Zillow Group (NASDAQ:ZG) Posts Earnings Results, Beats Expectations By $0.10 EPS
by Amy Steele · The Cerbat GemZillow Group (NASDAQ:ZG – Get Free Report) announced its quarterly earnings results on Wednesday. The technology company reported $0.53 earnings per share for the quarter, topping the consensus estimate of $0.43 by $0.10, Briefing.com reports. Zillow Group had a net margin of 2.27% and a return on equity of 1.37%. The company had revenue of $708.00 million for the quarter, compared to analysts’ expectations of $705.17 million. During the same quarter in the previous year, the business posted $0.41 earnings per share. Zillow Group’s quarterly revenue was up 18.4% on a year-over-year basis.
Zillow Group Trading Down 4.8%
Shares of NASDAQ ZG traded down $2.10 during midday trading on Friday, reaching $41.94. The company had a trading volume of 1,603,001 shares, compared to its average volume of 1,101,313. Zillow Group has a 1 year low of $39.14 and a 1 year high of $90.22. The business’s 50-day simple moving average is $43.69 and its 200 day simple moving average is $57.86. The stock has a market cap of $10.06 billion, a P/E ratio of 167.76, a P/E/G ratio of 2.20 and a beta of 2.04.
Key Zillow Group News
Here are the key news stories impacting Zillow Group this week:
- Positive Sentiment: Zillow beat Q1 estimates, reporting EPS of $0.53 versus $0.43 expected and revenue of $708 million versus $705.17 million, with revenue up 18.4% year over year. Mortgage originations surged 96% and rental revenue climbed 42%, supporting the growth story. Zillow Group (ZG) Q1 Earnings and Revenues Surpass Estimates
- Positive Sentiment: The company also issued Q2 revenue guidance of $750 million to $765 million, which brackets Wall Street expectations and signals continued growth.
- Neutral Sentiment: Several analysts lowered price targets after the earnings release, including Wells Fargo, KeyCorp, Piper Sandler and Mizuho, reflecting a more tempered outlook even as some firms maintained constructive ratings. Analyst target revisions
- Neutral Sentiment: A Rosen Law Firm securities class action investigation notice added another headline for investors, but it does not by itself prove wrongdoing. Rosen Law Firm investigation notice
- Negative Sentiment: WSJ reporting that first-quarter traffic fell 3% to 220 million average monthly unique users may be pressuring sentiment because it suggests softer audience engagement despite stronger profitability. Zillow Posts Higher Profit, Lower Traffic in First Quarter
Analysts Set New Price Targets
Several equities analysts recently commented on the stock. Zacks Research upgraded shares of Zillow Group from a “hold” rating to a “strong-buy” rating in a report on Friday, April 10th. Robert W. Baird cut their price target on Zillow Group from $67.00 to $55.00 and set a “neutral” rating on the stock in a report on Wednesday, March 18th. The Goldman Sachs Group set a $53.00 price target on Zillow Group in a research report on Thursday. Wells Fargo & Company reduced their target price on shares of Zillow Group from $60.00 to $45.00 and set an “equal weight” rating for the company in a report on Thursday. Finally, Barclays decreased 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. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $71.71.
Read Our Latest Analysis on Zillow Group
Insider Buying and Selling
In other Zillow Group news, CFO Jeremy Hofmann sold 7,786 shares of Zillow Group stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $43.73, for a total transaction of $340,481.78. Following the completion of the sale, the chief financial officer owned 57,487 shares of the company’s stock, valued at approximately $2,513,906.51. The trade was a 11.93% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Dan Spaulding sold 5,361 shares of the business’s stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $43.95, for a total value of $235,615.95. Following the sale, the insider owned 41,080 shares in the company, valued at approximately $1,805,466. The trade was a 11.54% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 60,801 shares of company stock worth $2,683,986 over the last three months. Corporate insiders own 29.88% of the company’s stock.
Hedge Funds Weigh In On Zillow Group
Institutional investors have recently bought and sold shares of the business. Arax Advisory Partners lifted its stake in Zillow Group by 402.3% during the 4th quarter. Arax Advisory Partners now owns 442 shares of the technology company’s stock valued at $30,000 after acquiring an additional 354 shares during the period. Kestra Advisory Services LLC acquired a new stake in Zillow Group during the 4th quarter worth about $47,000. Quarry LP purchased a new position in shares of Zillow Group during the 4th quarter valued at 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 buying an additional 1,327 shares during the period. 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 buying an additional 198 shares during the period. 20.32% of the stock is owned by hedge funds and other institutional investors.
About Zillow Group
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.