Zillow Group (NASDAQ:ZG) Releases Quarterly Earnings Results, Misses Estimates By $0.05 EPS

Zillow Group (NASDAQ:ZG) released its quarterly earnings data on Wednesday. The technology company reported $0.55 earnings per share for the quarter, missing the consensus estimate of $0.60 by ($0.05), Briefing.com reports. Zillow Group had a negative net margin of 3.95% and a positive return on equity of 3.18%. The firm had revenue of $724.00 million during the quarter, compared to analyst estimates of $753.66 million. During the same period in the prior year, the firm earned $0.44 earnings per share. The business’s revenue for the quarter was up 7.1% on a year-over-year basis.

Zillow Group Stock Performance

ZG stock opened at $31.21 on Friday. Zillow Group has a 1 year low of $27.25 and a 1 year high of $74.80. The firm has a market cap of $7.02 billion, a P/E ratio of -60.02, a price-to-earnings-growth ratio of 1.47 and a beta of 1.95. The stock has a 50-day simple moving average of $31.72 and a 200-day simple moving average of $38.68.

Key Stories Impacting Zillow Group

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

• Positive Sentiment: Piper Sandler kept its “overweight” rating despite lowering its price target to $39 from $46. Citizens JMP also maintained “market outperform,” with a reduced $40 target. Both targets imply upside from the reference price. Piper Sandler rating Citizens JMP rating
• Neutral Sentiment: Revenue rose 7.1% year over year to $724 million, with rentals helping offset weak home-sales conditions. However, the result was below analysts’ $753.7 million estimate, and EPS of $0.55 also missed the $0.60 consensus. Zillow revenue and rentals Zillow Q3 results
• Negative Sentiment: Housing-market indicators worsened: newly pending listings fell 16.8% year over year in October, while Zillow’s preliminary measure of existing home sales declined 8.7%. Fewer pending sales may weigh on Zillow’s transaction-related business. October Zillow Market Report
• Negative Sentiment: Several analysts lowered price targets after the results. Wells Fargo cut its target to $30 and kept an “equal weight” rating; Cantor Fitzgerald lowered its target to $26 and assigned “neutral”; Bernstein reduced its target to $34 while maintaining “market perform.” The broad pattern of target reductions reflects caution about Zillow’s outlook. Wells Fargo rating Cantor Fitzgerald rating

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on ZG shares. Royal Bank Of Canada dropped their target price on shares of Zillow Group from $55.00 to $45.00 and set an “outperform” rating for the company in a research report on Tuesday. Wells Fargo & Company decreased their price objective on shares of Zillow Group from $31.00 to $30.00 and set an “equal weight” rating for the company in a research note on Thursday. Citizens Jmp decreased their price objective on shares of Zillow Group from $46.00 to $40.00 and set a “market outperform” rating for the company in a research note on Thursday. 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 research report on Thursday, August 6th. Finally, Cantor Fitzgerald cut their target price on shares of Zillow Group from $32.00 to $26.00 and set a “neutral” rating on the stock in a research note on Thursday. Ten analysts have rated the stock with a Buy rating, eleven have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $48.43.

Insider Buying and Selling at Zillow Group

In other Zillow Group news, CEO Jeremy Wacksman sold 9,339 shares of the stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $34.18, for a total value of $319,207.02. Following the completion of the sale, the chief executive officer owned 138,574 shares of the company’s stock, valued at $4,736,459.32. This trade represents a 6.31% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 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, Director Claire Thielke sold 1,187 shares of the stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $35.71, for a total transaction of $42,387.77. Following the completion of the sale, the director directly owned 2,375 shares of the company’s stock, valued at $84,811.25. This trade represents a 33.32% 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. In the last quarter, insiders sold 38,539 shares of company stock worth $1,323,800. Insiders own 29.88% of the company’s stock.

About Zillow Group

Zillow Group, Inc is a digital real estate company that operates online marketplaces and technology platforms for consumers, real estate professionals, and other housing industry participants. Its services are designed to help people search for homes, understand property values, connect with agents, and manage transactions throughout the residential real estate process.

The company’s portfolio includes Zillow, Trulia, StreetEasy, HotPads, and ShowingTime+. Zillow provides home listings, estimated property values, rental information, agent connections, mortgage resources, and other housing-related tools.