Zillow Group (NASDAQ:ZG) Announces Quarterly Earnings Results

Zillow Group (NASDAQ:ZG) released its earnings results on Tuesday. The technology company reported $0.39 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.42 by ($0.03), Briefing.com reports. The business had revenue of $654.00 million during the quarter, compared to the consensus estimate of $650.40 million. Zillow Group had a negative net margin of 1.29% and a negative return on equity of 0.56%. The business’s revenue was up 18.1% on a year-over-year basis. During the same period in the prior year, the company earned $0.27 earnings per share.

Zillow Group Stock Performance

NASDAQ:ZG traded down $9.79 during trading hours on Wednesday, reaching $44.63. The stock had a trading volume of 899,121 shares, compared to its average volume of 850,818. Zillow Group has a 52 week low of $44.38 and a 52 week high of $90.22. The company has a 50 day moving average price of $66.55 and a two-hundred day moving average price of $72.45. The stock has a market capitalization of $10.80 billion, a PE ratio of -318.50, a PEG ratio of 3.13 and a beta of 2.04.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on the company. KeyCorp reduced their price objective on shares of Zillow Group from $90.00 to $75.00 and set an “overweight” rating for the company in a research note on Friday. Susquehanna reduced their price target on shares of Zillow Group from $85.00 to $80.00 and set a “neutral” rating for the company in a research report on Monday, November 3rd. Royal Bank Of Canada reiterated an “outperform” rating and issued a $95.00 price objective on shares of Zillow Group in a research report on Monday, December 15th. The Goldman Sachs Group set a $62.00 target price on Zillow Group in a research report on Wednesday. Finally, Mizuho set a $65.00 price target on Zillow Group in a report on Wednesday. Sixteen equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $81.40.

Key Zillow Group News

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

• Positive Sentiment: Revenue and profit trends were constructive: Zillow reported year-over-year revenue growth (Q4 revenue ~ $654M) and swung to a small quarterly profit. This supports the case for continued top-line momentum as the housing market improves. WSJ: Zillow Swings to Fourth-Quarter Profit
• Positive Sentiment: Management issued Q1 revenue guidance of roughly $700–$710M, above Street consensus (~$691M), which could underpin near-term revenue expectations. Zillow press release
• Positive Sentiment: Some analysts and outlets remain constructive on longer-term growth prospects (Bernstein/Baron’s commentary highlights continued upside if housing activity recovers). Globe & Mail: Bernstein Buy Barron’s: Why Wall Street Still Likes Zillow
• Neutral Sentiment: Detailed analyses and the full earnings-call transcript are available for investors who want to dig into segment-level trends and management commentary. Earnings call transcript Zacks analysis
• Negative Sentiment: EPS materially missed consensus (company reported well below Street estimates), which was the primary trigger for the stock decline and investor concern. Yahoo: Zillow stock falls after Q4 earnings miss
• Negative Sentiment: Several sell-side firms trimmed price targets and/or moved to neutral/equal-weight after the print (Cantor Fitzgerald to $56 neutral; Wells Fargo to $61 equal weight), adding downward pressure on the stock. Benzinga: Cantor Fitzgerald PT cut Benzinga: Wells Fargo PT cut

Insider Activity

In other Zillow Group news, CFO Jeremy Hofmann sold 7,865 shares of the business’s stock in a transaction on Friday, November 14th. The shares were sold at an average price of $69.53, for a total transaction of $546,853.45. Following the transaction, the chief financial officer owned 70,811 shares in the company, valued at $4,923,488.83. The trade was a 10.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Erik C. Blachford sold 965 shares of the stock in a transaction on 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 sale, the director directly owned 33,543 shares in the company, valued at approximately $2,432,202.93. This represents a 2.80% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 28,103 shares of company stock worth $1,956,109. 17.14% of the stock is owned by corporate insiders.

Institutional Trading of Zillow Group

A number of large investors have recently made changes to their positions in the stock. AQR Capital Management LLC increased its position in Zillow Group by 40.5% during the 1st quarter. AQR Capital Management LLC now owns 12,890 shares of the technology company’s stock valued at $862,000 after purchasing an additional 3,717 shares during the period. Millennium Management LLC boosted its stake in shares of Zillow Group by 110.8% during the first quarter. Millennium Management LLC now owns 290,999 shares of the technology company’s stock valued at $19,456,000 after purchasing an additional 152,955 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in Zillow Group by 7.0% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 87,912 shares of the technology company’s stock valued at $5,878,000 after buying an additional 5,737 shares during the period. JPMorgan Chase & Co. raised its stake in Zillow Group by 5.8% in the second quarter. JPMorgan Chase & Co. now owns 21,093 shares of the technology company’s stock worth $1,445,000 after buying an additional 1,150 shares in the last quarter. Finally, Prudential Financial Inc. lifted its holdings in Zillow Group by 16.3% during the second quarter. Prudential Financial Inc. now owns 7,933 shares of the technology company’s stock worth $543,000 after buying an additional 1,110 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.