Zillow Group (NASDAQ:Z) Lowered to Hold Rating by Sanford C. Bernstein

Sanford C. Bernstein cut shares of Zillow Group (NASDAQ:Z) from a strong-buy rating to a hold rating in a research note released on Thursday morning,Zacks.com reports.

A number of other equities analysts have also recently issued reports on Z. Wall Street Zen upgraded Zillow Group from a “hold” rating to a “buy” rating in a report on Saturday, May 9th. Morgan Stanley set a $60.00 price objective on shares of Zillow Group in a research note on Thursday. Deutsche Bank Aktiengesellschaft reduced their price target on shares of Zillow Group from $80.00 to $68.00 and set a “buy” rating for the company in a report on Friday, May 8th. Royal Bank Of Canada dropped their price objective on shares of Zillow Group from $95.00 to $70.00 and set an “outperform” rating on the stock in a report on Wednesday, June 10th. Finally, Keefe, Bruyette & Woods cut their price objective on shares of Zillow Group from $50.00 to $37.00 and set a “market perform” rating on the stock in a research report on Monday, July 13th. Two investment analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Zillow Group currently has an average rating of “Moderate Buy” and an average target price of $68.88.

Zillow Group Trading Down 7.4%

Z stock opened at $33.43 on Thursday. The stock has a 50-day moving average price of $33.08 and a 200-day moving average price of $41.59. Zillow Group has a 1-year low of $29.23 and a 1-year high of $93.88. The firm has a market cap of $7.65 billion, a PE ratio of 151.96, a price-to-earnings-growth ratio of 1.54 and a beta of 1.98.

Zillow Group (NASDAQ:Z) last announced its earnings results on Wednesday, August 5th. The financial services provider reported $0.52 EPS for the quarter, beating the consensus estimate of $0.45 by $0.07. Zillow Group had a return on equity of 2.27% and a net margin of 1.96%.The company had revenue of $772.00 million for the quarter, compared to analyst estimates of $758.10 million. On average, analysts forecast that Zillow Group will post 0.9 earnings per share for the current year.

Insider Activity at Zillow Group

In related news, General Counsel Bradley D. Owens sold 3,364 shares of the firm’s stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $37.23, for a total transaction of $125,241.72. Following the completion of the sale, the general counsel owned 65,245 shares in the company, valued at approximately $2,429,071.35. This trade represents a 4.90% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. 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, insider Dan Spaulding sold 3,078 shares of the business’s stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $37.40, for a total transaction of $115,117.20. Following the completion of the transaction, the insider owned 49,696 shares in the company, valued at approximately $1,858,630.40. The trade was a 5.83% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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. Insiders have sold 42,910 shares of company stock valued at $1,605,732 in the last 90 days. 25.03% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Zillow Group

Several hedge funds have recently made changes to their positions in Z. Assenagon Asset Management S.A. grew its holdings in Zillow Group by 11.9% during the 2nd quarter. Assenagon Asset Management S.A. now owns 303,930 shares of the financial services provider’s stock valued at $9,580,000 after buying an additional 32,387 shares in the last quarter. Arlington Partners LLC increased its holdings in shares of Zillow Group by 22.5% in the second quarter. Arlington Partners LLC now owns 7,235 shares of the financial services provider’s stock worth $228,000 after purchasing an additional 1,327 shares during the period. CX Institutional purchased a new stake in shares of Zillow Group in the 2nd quarter valued at about $110,000. NewEdge Advisors LLC grew its holdings in shares of Zillow Group by 2.0% during the first quarter. NewEdge Advisors LLC now owns 38,052 shares of the financial services provider’s stock worth $1,575,000 after purchasing an additional 750 shares in the last quarter. Finally, Centaurus Financial Inc. bought a new position in shares of Zillow Group in the first quarter worth approximately $166,000. 71.01% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Zillow Group

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

• Positive Sentiment: Second-quarter results exceeded estimates. Zillow reported adjusted EPS of $0.52 versus the $0.45 consensus and revenue of $772 million versus expectations of $758.1 million. Revenue increased 18% year over year, providing evidence of continued demand for the company’s services. Zillow Surpasses Q2 Earnings and Revenue Estimates
• Neutral Sentiment: Management is reshaping its leadership structure. CFO Jeremy Hofmann will also become chief operating officer, while Cassandra Knight becomes Zillow’s first chief legal and policy officer. The changes could improve execution, but they also highlight a period of significant organizational change. Zillow Strengthens Executive Leadership Team
• Negative Sentiment: Forward guidance came in below analyst expectations. Zillow forecast third-quarter revenue of $745 million to $760 million, below the $772.3 million consensus, and full-year revenue of $2.9 billion to $3.0 billion, roughly below or at the low end of the $3.0 billion estimate. The soft outlook drove after-hours selling. Zillow Stock Slides on Soft Outlook
• Negative Sentiment: Restructuring costs pushed Zillow to a loss. The company posted a $4 million net loss despite higher revenue, as $36 million in restructuring expenses weighed on results. Zillow also plans to eliminate just over 500 jobs, or about 7% of its workforce, underscoring management’s concern about a flat housing market. Zillow Layoffs Amid Flat Housing Market
• Negative Sentiment: Housing indicators point to a slower second half. July home sales rose 7% year over year, but sharply lower newly pending sales and higher mortgage rates suggest the improvement may not persist. Zacks also downgraded Zillow from “strong buy” to “hold.” Zillow July Market Report
• Negative Sentiment: Several law firms are promoting a securities-fraud class action involving investors who purchased Zillow shares between February 11, 2025 and May 7, 2026. The August 10 lead-plaintiff deadline adds reputational and potential legal-risk overhang, although the allegations have not been proven. Zillow Securities Class Action Deadline

About Zillow Group

Zillow Group, Inc is an online real estate marketplace company that operates a portfolio of consumer-facing websites and mobile apps designed to connect buyers, sellers, renters, homeowners and real estate professionals. The company’s platforms aggregate property listings, rental listings, and related information to help users search for homes, estimate property values and connect with agents and service providers. Zillow generates revenue primarily through advertising and lead-generation services for real estate professionals, property managers and mortgage lenders.

Key products and services include the Zillow and Trulia consumer websites and apps, which provide searchable listings, photos, neighborhood data and the company’s automated home valuation tool known as the “Zestimate.” Zillow also offers a rentals marketplace, a mortgage marketplace and tools for home buying and selling such as Zillow Premier Agent for agent advertising and leads, as well as ancillary services designed to support transactions, including closing and title-related offerings.