Zillow Group (NASDAQ:ZG) Sets New 12-Month Low Following Weak Earnings

Shares of Zillow Group, Inc. (NASDAQ:ZG) hit a new 52-week low on Wednesday following a weaker than expected earnings announcement. The stock traded as low as $51.10 and last traded at $48.9440, with a volume of 13577 shares trading hands. The stock had previously closed at $54.42.

The technology company reported $0.39 EPS for the quarter, missing the consensus estimate of $0.42 by ($0.03). The company had revenue of $654.00 million during the quarter, compared to analysts’ expectations of $650.40 million. Zillow Group had a net margin of 0.89% and a return on equity of 0.56%. The company’s revenue for the quarter was up 18.1% compared to the same quarter last year. During the same period last year, the business earned $0.27 earnings per share.

Key Zillow Group News

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

• Positive Sentiment: Zillow reported revenue growth and strong rental and mortgage momentum — revenue beat consensus and management highlighted rentals growth that supports a narrowing valuation gap. Yahoo: Profitability Milestone
• Positive Sentiment: Several firms still maintain constructive ratings: Citigroup kept a “buy” on ZG while lowering its PT to $78 (still implying meaningful upside), and Piper Sandler reaffirmed an “overweight” with a $70 PT — signaling continued analyst conviction despite cuts. Benzinga: Citi & Piper notes
• Neutral Sentiment: Keefe Bruyette raised its price target to $80 from $65 but kept a Market Perform rating, reflecting uncertainty (notably around the Compass litigation outcome). InsiderMonkey: Analyst roundup
• Neutral Sentiment: Barclays moved to “equal weight” and trimmed its PT to $66, and Cantor Fitzgerald cut its PT to $56 with a “neutral” rating — multiple shops are lowering targets but stopping short of bearish ratings. Benzinga: PT cuts
• Negative Sentiment: Zillow missed Q4 EPS (adjusted EPS ~ $0.39 vs. estimates around $0.40–$0.42) and some analysts trimmed forward forecasts after the print; the earnings shortfall prompted selling despite the revenue beat. Zacks: Q4 EPS misses
• Negative Sentiment: Coverage notes and headlines flagged a projected earnings shortfall and broader sector weakness; several outlets explain the stock decline as investors reacting to margin pressure and higher costs. Fool: Why ZG dropped
• Negative Sentiment: Litigation risk: Barron’s details multiple lawsuits from competitors and consumers across Zillow’s businesses — a material legal overhang that could affect future costs and execution. Barron’s: Litigation coverage
• Negative Sentiment: Market perception: Zillow was called out among weaker real‑estate services names and the stock fell after the Q4 print as investors focused on EPS misses and analyst downgrades. MSN: Sector weakness Yahoo: Stock falls after Q4

Analysts Set New Price Targets

ZG has been the topic of several research analyst reports. UBS Group set a $80.00 price target on shares of Zillow Group in a research report on Wednesday. Citigroup cut their price objective on Zillow Group from $100.00 to $78.00 and set a “buy” rating on the stock in a research note on Thursday. Robert W. Baird set a $67.00 target price on Zillow Group in a research report on Wednesday. The Goldman Sachs Group lowered their price target on Zillow Group from $78.00 to $62.00 and set a “neutral” rating for the company in a report on Wednesday. Finally, JPMorgan Chase & Co. upped their price target on Zillow Group from $94.00 to $95.00 and gave the company an “overweight” rating in a research report on Friday, October 31st. Fifteen research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $78.43.

Insider Buying and Selling at Zillow Group

In other Zillow Group news, Director Erik C. Blachford sold 965 shares of the business’s stock in a transaction dated Wednesday, December 3rd. The shares were sold at an average price of $72.51, for a total transaction of $69,972.15. Following the completion of the transaction, the director directly owned 33,543 shares of the company’s stock, valued at $2,432,202.93. The trade was a 2.80% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, General Counsel Bradley D. Owens sold 2,722 shares of the company’s stock in a transaction dated Wednesday, November 19th. The stock was sold at an average price of $67.41, for a total transaction of $183,490.02. Following the completion of the transaction, the general counsel owned 37,974 shares of the company’s stock, valued at approximately $2,559,827.34. This trade represents a 6.69% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 3,928 shares of company stock valued at $270,937. Corporate insiders own 17.14% of the company’s stock.

Institutional Trading of Zillow Group

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Norges Bank acquired a new stake in shares of Zillow Group in the 2nd quarter worth approximately $159,770,000. M&T Bank Corp raised its holdings in Zillow Group by 38,344.0% during the fourth quarter. M&T Bank Corp now owns 1,604,270 shares of the technology company’s stock worth $120,092,000 after purchasing an additional 1,600,097 shares in the last quarter. UBS Group AG lifted its position in Zillow Group by 44.5% in the fourth quarter. UBS Group AG now owns 1,018,448 shares of the technology company’s stock worth $69,489,000 after purchasing an additional 313,643 shares during the period. Virtu Financial LLC lifted its position in Zillow Group by 271.9% in the third quarter. Virtu Financial LLC now owns 293,718 shares of the technology company’s stock worth $21,864,000 after purchasing an additional 214,743 shares during the period. Finally, Wellington Management Group LLP boosted its stake in Zillow Group by 60.1% during the 3rd quarter. Wellington Management Group LLP now owns 557,735 shares of the technology company’s stock valued at $41,518,000 after purchasing an additional 209,312 shares in the last quarter. 20.32% of the stock is currently owned by institutional investors.

Zillow Group Trading Down 3.1%

The firm has a 50-day moving average price of $65.38 and a 200-day moving average price of $72.06. The company has a market capitalization of $10.58 billion, a price-to-earnings ratio of 485.61, a PEG ratio of 2.62 and a beta of 2.04.

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.