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

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

Zillow Group Price Performance

Shares of NASDAQ ZG traded down $3.13 during midday trading on Thursday, hitting $33.76. 3,356,038 shares of the company’s stock were exchanged, compared to its average volume of 1,200,082. The firm’s fifty day simple moving average is $33.23 and its 200-day simple moving average is $41.83. The company has a market cap of $7.72 billion, a PE ratio of 135.04, a P/E/G ratio of 1.58 and a beta of 1.95. Zillow Group has a twelve month low of $29.03 and a twelve month high of $90.22.

Analyst Upgrades and Downgrades

Several research firms have recently commented on ZG. Benchmark lowered their price target on Zillow Group from $110.00 to $80.00 and set a “buy” rating for the company in a research report on Thursday. Weiss Ratings downgraded Zillow Group from a “sell (d+)” rating to a “sell (d)” rating in a report on Friday, May 22nd. DA Davidson decreased their price objective on Zillow Group from $60.00 to $50.00 and set a “buy” rating for the company in a research note on Thursday. KeyCorp lowered their price objective on Zillow Group from $65.00 to $57.00 and set an “overweight” rating for the company in a research report on Monday. Finally, Mizuho cut their target price on shares of Zillow Group from $65.00 to $53.00 and set a “neutral” rating on the stock in a research note on Thursday, May 7th. Eleven equities research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $56.67.

Insider Buying and Selling

In other Zillow Group news, insider Dan Spaulding sold 3,078 shares of the firm’s 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 sale, the insider owned 49,696 shares of the company’s stock, valued at approximately $1,858,630.40. This trade represents a 5.83% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 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, CEO Jeremy Wacksman sold 9,072 shares of the business’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 sale, 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. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 42,910 shares of company stock valued at $1,605,732 over the last three months. 29.88% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Zillow Group

Several hedge funds have recently made changes to their positions in the company. PNC Financial Services Group Inc. lifted its position in shares of Zillow Group by 10.1% during the fourth 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 in the last quarter. Royal London Asset Management Ltd. increased its stake in Zillow Group by 1.4% during the 2nd quarter. Royal London Asset Management Ltd. now owns 18,217 shares of the technology company’s stock worth $1,248,000 after buying an additional 247 shares during the period. Mackenzie Financial Corp lifted its holdings in Zillow Group by 8.5% in the 3rd quarter. Mackenzie Financial Corp now owns 3,301 shares of the technology company’s stock worth $246,000 after buying an additional 258 shares in the last quarter. California State Teachers Retirement System lifted its holdings in Zillow Group by 9.2% in the 2nd quarter. California State Teachers Retirement System now owns 3,147 shares of the technology company’s stock worth $216,000 after buying an additional 264 shares in the last quarter. Finally, Osaic Holdings Inc. boosted its position in Zillow Group by 8.5% in the 2nd quarter. Osaic Holdings Inc. now owns 3,966 shares of the technology company’s stock valued at $271,000 after buying an additional 310 shares during the last quarter. Hedge funds and other institutional investors own 20.32% of the company’s stock.

Key Zillow Group News

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.