Zillow Group (NASDAQ:Z) Shares Gap Down on Disappointing Earnings

Zillow Group, Inc. (NASDAQ:Z)’s stock price gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $41.89, but opened at $40.22. Zillow Group shares last traded at $39.13, with a volume of 2,061,614 shares.

The financial services provider reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.36 by ($0.42). Zillow Group had a negative net margin of 7.93% and a negative return on equity of 2.30%. The business had revenue of $529.00 million for the quarter, compared to analysts’ expectations of $509.30 million. During the same period last year, the firm posted ($0.06) earnings per share.

Analyst Ratings Changes

Z has been the subject of a number of analyst reports. Wedbush reduced their price objective on Zillow Group from $60.00 to $50.00 and set a “neutral” rating for the company in a research report on Thursday. Needham & Company LLC reaffirmed a “hold” rating on shares of Zillow Group in a research report on Thursday. JPMorgan Chase & Co. dropped their price target on shares of Zillow Group from $65.00 to $61.00 and set an “overweight” rating on the stock in a research note on Thursday. Finally, Jefferies Financial Group raised their price objective on shares of Zillow Group from $70.00 to $75.00 and gave the company a “buy” rating in a research note on Monday, March 4th. Four research analysts have rated the stock with a hold rating and two have given a buy rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $56.20.

Insider Activity at Zillow Group

In related news, CAO Jennifer Rock sold 7,352 shares of the company’s stock in a transaction on Wednesday, February 14th. The shares were sold at an average price of $57.29, for a total value of $421,196.08. Following the completion of the transaction, the chief accounting officer now owns 56,384 shares of the company’s stock, valued at approximately $3,230,239.36. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. In related news, insider Susan Daimler sold 15,206 shares of the company’s stock in a transaction on Friday, March 1st. The shares were sold at an average price of $56.36, for a total transaction of $857,010.16. Following the completion of the transaction, the insider now owns 36,148 shares in the company, valued at $2,037,301.28. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CAO Jennifer Rock sold 7,352 shares of Zillow Group stock in a transaction on Wednesday, February 14th. The shares were sold at an average price of $57.29, for a total transaction of $421,196.08. Following the completion of the sale, the chief accounting officer now owns 56,384 shares in the company, valued at $3,230,239.36. The disclosure for this sale can be found here. In the last ninety days, insiders sold 171,289 shares of company stock worth $9,642,508. 23.76% of the stock is owned by company insiders.

Institutional Trading of Zillow Group

Hedge funds have recently modified their holdings of the company. GAMMA Investing LLC bought a new position in shares of Zillow Group in the 4th quarter valued at about $25,000. Concord Wealth Partners purchased a new position in Zillow Group during the first quarter worth $26,000. Bank Julius Baer & Co. Ltd Zurich purchased a new stake in shares of Zillow Group in the third quarter valued at $33,000. Fidelis Capital Partners LLC bought a new stake in shares of Zillow Group in the 1st quarter worth about $37,000. Finally, Montag A & Associates Inc. bought a new stake in shares of Zillow Group in the 3rd quarter worth about $37,000. 71.01% of the stock is owned by hedge funds and other institutional investors.

Zillow Group Stock Performance

The stock has a market capitalization of $9.50 billion, a PE ratio of -58.97 and a beta of 1.79. The business’s 50 day moving average is $48.55 and its 200 day moving average is $48.83. The company has a current ratio of 3.24, a quick ratio of 3.24 and a debt-to-equity ratio of 0.22.

Zillow Group Company Profile

Zillow Group, Inc operates real estate brands in mobile applications and Websites in the United States. The company offers premier agent and rentals marketplaces, new construction marketplaces, advertising, display advertising, and business technology solutions, as well as dotloop and floor plans. It also provides mortgage originations and the sale of mortgages, and advertising to mortgage lenders and other mortgage professionals; and title and escrow services.