reporting $0.52 in EPS versus the $0.44 consensus and revenue of $772 million versus estimates of $758.25 million. Revenue increased 17.9% year over year, supported by mortgage and rental growth. Zillow Q2 Earnings Surpass Estimates on Solid Revenue Growth
• Positive Sentiment: Benchmark maintained a “buy” rating while lowering its price target to $80 from $110, and DA Davidson kept a “buy” rating with a $50 target. These targets imply substantial potential upside if Zillow’s growth momentum continues. Analyst Price Target Updates
• Neutral Sentiment: Zillow promoted CFO Jeremy Hofmann to chief operating officer and CFO and appointed Cassandra Knight as chief legal and policy officer. The changes are intended to support the company’s integrated housing “super app” strategy, though investors may want to assess execution under the expanded leadership structure. Zillow Group Strengthens Executive Leadership Team
• Negative Sentiment: Management’s outlook was softer than expected: third-quarter revenue guidance of $745 million-$760 million trailed the $772.3 million consensus, while full-year guidance of $2.9 billion-$3.0 billion was at or below the $3.0 billion forecast. Zillow Stock Sinks Despite Q2 Earnings Beat
• Negative Sentiment: Zillow posted a $4 million net loss as $36 million in restructuring costs weighed on results. Layoffs and restructuring raise concerns about near-term profitability despite strong revenue growth. Zillow Swings to Loss on Restructuring Costs
• Negative Sentiment: Analyst sentiment became more cautious: Susquehanna cut its target to $38 and rated the stock “neutral,” Cantor Fitzgerald lowered its target to $32, and Zacks Research downgraded ZG to “hold.” Zillow also reported that July’s 7% home-sales gain may fade as higher mortgage rates sharply reduced newly pending sales. Zillow Group Stock Slides as Bear Notes Pile Up
• Negative Sentiment: Several law firms are publicizing a securities class action concerning alleged anticompetitive conduct and regulatory risks, with an August 10 lead-plaintiff deadline. The litigation creates an additional reputational and legal overhang, although the announcements themselves do not establish wrongdoing. Zillow Securities Class Action Deadline

Zillow Group Company Profile

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.