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

Zillow Group (NASDAQ:ZG) issued its quarterly earnings data on Wednesday. The technology company reported $0.52 earnings per share for the quarter, beating analysts’ consensus estimates of $0.44 by $0.08, Briefing.com reports. 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 during the quarter, compared to analysts’ expectations of $758.25 million. During the same period in the previous year, the firm posted $0.40 earnings per share. The company’s revenue was up 17.9% on a year-over-year basis.

Zillow Group Stock Performance

Shares of NASDAQ ZG opened at $33.76 on Friday. The stock’s 50-day simple moving average is $33.19 and its 200-day simple moving average is $41.59. The firm has a market capitalization of $7.72 billion, a PE ratio of 153.46, a price-to-earnings-growth ratio of 1.58 and a beta of 1.95. Zillow Group has a fifty-two week low of $29.03 and a fifty-two week high of $90.22.

Key Headlines 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 $772 million in revenue 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: Despite recent target reductions, Benchmark and DA Davidson maintained “buy” ratings, with price targets of $80 and $50, respectively, implying significant long-term upside from current levels. Benchmark price target update
• Neutral Sentiment: Zillow announced leadership changes, expanding CFO Jeremy Hofmann’s role to chief operating officer and appointing Cassandra Knight as its first chief legal and policy officer. The changes may support execution of its integrated housing “super app” strategy, but also add uncertainty during a period of restructuring. Zillow leadership changes
• Negative Sentiment: Forward guidance disappointed: third-quarter revenue is projected at $745 million-$760 million versus the $772.3 million consensus, while full-year revenue guidance of $2.9 billion-$3.0 billion only reaches the current $3.0 billion estimate. A $36 million restructuring charge also contributed to a reported $4 million quarterly net loss despite the adjusted earnings beat. Zillow earnings and guidance reaction
• Negative Sentiment: Analysts have become more cautious. Evercore and Zacks downgraded ZG to “hold,” while Susquehanna, Cantor Fitzgerald and DA Davidson lowered their price targets; RBC also warned that Zillow’s preferred-model shift could create near-term pressure.
• Negative Sentiment: Zillow’s July housing report showed sales up 7% year over year, but sharply lower newly pending sales and higher mortgage rates suggest weaker momentum in the second half. Multiple law firms are also promoting a securities class action with an August 10 lead-plaintiff deadline, creating an additional overhang. Zillow July Market Report

Insider Transactions at Zillow Group

In other Zillow Group news, 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 transaction, the insider directly owned 134,039 shares in the company, valued at $5,089,460.83. This represents a 2.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Bradley D. Owens sold 3,364 shares of the firm’s stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $37.23, for a total transaction of $125,241.72. Following the sale, the general counsel directly owned 65,245 shares in the company, valued at approximately $2,429,071.35. The trade was a 4.90% 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 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 owned by corporate insiders.

Institutional Investors Weigh In On Zillow Group

Several hedge funds and other institutional investors have recently bought and sold shares of ZG. Arax Advisory Partners boosted its stake in Zillow Group by 402.3% in the fourth 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 acquired a new stake in shares of Zillow Group during the fourth quarter worth about $47,000. Quarry LP acquired a new stake in shares of Zillow Group during the fourth quarter worth about $56,000. Group One Trading LLC lifted its holdings in shares of Zillow Group by 884.7% in the 3rd quarter. Group One Trading LLC now owns 1,477 shares of the technology company’s stock valued at $110,000 after purchasing an additional 1,327 shares during the last quarter. Finally, PNC Financial Services Group Inc. lifted its holdings 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 valued at $147,000 after purchasing an additional 198 shares during the last quarter. 20.32% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on the company. Citigroup dropped their target price on Zillow Group from $68.00 to $52.00 and set a “buy” rating for the company in a research report on Thursday. UBS Group reduced their price target on shares of Zillow Group from $75.00 to $50.00 and set a “buy” rating on the stock in a research report on Friday, July 31st. Wells Fargo & Company increased their price target on shares of Zillow Group from $45.00 to $46.00 and gave the stock an “equal weight” rating in a research report on Tuesday, July 7th. Canaccord Genuity Group lowered their price objective on shares of Zillow Group from $52.00 to $40.00 and set a “hold” rating for the company in a research note on Thursday. Finally, DA Davidson dropped their price objective on shares of Zillow Group from $60.00 to $50.00 and set a “buy” rating for the company in a report on Thursday. Eleven equities research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Zillow Group has an average rating of “Hold” and an average price target of $56.67.

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.